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Understanding the costs of your parking operation: How to optimise

Understanding the costs of your parking operation: How to optimise

The parking industry is highly competitive, and growing a parking business requires operational excellence. Finding ways to reduce costs while maintaining a high quality service is an important driver in parking operations. In this blog post, we explore the costs involved in a running a parking business.

chart 1

The typical costs for a parking operator can vary widely based on the size, location, and type of parking facility they manage. However, the main categories of costs generally include:

1. Operational Costs

  • Staffing: Salaries and wages for attendants, security personnel, and administrative staff.
  • Maintenance: Routine maintenance of the parking lot or garage, including cleaning, landscaping, and repairs.
  • Utilities: Costs for lighting, heating, ventilation, and air conditioning (HVAC) in enclosed parking facilities.
  • Insurance: Liability insurance to cover potential accidents, property damage, and other risks.
  • Security: Costs associated with surveillance systems, security guards, and other safety measures.

2. Technology and Equipment

  • Parking Management Systems: Software and hardware for managing entry/exit, payments, and space allocation.
  • Payment Systems: Installation and maintenance of payment kiosks, ticket machines, or mobile payment systems.
  • Access Control Systems: Barriers, gates, and automated access control equipment.
  • Hint: Use the ParkMan platform to dramatically reduce your technology costs!

3. Property-Related Costs

  • Rent or Lease: If the operator leases the property, this includes rent or lease payments.
  • Taxes: Property taxes if the operator owns the property.
  • Depreciation: Depreciation of owned property and equipment.

4. Regulatory and Compliance Costs

  • Permits and Licenses: Fees for obtaining necessary permits and licenses to operate.
  • Compliance Costs: Expenses related to ensuring compliance with local, state, and federal regulations.

5. Marketing and Customer Service

  • Marketing: Costs associated with advertising and marketing to attract customers.
  • Customer Service: Expenses for customer service operations, including handling complaints and feedback.
  • Hint: Use the ParkMan platform to automate your marketing and customer service.

6. Miscellaneous Costs

  • Supplies: Office and operational supplies.
  • Legal Fees: Costs for legal services related to contracts, disputes, or other legal matters.


Here's a rough breakdown of these costs:

  • Staffing: 30-40% of total costs
  • Maintenance and Utilities: 20-30%
  • Technology and Equipment: 15-25%
  • Property-Related Costs: 10-20%
  • Regulatory and Compliance Costs: 5-10%
  • Marketing and Customer Service: 5-10%
  • Miscellaneous: 5-10%

These percentages can vary based on specific circumstances such as the scale of the operation, the location, and the type of parking services provided (e.g., surface lot vs. multi-story garage). Operators need to carefully manage these costs to maintain profitability while providing high-quality service to customers.

How ParkMan can help

ParkMan wants to help our clients bring down the technology costs and marketing costs to a minimum. Explore our services and talk to our sales - we want to be the most parking operator-friendly software company on the market.


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