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Looking to generate car park revenue from an existing car park or unused land? If you have an area of land available in a busy urban area, there are several options you can consider. You could sell the land to a developer, build something on it yourself, or try something completely different such as using the land for car park spaces. Learn more about the revenue-generating possibility of car parks, with some benefits of the strategy and tips for more effective car park revenue in the long term.
When people think about ways of generating revenue in a modern city, a car park is rarely one of the first things they consider. After all, it’s one of the less exciting options that someone can choose from, with no need for drastic development or changes to the land. People are overlooking the value of their land; despite the fact it provides companies with an opportunity to make more money from an almost entirely passive asset.
There are several significant benefits of focusing on car park revenue generation as a route for more substantial business income. These include:
Modern cities are increasingly designed with cars in mind, as personal vehicles are the primary way people get from home to work and back again. In highly populated areas, people need somewhere to keep their vehicles. Take advantage of the constant demand for parking spaces by offering some of your available land as paid parking.
Using a car park to earn money is a financially efficient use of your resources. Financial efficiency refers to using your assets to generate income wherever possible. If you have some land you’re not using, a car park is an excellent way to get more money from your available assets.
Running a car park requires relatively little effort, with modern parking technologies helping you automate the space’s operation. You can continue business as usual without being distracted by the requirements of running a car park, as there are very few.
There are several strategies that companies use when maximising their car park revenue. One of these strategies is variable pricing, in which you change the price of a parking space depending on demand on any given day. A car park next to a football stadium, for example, benefits from hiking prices on matchday to make the most of the spike in people needing parking.
Another strategy for maximising revenue is creating a loyalty programme. People pay to be a part of your loyalty programme and cut down on their costs by a certain percentage each time they park with you. This guarantees a base level of revenue whilst customers have an easier time with your car park.
Having a revenue generation plan is all well and good, but it only sometimes translates into earning revenue. Be meticulous throughout the process and be aware of any potential flaws in your implementation, such as lower demand than expected. Collecting as much data as possible and analysing it thoroughly provides you with significant insight into your car park and any potential revenue generation issues.
Another step to effective implementation is ensuring your plan is as accurate and effective as possible. Most car parks appear the same and have similar features, and that’s because those features work. If you’re looking to adopt the model in any significant way, consult with experts to make sure that anything you try has the potential to work effectively. This prevents planning errors and makes your implementation as profitable as possible.
As with any financial venture, organisations are sure to come up against challenges in the implementation. Thankfully, experts in the industry, such as Bransby Wilson, have experience dealing with the majority of the challenges that car parking offers. For example, ANPR technology’s implementation makes dealing with fare avoidance far more manageable, with online permit management removing any potential administrative issues in the operation of a car park.
Consider consulting with and using expert car park administration throughout your implementation. You can fall back on their experience and knowledge, making the most of your space and taking advantage of any opportunities you wouldn’t have noticed if you were working independently on the monetisation process.
Ultimately, not only is the monetisation of car parks an essential part of improving your company’s financial health but doing so effectively is a must. Depending on location and demand, car park revenue generation can earn companies a significant chunk of their income for any given period.
If you’re interested in generating car park revenue or require further assistance with your car park management, please contact our experts at Bransby Wilson today.