Parking Lot Entrepreneurs: How to Run a Profitable Parking Garage
Dec 03, 2020 01:10
Owning and operating parking garages are excellent business ventures for entrepreneurs due to the minimal involvement required and amazing profit potential.
If you’re interested in opening a parking garage, learn helpful tips for running a profitable business.
Analyze the Market
Guarantee you operate an advantageous parking garage by analyzing the market.
A target market for a parking garage is generally customers who use the space to conveniently park near something else. Determine the specific market by identifying the type of parking garage you intend to open, including general, residential, commercial, healthcare, or university lots. Recognizing the intended customers for your parking garage assists in choosing profitable decisions regarding location and marketing.
Evaluating local competition is also important for understanding your parking garage’s market. Competitors refer to other parking garages near yours offering similar services and prices. Learning about your competition is essential to building a business by selecting competitive prices and services.
Examine the target market and local competition for your parking garage to begin your parking business successfully.
Understand the finances involved in owning a parking garage. Primarily, calculate the opening and operating costs as well as the potential profits.
Building costs for a parking garage varies significantly depending on the location, size, and type. A parking garage costs anywhere between $7,500,000 to $12,000,000 to build, resulting in people paying an average of $9,750,000 for a 150,000 sq. ft. multi-level parking garage above ground. Expenses involved include materials, labor, and equipment.
After you build a parking garage, ongoing expenses occur, such as rent or mortgage payments, wages, utilities, insurance, and supplies. A major component of regular expenses is maintenance, which involves repairing cracks, repaving, line marking, and much more. A 150,000 sq. ft. parking garage containing about 375 to 500 cars spends approximately $500 per space every year on operation and maintenance costs.
The price you charge at a parking garage depends on the demand and local competition, ranging from hourly rates of $1 in rural locations to $60 in metropolitan areas. Based on the number of parking spaces in your parking garage, potential revenue earnings range between $15,000 to $2,000,000 per year.
Pick a Quality Location
Location is important for every business, especially parking garages. Pick a quality spot for your parking garage to guarantee success. Obviously, location is dependent on availability; however, your chosen location does determine the price you’ll charge, the amount of traffic you’ll receive, and the level of competition, so thoroughly research potential choices for your parking garage.
Recruit Parking Management Services
Elevate your parking garage by recruiting parking management services.
A parking management service offers innovative solutions for operating your business effectively. From implementing automation technology to providing exceptional guest experiences, a management service handles every aspect of your parking garage, substantially increasing profitability.
A brand signifies the purpose and mission of your business to prospective customers. Develop a brand for your parking garage by choosing colors and fonts to create a logo that matches the overall tone of your business. Broadcast your brand across the entirety of your business to increase customer recognition and loyalty.
Establish a Strong Online Presence
Marketing your business online is incredibly important because the majority of people discover new businesses and trends by searching online. Establish a strong online presence by building a website containing important information regarding prices, services, and contact details for your parking garage. Additionally, promote your parking garage on social media by creating communities of potential customers and becoming an active participant.
Discover Methods to Retain Customers
Discover marketing methods for earning and retaining customers, including:
●Offering discounts to new customers
●Establishing loyalty programs for returning clients
●Using parking lot attendants to signal traffic towards your garage
●Setting up local advertisements displaying your logo and location
Guarantee your parking garage succeeds by regularly considering ideas for encouraging customers to come back.
If you’re a parking lot entrepreneur, follow these helpful tips for running a profitable parking garage.
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