Understanding the Difference Between the Cost of The Gated and Metered Parking Systems
When investors determine whether they will settle for the gated or metered parking system, one of the main things that are on the top of their mind is how much the project will cost. Beside, they will want to know the revenue that will be generated by the parking investment. 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 initial cost of investing in the gated parking is more than the metered parking. 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. It is estimated that the investment cost of the gated system is 25% of the annual income for the first year. The more income you need, the more you will invest the system. 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.
Once you buy the equipment, the other thing is the installation of the system. Gated system is expensive to install than the meter. The system will require infrastructural planning on where the vehicle will be queuing, exiting, and entering the parking lot. After planning, you will pay the installation labor. Installation of the metered parking is very simple and can be executed within a day.
Once the system is installed, maintenance is required to make sure that it last for as long as ten years. The maintenance of the two systems is different. For the gated system, it very simple. However, for the metered parking, there are many different costs that you will incur during the life of the system. This includes the transaction cost, technology support, software license, hosting services, meter warranty, and many others. The metered system has many things to be handled, but it is inexpensive compared with the gated one.
One more expense you will incur is the operating expenses. Metered system is self-service and therefore, you will not be required to hire an operator. You will only be required to hire an operator when you are maintaining the system. For the gated parking, it is more complicated to manage and therefore expensive. To ensure that people are honest, you should make sure that there is enforcement system installed in the metered parking. The enforcement is costly. You will be required to pay the agents who will be enforcing. One more thing you are supposed to invest in the enforcement technology and vehicle.