Parking management with low-cost infrastructure-less solutions
The parking industry is always looking to cut costs. Since there’s only so much wiggle room on pricing, lowering expenditures is key to the industry’s profitability.
From the perspective of consumers, convenience is king. They just want to be able to park their cars at a good location without a lot of fuss. For parking providers, then, the question is this: How do we provide consumers with a great parking experience, reasonably priced and at a low cost?
Here are two key principles parking providers need to keep in mind as we think about the future of the industry:
1. Prioritize infrastructure-less solutions.
When trying to optimize the parking industry, it’s tempting to invest in flashy infrastructure. Fancy parking meters and gates, for example, have become standard fare in parking lots. The problem with these solutions is that they are expensive and become outdated very quickly. When considering the cost/benefit analysis, parking lot operators must also factor in maintenance costs. That high-tech meter system isn’t just going to repair itself every few months.
Moreover, these systems rarely provide significant value to consumers. Sure, it’s better to pay for parking using a touch screen system. But that same system doesn’t really address the core issues facing consumers. Finding good parking spots remains incredibly onerous, regardless of the system that drivers use to pay for it once they’ve finally secured a spot.
Instead of chasing the latest in expensive infrastructure, parking providers should re-configure their vision to include infrastructure-less, digital solutions. One major advantage of infrastructure-less solutions is that they’re less expensive to build and maintain. But, they also tend to be more consumer-friendly. Today’s drivers want to find a parking spot and pay for it without having to finagle with machines and credit cards. An infrastructure-less system that relies on in-vehicle sensors and automatic payments can provide a frictionless experience.
2. Remember that parking is about managing vehicles efficiently, not limiting spaces.
The parking industry has often perceived itself as a real estate business of sorts. From this perspective, the purpose of the parking industry is simply to rent spaces to drivers.
We need to take a broader view of parking and what the industry can do for consumers. The parking experience doesn’t begin the moment a driver pulls into a lot or on-street parking space. To the contrary, finding a parking spot in the first place is probably the most important part of the experience for most drivers. Yet right now, the industry does very little to assist in this part of the process.
To address this successfully, the industry needs to rethink its model. We’re not simply renting spaces to drivers for a few hours. We are enabling them to enjoy their mobility by facilitating a smooth experience from the moment they leave the front door. In short, we need to be all about helping drivers to manage their vehicles effectively.
If the parking industry can embrace these principles, we can cut costs while also providing consumers with a superior experience. This will be key to the industry’s future success.
