March 10-13, 2013 Chicago, IL

Transcription

1 March 10-13, 2013 Chicago, IL

2 RATES! by

3 Reviewing Your Rate Structure Determining your rates for Valet, Self Park, Garages, or Lots

4 PARKING! Q: What is it that a parking facility sells? A: SPACE Q: How is that space sold? A: By the minute

5 Setting the Rate What determines the rate? Location, Location, Location Lot, Garage, Deck What is the purpose of your facility? As an amenity to your core business A non-profit group/agency Municipal/Parking Authority Long Term Storage Public/Private For Profit Operation

6 Setting the Rate What determines the rate? Commercial building Retail - Shopping Center/Mall/Plaza Events - Sporting, Concerts, Conference Centers Educational - University, Trade, Academy Park N Ride - Train, Bus, Highway Staging Areas Off Airport Airports Hospitals Residential

7 What other factors are there? What, and Who are the competition? What are the off site generators? What is the Customer s final destination? What is the vacancy factor of the facility? What is the Monthly/Transient composition? What will the Market accept???

8 What Does a Space Cost? Cost of Land Cost to Build Cost to Operate Cost of Real Estate Taxes Cost of Utilities Cost of Sinking Fund

9 Two Garages Same City 21 Employees 1,208 Spaces Self Park $80.36 per month per space Operating cost only, not including utilities 10 Employees 2,200 Spaces Self Park $35.27 per month per space Operating cost only, not including utilities

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13 Rates 10 Hrs Garden Special Monthly Pin $27.88 $31.25 $36.32 $ $28.72 $35.48 $38.01 $ $32.10 $40.00 $40.54 $ $21.10 $24.47 $30.38 $ $14.35 $14.35 $14.35 $ $28.72 $28.72 $28.72 $ $20.25 $20.25 $20.25 $

14 What other factors are there? If you are at 100% of capacity, you have the wrong rates! If you have a monthly waiting list, you have the wrong rates! Attracting the repeat Customer

15 What is a Grace Period? Turn Around Grace Continuous Perimeter Exit from POF or Central Registers

16 Grace Period Why? Hold over from mechanical systems of independent in and out clocks How do You use them? Customer Service Wrong Location Rates Valet Space consideration Manager Override Something for nothing

17 City and County of San Francisco Office of the Controller City Services Auditor $245,667 was not collected or remitted because of a rolling (or continuous) grace period used in the garage. This grace period allowed parkers not to pay for the next time increment (e.g., hour) of their garage stay until seven minutes after the previous increment ended.

18 Grace Periods Turn Around Typically five (5) minutes or less. Can the customer actually park, accomplish a task, return and exit in the grace time? If so, the Grace is too long. Can the customer use the parking property as a short cut around street traffic? Ticket Cost System wear/tear Line queuing

19 Turn Around Grace The first mm are free, assuming a 15 minute turnaround grace period, $1.00 every 20 minutes, $4.00 max. Up to 15 minutes $0.00 Up to 20 minutes $1.00 (Every ticket from 16 to 20 min) Up to 40 minutes $2.00 (Every ticket from 21 to 40 min) Up to 60 minutes $3.00 (Every ticket from 41 to 60 min) Up to Maximum $4.00 (Every ticket over 1hour)

20 Continuous. Deduct mm from each rate increment, i.e., assuming a 15-minute turnaround grace period Up to 15 minutes $0.00 Up to 34 minutes $1.00 (Every ticket from 16 to 35 min) Up to 54 minutes $2.00 (Every ticket from 36 to 55 min) Up to 74 minutes $3.00 (Every ticket from 56 to 75 min) Up to Maximum $4.00 (Every ticket over 76 minutes)

21 Grace Period Continuous Never! (my opinion and recommendation) 6 minutes on a 30 minute cycle = 20%, 5 min=16.67% 5min/ 20 min = 25% 5 min/15 min =33% Time Units Grace ,577 19, ,352 14, ,119 9, ,977 5, ,528 4, ,354 3, ,739 1, ,114 2, ,919 1,184 Total 311,679 62,336 Value $3.00 $187,007

22 Grace Period POF Grace dependent upon rate increments Grace dependent upon walking distance from POF to Vehicle and time to drive to exit Example 30 minute rate increments Payment at xx:01 You have 29 minutes remaining to end of paid rate increment; Payment at xx:29/59 You have 1 minute remaining to the end of the paid increment, thus the grace needs to be sufficient to permit you to walk back to your vehicle and drive to the exit.

23 What does this mean in $$ and Assume a 15-minute Continuous grace period Rates increment every 15 minutes 100% of every ticket less than maximum rate Rates increments every 20 minutes 75% of every ticket less than maximum rate Rates increment every 30 minutes 50% of every ticket less than maximum rate Rates increment every hour 25% of every ticket less than maximum rate

24 Grace Period Most common POF Grace times 10 minutes 15 minutes Average -12 minutes Self Park 15 minutes Valet Park

25 Grace Period Monthly Parking 4am the morning of the 1 st. At 4:01am, the access card is locked out! Select accounts can run a predetermined A/R balance. Lockout is the 1 st of the actual month when the predetermined A/R balance is exceeded

26 Catch Up a Minute Ticket rate increment segments are different on the West Coast than the East Coast. Typically, the Right Coast increments 1Hr, 2Hrs, 3Hrs, 10Hrs, Max The Left Coast increments in 10, 12, or 15 minute segments to a Max

27 Monthly Vacancy Factor Office Buildings 15-20% Hospitals 35-40% Park N Rides 40-65% Retail 30-35%

28 Setting the Monthly Rate Daily Max is $ days X 47 weeks = $1, (8*5*47) Holidays, Vacation, Sick Days = 25 days/5 weeks $1, months = $ $ = the parking value based on the daily rate How do you determine the discount? a 50% Discount a 60% Discount a 68% Discount

29 Rates The Car Wash Monthly Rate = $450.00, 6 accounts Monthly with Service = $470.00, 388 accounts (1,552 washes/month) Service equals one car wash every week Assume 4 car washes per month Charge for Car Wash Service = $5.00 Cost to provide Car Wash Service = $10.00 Loss of $7,760/month or $93,120 annually

30 Pre Paid Validation Stamps Cash Value or Time Value????? 1/2 hour = $1.50, All Day Max is $6.00 and is reached at 1 hour 31 minutes Customer parks 8:0 a.m. - 5:30 p.m. (9.5 hours) As Cash Value - 4 stamps are required As Time Value - 19 stamps are required

31 Time vs Cash 600 Stamps = 150 All Day Cash 600 Stamps = 31 All Day Time The previous 119 All Day Tickets that were free tickets now generate $714 monthly Annualized, this =$8,568.00

32 Does it Work? 10 minute grace 10 minutes = $15.00 hour 12 hours =$ Spaces 1,450 cars daily average Turn over = 25.4 times per space 15% are pre paid validations 11% paid in cash 74% are free Average Ticket $6.00

33 Does it Work? Each 1 hour stamp is worth $10.00 Parking Fee was $62.50 for 4 hours 19 minutes Paid using $80.00 worth of Validations, no change returned.

34 Does it Work? Each All Day stamp is worth $20.00 Parking Fee was $ for 9 hours Paid using $ worth of Validations, no change returned

35 THANK YOU