Do you want to know how much valet parking companies make yearly? If YES, here is an analysis of the profit margin & income potential of a valet parking business.
Restaurants, nightclubs, hotels and convention centers sometimes need the services of a well – dressed, bonded parking staff. The aim of this business is to have drivers who help clients park their cars. Your drivers are to make great impression on customers so you can secure lots of repeat business and word-of-mouth referrals.
To effectively start and run this business, you need a driver’s license, the ability to obtain third – party liability insurance, and an outgoing friendly personality. Also, you need to secure uniforms that are emblazoned with your business name and slogan. It is advisable you offer an elite level of valet service for properties that cater to a high – end crowd in a glutted marketplace.
Profit Potential of a Valet Parking Company
Valet companies generate revenue by charging a fee to the vehicle owner or the establishment. If a business is offering complimentary valet parking, it simply means that the owner of the location or host of the event has agreed to a contract with the valet company to pay for the parking. This is often a good business strategy as it creates a more luxurious-feeling environment, where people are prone to spend more money.
In this industry, the cost of parking the vehicles can be absorbed by other parts of the business the valet serves, whether it is a restaurant, casino, etc. According to reports, this business can be started with minimal cash and the profit potential is excellent, as rates for valet parking services are in the range of $75 to $100 per hour for a two – to – three person crew. And it goes almost without saying that tips can really add up.
The U.S. Bureau of Labour Statistics classifies valets as “parking lot attendants” who earned average annual salaries of $21,540 as of May 2012, while Personal valets earned average salaries of $23,000 annually as of 2013. Note that most valets have high school diplomas or less. Training is mostly conducted on the job. Other important qualifications for valets include a valid driver’s license, the ability to speak English and customer service skills.
According to reports, the income of valet companies can vary somehow by industry. For instance, valet companies earned some of the highest incomes of $29,830 per year working for state government agencies. They also earned comparatively high incomes as local government contractors– $24,470 annually.
According to statistics, valets generate income closer to the national average at casinos and other gambling establishments at $21,150. Moreover, those who work with businesses in the spectator sports industries made slightly less at $21,110 per year.
Their income may also vary by state because of living costs and demand. Those who work in Massachusetts and Illinois, for instance, likely earn more because of higher living costs. According to industry data, valets in these two states earned $25,100 and $23,870 per year, respectively.
But valets in Montana – who earned the highest salaries of $25,570 –, may earn more because it is harder to find valets in this sparsely populated state. Valets in Pennsylvania, Florida and Texas earned salaries of $21,610, $19,660 and $19,270, respectively.
Generally, restaurants and other businesses that use valet companies attract more customers as the economy improves. If you are looking to start a valet company, it is important if you research and focus on high – growth areas.
It is also important that productivity be measured and rewarded as a team, where all the movements are added up, and the valets get a piece of that total based upon the number of hours they each worked. With this approach, each team member has the same hourly earnings. If you have real professionals doing this work, then you reduce the chances of a lot of problems, like vehicle damage, lost keys, and items stolen from customers’ cars.