How to monetize your parking lot?

How to monetize your parking lot
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If you own a business, you already know that maximizing your assets, particularly those that are idle or underutilized, is the key to making more money. Parking monetization is a fantastic way to "unlock" the value of your parking space and turn it into a revenue generator. But how exactly does it work? And where do you begin? Here are some tips for effectively monetizing your parking lot.

Start profiting from your parking space 

Parking lot monetization is the practice of generating extra cash by allowing a third party to utilize your parking space. Many businesses in urban settings are turning their parking into an additional revenue source. If you have a huge parking space that is underutilized, it could be a great opportunity for your company. So, let's get your company's car park monetization process started.

Consider installing parking barriers

Consider installing parking barriers

The first thing to do when looking at ways to monetize your parking is to identify the best way to enforce parking restrictions. Parking barriers are devices that prevent unauthorized parking and control car access. They come in a variety of shapes and sizes, depending on their function. By installing a gate or chain with an ANPR camera, you can easily keep track of who comes in and out of your lot. It also gives you the opportunity to charge people for their parking time so that you don’t have to rely on other methods such as meters, attendants, or security guards.  

Barriers are also an effective way to manage parking spaces. You can set aside certain areas for employees only and allow customers to park in other parts of the lot. This will allow you to create a more organized environment and limit traffic congestion.

You can also install parking displays that will show how many spaces are left in the lot, which is convenient for drivers looking for a place to park.

Also read: How To Make Your Parking Lot Smart & Modern 

Gather information about competitors’ parking rates, rules, and amenities

The next thing to do is to gather information about competitors' rates in your area. This will give you an idea of what's out there, as well as help you decide how much you should charge to stay competitive. The information should include:

  • The price per hour/day or week?
  • Is there a monthly rate? 
  • Do they have parking time limits?
  • What methods of payment are accepted?
  • What additional services do they provide?

If there is no competition in your area, you must consider other factors, such as whether there is a demand for parking in the area and whether there are any other businesses nearby that could use your lot for customer and employee parking. Parking rates can vary greatly depending on location and time of year, so it's important to do some research before establishing any sort of pricing structure.

Invest in parking management software

Invest in parking management software
Source: image by Freepik

Parking management software is a powerful tool that can help you manage your parking lot more efficiently. It allows you to manage traffic flow, monitor occupancy levels, and gather parking behavior data. In addition to these advantages, parking management software may help you determine which portions of your property need improvements and where the room for expansion is.

There are many different types of software available on the market today, but before you invest in any one of them, make sure that it meets all of your needs.  You might also want to look at the software's ability to integrate with other software ( eg. accounting or ticketing software) that you already have in place. If you're not sure where to start, here are some things you should keep in mind while researching different systems:

  • What kind of data does the program collect?
  • Is it possible to get real-time reports?
  • Can I access my info from any location?
  • What kind of support does the company offer?

Introduce parking fees

So, you've done all the monetization market research, and you're ready to introduce parking prices. Here's how to do it:

  • Create a clear structure for your parking fees that includes short-term, long-term, and overnight parking.
  • Ensure adequate signage explaining the price structure and hours of operation is in place before introducing fees.
  • Don't forget about disabled parking spaces - these are often exempt from charges for people with a valid disabled badge or permit.

Keep in mind that parking charges are an important part of any business strategy because  they help you manage traffic flow and can increase revenue when set at the right price point.

Use dynamic pricing

Once you have successfully introduced basic parking fees, you might want to consider using dynamic pricing as a more advanced way of monetizing your parking spots.

Dynamic pricing is a pricing system that allows prices to change based on demand at specific times and dates. This means that when there are fewer available spaces, the prices will be higher, and vice versa. Dynamic pricing can also be used during peak times like Christmas, New Year's, and school holidays, when more people need to park at your car park.

It works by using data analytics to figure out how many people are looking to park in your facility and then adjusting the prices accordingly. The advantages of dynamic pricing far outweigh the costs of implementing such a system. Not only does dynamic pricing help businesses increase revenue, but it also ensures that customers get the parking spaces they want when they need them the most (on holidays and weekends).

