NOZY PARKER – FOUR CORE PILLARS OF PARKING REVENUE MANAGEMENT
Have you ever sat around a dinner table and had a conversation about parking? What you quickly realise, is that parking is definitely a grudge purchase. As the conversation progresses you may even discover that certain people will go out of their way to “get out of paying” with a sense of victory at beating the system. When people talk about parking, you will also realise that there is a level of satisfaction, even celebration, around non-payment.
That leaves property owners and managers in a constant search for new ways to better manage our parking as a source of non-GLA income. Here are what we consider to be the four core pillars to parking revenue management that could be optimised through a strategic digital integration and solution strategy:
Transactions are parking tickets that are to be paid for and represent the currency with which you trade. This forms the backbone of your parking environment and payment ecosystem. We prefer to refer to transactions and not the word tickets, a simple difference in wording but significant in consequence. Tickets are inventory but once dispensed become transactions for which payment is expected.
How are you tracking your transaction? Do you have a clear, real-time view of missing transactions? Is there intelligence around exceptional transactions? Metrics like manual boom openings and missing transactions form the foundation of your report.
As an asset manager, you need to understand the activity in your car park holistically, ultimately drilling down to how many entries resulted in paid transactions. From there you can begin to get a view of what revenue you can expect and where the risks lie. You also want to understand your Rand per parker metric, and how your parking sales relate to revenue generated.
You need to be able to reconcile your revenue with the number of parking sales, considering that pay stations these days take cash and accept credit cards, and don’t forget the cashier station, pre-validated tickets and parking vouchers. The parking manager needs to reconcile all parking transactions with the number of paid tickets. A paid parking analysis will give you insights into dwell time and give you data to work off when completing your next pricing review.
How do you reconcile your revenue, from your point of sale, or the pay station, taking into account change replenishment?
Properly reconciling your revenue also speaks to keeping tabs on the hopper movement within the pay station, which will give you stats into whether the parking operator is managing the change replenishment correctly or not. How are they dealing with boom openings, knowing that each boom opening signals an issue and could be a potential complaint?
You should have a clear view of your float in the devices, which should stay constant.
Banking deals with the movement of cash from the point of sale to the bank statement. Do you have a clear idea of what float you need to sustain the parking operation? Does your bank statement reconcile with your revenue and all the transactions processed at the point of sale?
Do you have an overview of what your credit card sales, voucher sales, single-exit sales are at any point? Anything that generates revenue needs to be calculated and reported on. Mostly in the parking industry we are counting yesterday’s cash, and banking it tomorrow. How can we reduce these lead times to allow for less human error and less shrinkage?
4. MONTHLY PARKERS
You need to pay special attention to the tenant debtors as they form a major portion of parking revenue in certain facilities. Do you know how many active cards are on the system? When was the last time you performed an age analysis (flawed as they are) on them and have you recently cleaned up your tenant database?
Nozy Parker’s Revenue Management Application integrates with the parking technology being utilized at each site to provide property owners with a Revenue report independent to the information supplied by the Parking Operator and Technology Supplier - providing a protected source of truth into the revenue compliance at each site in real-time. It allows you to
properly track your transactions, reconcile all your revenue, understand what your operators are banking and drill down into the monthly parkers. Performance can be evaluated at any point where exceptions are highlighted in the system, rather than the traditional process of addressing performance issues after the fact by means of manually created reports only available a week or more after the end of each month.
Utilising these insights and real-time data you will be well on your way to affecting better revenue from your non-GLA income streams, with a view to better profitability and customer engagement.