6 Ways improved parking equipment increases profits

It’s not surprising to see more and more industries implementing new parking systems.

You may think it’s only about offering more convenience to customers. But the motivation comes from more than this.

Industries are always on the lookout for ways to save costs and generate revenue.

Modern parking systems are ideal for both these goals.

This is why it’s essential for an industry to constantly improve on its parking equipment. Here are six reasons industries simply can’t ignore.

  1. Reduction in Operating and Maintenance Costs

Improved parking equipment reduces operating and maintenance costs. The equipment works in isolation rather than needing staff.

  • Hardly any clean up is needed on the machines.
  • Modern technology enables more durable machines. They’re well designed and implemented. While maintenance is occasionally required it’s not a huge expense.
  • Less special provisions—such as ventilation—are necessary to keep the equipment operating.

Modern equipment even improves accuracy. This means car park owners don’t lose out on income because of mathematical mistakes. With no staff operating outdated payment booths there’s no chance of human errors occurring.

  1. Optimizing Property for Higher Profits

Why wouldn’t industries make profits from better property use? The beauty of improved parking systems is more can be done than before with the same piece of land.

Parking equipment these days is generally more compact than before. They can be placed at convenient places such as the exits of malls. They don’t take up space of parking bays anymore.

The compact nature allows developers to plan the parking layout more dynamically:

  • A symmetrical parking layout that allows better traffic flow.
  • Additional floors for more parking bays.

This leads to greater efficiency and other cost savings.

How far does this efficiency stretch?

State of the art automated parking systems enable optimum space usage.

Some parking lots have robots parking the cars. No space is wasted to allow for car doors opening. This means more cars can use the parking area which means more parking payments.

These systems are ideal for entities such as airports but also small properties. Now you can house more cars.

  1. Tax Advantages

The parking lot and its structures are considered to be building improvements. Similar to other buildings they take long to depreciate in value.

Many industries will enjoy the tax advantages improved parking equipment offers. These tax advantages make its way in the form of accelerated tax depreciation.

This method makes the asset—parking equipment—lose its book value at a faster rate than the traditional straight line method.

Generally the value of the parking equipment and structures depreciate in approximately 10 years. By making use of accelerated tax depreciation they depreciate within seven years.

The advantages are lower tax payments that lead to greater savings.

These costs savings can be directed to maintaining or replacing the equipment. In this way a business can continue improving its equipment every few years to take advantage of new technological developments.

  1. New Revenue Streams

Technology centered on improved parking equipment also increases profits. Smart parking contributes to the new revenue streams.

Smart parking takes theform of an app and sensors installed in each parking bay. This equipment is highly useful in locations that are congested and have many parking bays:

  • Malls
  • Hospitals
  • Airports

Each sensor is linked to the app. If no car is above the sensor it presents itself as an available parking bay on the app. The app then informs users of availability and the direction to drive.

Technology provides for any eventuality. A sensor will only connect with the first app it detects. No two people will be directed to the same parking space.

Consumers respond well to efficient systems. This dynamic setup will draw more drivers to use the specific car park which results in more revenue. Revenue can also stream from the download of the app.

  1. Decrease in Liability Costs

Parking equipment reduces liability costs which equate to more savings for developers. This is possible because safety goes hand in hand with modern equipment:

  • Better traffic flow reduces the risks of accidents.
  • Security guards can spot violations and suspicious activities by viewing real time parking footage through CCTV cameras.
  • License plate recognition cameras detect and print number plate details on entry tickets. If the car is stolen and thieves use different tickets upon exiting the system will alert the authorities.

There will be less chance of drivers suing car park owners for damages.

Less criminal activity also means car park owners have less expenses regarding repairs after vandalism.

  1. Controlled Revenue

When revenue from parking fees isn’t controlled well companies are bound to experience loss of income.

A huge problem regarding this relates to employees.

The probability of having dishonest employees mean there’s always a risk when staff members operate boom gates. When drivers pay fees employees can take some of it for themselves. Alternatively employees can allow unauthorized people onto the premises without paying.

This is less likely with a computerized system where no one can cheat the equipment.

Investing in an improved parking equipment makes sense. The cost of the equipment will be covered by the guaranteed future income.

Improved parking equipment also incorporates modern—secure—payment options such as:

  • Credit cards
  • Smartphones

This usually attracts more drivers who don’t want to use outdated methods such as cash.

The original motivation of increased profits also benefits customers eventually. This means an improved parking system kick starts a process that will keep on benefiting the car park owner for a long time. When customers are satisfied they continue supporting service providers. A modern car park benefits all involved.


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