Downtown Surface Lot
The Challenge
Parking lot downtown managed by a national operator. The Owner was happy with the operation but eventually decided to give Velocity parking a shot on his smallest lot (16 spaces). The lot was facing several challenges:
- Outdated pay stations requiring significant maintenance
- Inefficient manual enforcement leading to revenue leakage
- High operational costs cutting into profits
- Owner bearing the burden of insurance and equipment costs
Our Solution
Velocity got to work replacing the outdated pay stations and inefficient manual enforcement with our scan-to-pay systems and LPR technology. Our comprehensive approach included:
Technology Implementation
We installed our proprietary scan-to-pay system and LPR (License Plate Recognition) technology to automate payment collection and enforcement.
Marketing Strategy
Our team actively marketed the location to increase visibility and drive more traffic to the parking lot.
Maintenance & Cleanliness
We deployed staff to ensure the lot stayed clean and well-maintained, enhancing the customer experience.
Cost Coverage
Velocity covered all costs including insurance and equipment, working on a revenue share model that eliminated financial risk for the owner.
The owner had previously been on the hook for insurance as well as the equipment cost for the location. Velocity working on a revenue share, covered all costs, allowing for the owner to see an immediate increase in net revenue.
The Results
Performance Metrics:
- Previous 12-month gross revenue: $64,509 ($5,375 average per month)
- Velocity parking first 12-month revenue: $91,004 ($7,583 per month average)
- Revenue increase: 45% over the previous operator
Key Benefits
The implementation of Velocity's parking management solution delivered several key benefits:
- Increased Revenue: A 45% increase in gross revenue compared to the previous operator.
- Reduced Costs: The owner no longer had to pay for insurance, equipment, or maintenance.
- Improved Customer Experience: Modern payment options and a cleaner, well-maintained facility.
- Enhanced Enforcement: LPR technology ensured proper payment and reduced revenue leakage.
- Zero Financial Risk: The revenue share model ensured the owner was profitable from day one.
Conclusion
This case study demonstrates how Velocity Parking's innovative approach to parking management can transform even small parking assets into more profitable operations. By combining technology, marketing, and hands-on management, we were able to deliver a 45% increase in revenue while eliminating costs and financial risk for the owner.
Our success with this 16-space downtown surface lot showcases the scalability of our solution and its effectiveness regardless of lot size. The owner now enjoys higher monthly revenue without the burden of operational costs, insurance, or equipment maintenance.
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