Smart Strategies To Effectively Price Parking
Parking pricing varies significantly depending on the type of destination a lot or garage serves, as well as the location. Overpricing parking will cause patrons to search for other options while underpricing parking results in leaving money on the table.
But parking pricing decisions don’t have to be stressful. Consider a few of the following strategies to help you perfectly price your parking to ensure you are maximizing your revenues:
- Rate Surveys: With so much information available online today, it’s quite simple to do a quick analysis of the parking prices at the parking lots and garages near your property to understand what others are charging and what people parking around you are willing to pay.
- Define your Target Parker: Based on what is around the parking facility, be sure to survey the business. Will the facility support daily transient parkers with a high turnover, or will it be geared more toward monthly or long-term parkers”? Your rate will be determined based on these criteria.
- Provide Options: People like to have options when it comes to any decision they need to make. Provide pricing options to help them make the decision that works for them. Whether a discount for using an app, or reduced pricing for the longer they stay, they will appreciate the “option” of options.
- Event Parking: Often, event parking is priced very differently than everyday parking pricing. Typically, it is more expensive (unless the venue or event organizers works out a discount structure). But it is also generally implemented as a flat fee and required upon entry to ensure a faster and more efficient exiting process afterward.
- Overnight Parking: Overnight parking is also often priced differently than daily parking pricing. Specifically when supporting hotels, or in downtown urban areas. Some operators provide significantly discounted rates to patrons to enter after a certain hour and leave before the morning rush. Not only does this help attract additional customers overnight, but it provides an additional revenue stream.
Parking pricing doesn’t have to be as confusing or stressful as it seems. It is key to understand the location, typical customer base, and opportunities for additional revenue to make multiple pricing options, cover all potential customers, and ensure that you are taking advantage of all revenue options available.