The document discusses factors to consider when choosing a parking operator. It outlines 4 major parking companies that provide services like hotel parking, valet, commercial parking and more. While their core services are similar, operators differ in accounting practices, auditing, customer service, marketing, revenue enhancement, and cost reduction. The document provides details on these areas and advises choosing an operator based on accounting flexibility, auditing capabilities, strong customer service policies and training, effective marketing tailored to budget and needs, and experience enhancing revenue and reducing expenses. It also notes trends in 2009 like minimum wage increases, potential for increased parking rates and taxes, and importance of good customer service and amenities.
2. Parking Companies
There are over 600 parking facilities
in Northern California and 4 major
parking companies.
All major parking companies provide
the same services i.e. hotel
management, valet, commercial,
residential and mixed use.
4. Accounting
Flexibility to modify statements to meet
ownership requirements.
Ability to create statements at different
times to coincide with on-site property
managements reporting to ownership.
Annual and monthly variance reporting to
include aging report, expense backup,
graph trends in revenue and expenses.
Online bank reconciliation to daily shift
reports.
Cost containment practices.
5. Auditing
Corporate policy
Tracking revenue variances daily and
monthly
Annual review and tracking of tenant lease
allocations
Corporate policy versus regional
implementation
Secret Shopper program
Local auditing support separate from
operations.
Frequency of internal reviews
6. Customer Service
Ensure there is a corporate written policy
Grooming and uniform policies
Frequency of training
Online monthly parking payments
Ability to track service standards
Service training manuals
Training geared towards operational goals
Customer appreciation days (quarterly)
Monthly tenant newsletter
Review of facility standards (cleanliness, safety)
Although most companies have various programs
to enhance service levels rarely are they
implemented.
7. Marketing
Marketing tailored toward approved
budget
Service enhancements
Realistic marketing based on diversity and
current market conditions
Ability to track proposed marketing plan
results on a monthly basis
Out of the box thinking and innovation
Overselling monthly parking
8. Revenue Enhancements
Automation versus manned operation. Does the
cost of automation outweigh the costs of
employee wages and associated expenses
without sacrificing customer service.
Signage placement or improvements.
Quarterly rate survey’s to remain competitive
with the market.
Lighting replacement/upgrades and solar
alternatives to reduce utility expenses.
Be creative with your fee structure and give
operators incentives for increasing the net
income - if an operator can increase your bottom
line by $100,000 they deserve a percentage of
the increase as an incentive. This is found
money for your portfolio.
9. Reducing costs
Payroll taxes (Average 12%)
Workers comp (Average 7%)
Liability Insurance (Average $1.20/stall)
The line items above are profit centers for
most companies versus charging the client
their actual cost. Additionally, these costs
usually decrease from the previous year,
does the operator pass that savings on to
management/ownership.
10. Equipment
There are over 20 revenue control equipment
vendors in the Northwest Region.
Costs vary per operation
There is no “perfect” system, they are all
mechanical in nature and frequently need repair.
Insist on a preventative maintenance contract
and minimum response times to reduce repair
costs after initial warranty.
Some are better than others depending on the
operation, service is paramount.
The parking operator should be familiar with all
the existing and new equipment to be able to
assist on-site management and ownership in
making a decision that best suits the operational
goals.
11. Trends in 2009
Increase in minimum wages in 2009 for union
and non-union employees.
As labor costs increase look for ways to automate
parking operations.
Increase in parking rates.
Increase in commercial office space vacancy.
Possible increase in parking taxes (SF and
Oakland)
Increase in fuel costs that will encourage
transportation alternatives (zipcar, car pooling,
etc..)
Improved tenant/customer service and amenities
will be required to retain customers.
12. Closing Remarks
Parking is not the same as hiring a vendor to perform a specific
project on the building. If you hire a painter, you scope the work,
bid it out and do not pay the vendor until the job is completed per
your specifications.
Parking is an on-going interactive service with three key
components:
- Customer Service aspect to both the property
management/owner and the parker (generally tenants)
- Revenue Collection component (too many people assume
that all companies collect all of the money - big mistake)
- Cost Control component (too many people rely only on this
since it is the easiest to understand and quantify)
Parking has an on-going revenue collection piece (thousands of
small transactions primarily in cash) and tenant relations that
literally can cost you more money in revenue collection and tenant
goodwill than the operators entire monthly reimbursement.
13. Matt Griesheimer
Vice President, Northwest Region
Ace Parking Management, Inc
1700 Montgomery Street, Suite 220
San Francisco, CA 94111
(415) 398-1900
matt_griesheimer@aceparking.com
