Can anyone suggest how parking prices are determined at a particular and at a particular time ??
Suppose, at busy times prices increases. What are the factors to be considered to determine that price and how to change it as per time ?
This is just a gist. The parking prices have no base to measure according to me not unless they are completely commercial parking towers or leasing. Considering building costs of construction, 5 crores and fixed costs being say 2.5 crores and variable costs being 2.5 crores, the parking revenue being a crore/annum per crore tickets,
The break even tickets are 1,66,66,667. The more the selling price is, the lesser time to recover costs. The sales is not so high and construction costs are higher than this in reality. So, the companies use cost plus margin principle to increase prices to break even. This is followed because, contractors who lease parking spaces or own parking spaces try to recover the money through variable pricing. Sometime contractors also follow adjusted market assessment method, where, prices are set based on the influence from competitors i.e., similar pricing.
As per busy times, the main factor is depreciation, maintenance, fixed overheads and temporary wages because, the more the use of a building, the more it wears out, then more maintenance occurs and also, more staff are required.
Note: Forgot to mention, since it isn’t not break even above as it isn’t negative, find out the break even price required. It is 5₹ per ticket.
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