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October 8, 2020

Financial

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Costs of The Metered and Gated Parking System

While the investors are deciding whether they will consider gated or metered parking, one of the main things that is on the top of their mind is the cost. Another thing that they will consider is the revenue generated. For the cost, some of the things that will be considered are the expenses of installation, maintenances, and operation. When you compare the metered and gated parking system, the following are the cost facts that you should understand.

The gated parking system is more expensive compared with the metered system. The many things in the gated system such as gate, exit, and entry machine, pay station, a Server station is some of the things that make the gated system more expensive. The approximate capital cost of the gated parking is 25% of revenue generated in the first year. The more the equipment, the more the income you will come. You only require a meter for the other parking system. The capital cost of the metered system is estimated to be 12% of the revenue that you will get in the first year.

The other cost you will incur is installation. Compared with the metered parking; the gated system is more costly. In the gated system, some of the things you will be required to deal with is planning for the exit, entry, queue, and the parking lot. After planning, you will pay the installation labor. On the other hand, the metered system only require a small investment, and the installation will be done within a day.

Regardless of the system that you consider, you should make sure that it is maintained. The way you maintain one system is different from the other one. For the gated system, it very simple. There are numerous things to be handled in the meter parking system. Technological support, a license of the software, meter warranty, cost of the transaction are some of the costs that you will incur in the meter parking system. The metered system has many things to be handled, but it is inexpensive compared with the gated one.

Finally you are going to incur the operation cost. Metered system is self-service and therefore, you will not be required to hire an operator. The only workforce is for the maintenance. However, the gated system is more costly to operate because it is more complicated. To ensure that people are honest, you should make sure that there is enforcement system installed in the metered parking. You shall be required to hire a person to do the enforcement. One more thing you are supposed to invest in the enforcement technology and vehicle.

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