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.

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.

Summary

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.