If you own a parking lot, the amount you can make daily, weekly, monthly, and annually from the parking lot cannot be categorically stated.
This is so because no two businesses generate the same income monthly. As a matter of fact, two similar businesses can operate in a location with one of the businesses running at a loss while the other business thrives and make profits year in and year out.
Interestingly, there are factors that must be in place for a business to generate profit. In this article, we will discuss some of the factors that will help you boost your earning if you own and operate a parking lot business.
6 Factors That Determine How Much a Parking Lot Business Can Generate
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The Size of the Parking Lot
No matter the effort you put into marketing and promoting your parking lot, if you have limited space, there will be a limit to the amount you can earn.
For example, a small parking lot facility with 20 spaces that earn, on average, $10 per space per day will have $200 per day in gross revenues and earn $73,000 in gross revenues per year. So also, a big lot facility with 200 spaces that earn, on average, $10 per space per day will make $2,000 per day in gross revenues and $730,000 in gross revenues per year.
In essence, the larger the parking lot facility, the more income the owner of the parking business will make from the business.
The Marketing and Promotional Strategy of the Parking Lot
Another major factor that can determine the amount a parking lot business owner can make is the marketing and promotional strategy of the parking lot. Trust me, if a parking lot is able to adopt top-notch marketing and promotional strategies, they are going to generate good revenue from the business.
Part of what you should do if you want to earn more from your parking lot business is to make sure you encourage people to pick up membership from your parking lot and also do a give back when your customers recommend your parking lot to their family members, friends, and colleagues at work.
The Location of Your Parking Lot
Let me categorically state that no matter the marketing and promotion strategies you have for your parking lot business, if the parking lot is not strategically located, you will struggle to generate revenue for the business.
A parking lot situated in a high-traffic area is likely to attract more customers and generate higher revenue. In a nutshell, if you want to make more money from a parking lot business, then you must make sure you are in a location that is busy, has fewer free parking spaces, and a location that is easy to locate.
Although, it will cost you more to secure a parking lot facility in a busy location or in a city center, but the fact remains that it is easier to make more money from such a location than from any other location.
Additional Services and Amenities Offerings
Another major factor that can determine how much the owner of a parking lot business can make is, of course, the additional services and amenities the parking lot business is offering.
We all know that a parking lot business basically provides parking spaces for vehicles in exchange for a fee, but the truth is that, when a parking lot business offers additional services and amenities, the revenue potential of the business will increase.
Interestingly, there are several additional services a parking lot business can offer such as valet parking, car washes, electric vehicle charging stations, or bicycle parking, further diversifying their revenue streams. Trust me, these additional services can attract customers and allow for higher pricing.
The Pricing Strategy of the Parking Lot Business
The pricing structure of the parking lot business is another major factor that can determine the amount the business can make.
The truth is that customers will always look for a pricing model that favors them, and if they find one, they will easily become loyal customers. As a parking lot business owner who wants to make more money from the business, you should carefully consider factors such as daily rates, hourly rates, and long-term parking rates.
If you want to maximize profits from your parking lot business, then you must make sure to strike a balance between affordability for customers and generating sufficient revenue for the business.
Excellent Customer Service Offering
Lastly, another factor that can determine how much a parking lot owner can make is the customer services offering of the business. It is as simple as this – if a parking lot business is known to deploy excellent customer services, it will continue to welcome repeat customers on a regular basis.
In essence, if you want to make more money from your parking lot business, you must make sure you don’t only work on your marketing and promotional strategies (your front door) which will help you welcome new customers, but you must also make sure you work on your back door – that is your customer service approach, with that, you will be able to retain your customers.