Also read: Parking Analytics & How to Use Provided Data

Enable cashless payments

Enable cashless payment
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Cashless payment is the future of parking services. As more people become accustomed to paying for things with their phones and other devices, they're expecting to be able to pay for services like parking without using cash. 

The benefits of cashless parking include:

  • Faster service. Cashless payments can be made quickly and easily. This makes for a faster and more efficient service for everyone involved.
  • Reduced traffic congestion. By eliminating the need for customers to queue at payment terminals, you'll be able to reduce traffic congestion around your premises, which will make it easier for them to get in and out quickly.
  • No cash handling costs. Cashless payments don't require any money handling, which means lower costs and a better customer experience.
  • Decreased security risks. There's less chance of theft or fraud when there's no cash involved in transaction

Charge for reserved spots

Reserved spots are a great way to increase revenue from your car park  while also providing clients with peace of mind by ensuring that they will have a place available for them when they arrive. Not only will providing this service increase client loyalty and satisfaction, it will allow you to provide additional services that set you apart from the competitors. Prior to implementing reservations, you need to decide on how many spots will be labeled as reserved areas, since this will impact how much money you make from this service. 

Installing parking protection measures such as a single post protective barrier to each reserved space or a gate at the entrance to the reserved parking area is the best way to ensure that when someone comes at their allotted time, their reserved place is available. If there is a great demand for this service, try adding additional reserved places or raising rates. 

You can enable parking reservations through an app or website, which will allow your customers to book spots ahead of time. This feature is especially convenient for businesses that have high traffic at specific times of day or days of the week. 

Offer parking passes

Offering parking passes is a great way to monetize your parking while still be able to offer your employees or important clients to park at your lot for free. The pass identifies the driver and allows them to park in designated areas. 

Parking passes can also be used as part of an employee compensation package or as a perk for customers and partners. You can offer various types of passes:

  • Employee passes
  • Visitor passes
  • Daily passes
  • Monthly passes
  • Annual passes

You can also provide additional amenities for the pass holder, such as VIP parking, car cleaning, and other special privileges.

Install EV charging stations

Install EV charging stations
Source: Image by Freepik

The number of electric vehicles on the road is increasing. With it, the demand for charging stations is rapidly rising—and with good reason: EV drivers prefer the convenience of being able to park and charge their vehicle simultaneously. And because of that, EV charging stations are a great way to attract new customers to park in your lot.  

When you install an EV charging station, you not only get immediate credibility as an eco friendly company, but it also gives you a new way to monetize your lot. 

EV charging stations help you increase revenue by increasing the amount of time spent at your car park. It also allows you to differentiate yourself from competitors by providing a service that makes your facility more appealing than theirs—which results in more clients and income for you!

Also read: Top 10 Cities in Europe with the Most EV Charging Stations

Allow advertising

An easy way to make money from your parking is by allowing companies to advertise on signs in or around the space. This can be done through billboards or even digital screens

Billboards are usually located near entrances or exits so that drivers notice them as they’re leaving or entering the lot.  Digital screens are very versatile and can be used to display advertisements at key points throughout the lot. This will allow you to show different ads at different times, depending on what’s being advertised and when you want it seen by potential customers.

The best thing about this is that it’s straightforward! Many businesses will be interested in paying for advertising space in a nearby parking lot since they know they will recoup their investment via increased sales and foot traffic.

The outcome of effective parking monetization

More and more business owners are coming around to the idea of adding additional parking revenue streams. The possibilities for parking lot monetization are almost limitless. While the topic is complex, the basic idea is simple - to profit from your company's untapped potential. So don't be afraid to experiment in order to maximize revenues and discover what works best for you. We hope this blog article gave you some new ideas as well as a different perspective on the various ways business owners can and do make money from their parking spaces. The outcome of effective parking monetization can be quite impressive. If you're interested in learning more about how you can use smart parking solutions to increase revenue at your location, get in touch with us to discuss available options.  

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