With the constant search to find new ways of adding value, the opportunities in parking facilities are still often overlooked.
Many owners have cut operating costs by adopting new technologies and automation, but changes in parking are occurring at a rapid pace, necessitating constant proactive review of advances in the parking industry. These shifts can squeeze more cash out of the parking asset. Here are the top five (at the moment):
1. Dynamic pricing.
Even if your market is not one using full dynamic pricing yet, there are ways to dip your toe in the water and apply dynamic pricing to isolated groups or times. Some form of dynamic pricing should be explored, even if it is only implemented with your online parking reservation customers, for example.
2. Proper contract review for new parking equipment purchases.
With the many options available in equipment vendor pricing models, it is imperative that an expert with hands on equipment deployment experience, also check the contract beyond the standard legal review. Oversights on something as simple as not properly addressing who owns your data (which should be you), can costs thousands of dollars down the road as you integrate with other valuable technologies.
3. Holding off on revenue control purchases where possible.
If it is not a newly developed asset or you can hobble by with a system that is functioning from a customer service standpoint and no revenue loopholes, wait before buying. There are way too many advances being made right now and you do not want to place capital into outdated systems that you are forced to live with for the next 5-7 years.
4. Avoid one size fits all operating strategies.
One of the most common errors where value can get lost, is by assuming a successful operating strategy from one asset will be equally successful at another. No different than each building asset is unique, the same holds true for the parking garage. There is no quick blanket formula to optimizing a garage. The unique characteristics must be considered and a plan designed around those idiosyncrasies. The plan must also be under constant review, so that opportunities are not missed for changes in the market. This includes consistent review of rates, operating hours, and new generators in the area. Worry less about additional payroll and focus on potential upside. Constantly test, evaluate, and adjust.
5. Review lighting, fans, and sealers.
Old technology can be enormously expensive and rob the bottom line. Replacing old lights with LED’s, arming ventilation fans with CO sensors for more efficiency, and sealing floors to delay concrete restoration all add up.
Before dismissing any one of these, consider working with a One Parking professional that can provide sound advice on ever-changing ways to keep building asset value.
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