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Interview Question

Internship Interview

How do you raise the profitability of parking lots in a

  city?
Answer

Interview Answer

1 Answer

0

You can raise profitability by either increasing revenue or decreasing costs:

To increase revenue you could:
- charge higher fees (though this may hurt you more than benefit you if all of your potential customers go to other parking lots)
- add more parking spaces by building a parking garage (though you need to ensure demand is sufficient so that you can fill all of the extra parking spaces).
- Employ a person/tow-truck to tow away unauthorized vehicles.
- Turn the parking lot into a skyrise, and have the bottom x number of floors remain a parking lot so you can keep your business. The upper deck floors could be a grocery store, apartments, or business offices. Either, additional people occupying the building will create an increase in demand for your parking.

To decrease costs you could:
- Install electronic ticket payment meters instead of having an attendant on duty.
- Add a roof to the parking lot so you do not need to pay for snow removal in the winter time.

Bubba on Jul 9, 2014

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