Raise revenues, increase churn, and get more visitors with Active Pricing

Frogparking’s Active Pricing software module is the smartest way to set rates at your parking lot. 

While establishing a rateboard, many parking managers will have asked themselves questions like: What is a fair price for parking? Who am I competing with? How do I increase my revenues? And what factors are considered when setting the price for parking?

Wherever paid parking exists, owners and operators have grappled with pricing strategies and structures. Traditionally the price for parking has been set by a parking manager, using historical data to forecast what future demand may be. Or maybe it’s set in direct competition to the prices of your competitors.

Striking a balance between effective price control to encourage parking churn, a fair price in the consumer’s mind, maximising revenue for owners and operators, and reflecting local competition is often a complex and time-consuming task for parking managers.

What if there was a better, smarter, and fairer way to set pricing at your parking facility, with technology?

Frogparking’s sensors have been monitoring utilization of parking lots for over 11 years. They are proven on-street, indoors, and in surface lots around the world, in the sunshine, in the rain, and the snow. The data has been used to guide visitors to an available parking space using LED Guidance Lights and dynamic signage. 

Many of Frogparking’s customers have been using its cloud-based analytics software in innovative ways, to transform their businesses using real, live data from their parking asset.

The same can now be applied to assist parking managers to set payment rates for parking using Frogparking’s Active Pricing software module. Using Frogparking’s space-by-space sensors monitoring occupancy rises above a certain threshold, the price is raised accordingly; if it falls again the price is dropped. For the first time owners and operators can base their pricing on utilization, rather than on guesses about how full or empty their facility will be.

Using a combination of our space-by-space sensor hardware and some simple software, Frogparking can achieve this. Here’s 6 reasons why: 

1. You’re in complete control; set your rates depending how full your parking lot is,
2. Respond quickly and realize true value; software lets you be reactive, rather than setting a flat fee for all times. Don’t get caught out with a spike in demand and capture revenue.
3. Set your pricing using live data from today not yesterday; an event on? Charge a fair price based on increased demand. Underutilized? Offer a special price to attract visitors.
4. An effective price control – use the price attract visitors to your parking lot with lower prices during off-peak times of the day, 
5. Pass on the benefit of a low price to your loyal customers, who park during off-peak times when you’re the least busy.
6. Offer the benefits of an easier parking experience with space-by-space parking guidance to an available parking space. 

Case Study

It’s obvious why dynamic pricing is good news for parking owners and operators. They can finally earn the actual value of their parking assets. 

In fact, pre-the outbreak of the COVID-19 pandemic, Frogparking rolled out dynamic pricing at a number of small, off-street sites in downtown Los Angeles. 

The owner immediately saw the benefits. In the first two months of implementation, revenues increased by 113.5% each month, before settling at just over 35% per month. 

Interestingly, business actually picked up since the owner installed the dynamic pricing package. Drivers seem to appreciate knowing that the rates they are being charged are based on the actual value of the space, and not some arbitrary number.

Needless to say, the owner is delighted with the results and his competitors have taken notice. Not only is that owner installing dynamic pricing systems to his other lots, but other parking facilities in the area are also starting to install the system.

Conclusion

Dynamic pricing can provide extraordinary benefits to owners and operators, cities and towns, and even to parkers. It’s a concept whose time has come, and we finally have the technology at our disposal to make it a reality. Start Active Pricing at your parking asset today, talk to Frogparking now.