The Problem with Flat Pricing

Most parking lots charge one rate, all the time. $2-5 per hour whether it's a slow Monday morning or a packed Saturday night. This approach leaves money on the table during peak times and discourages parkers during slower periods.

Dynamic pricing adjusts your rates based on day of week, time of day, or special events. You charge more when demand is high and less when spaces are plentiful. The result: higher overall revenue and better space utilization.

Common Dynamic Pricing Strategies

Peak vs. Off-Peak

• Lunch rush (11 AM to 2 PM): $8/hour
• Morning/evening: $4/hour
• Late night: $2/hour or free

Weekend Premium

• Friday/Saturday nights: $10/hour
• Sunday mornings: $3/hour
• Weekday afternoons: $5/hour

Event-Driven Pricing

• Game days: $20 flat rate
• Conference days: $8/hour
• Regular days: $4/hour

Seasonal Adjustments

• Summer tourist season: Premium rates
• Holiday shopping weeks: 20% increase
• Off-season: Promotional pricing

Day-Specific Rates

• Thursday through Saturday: Higher rates
• Sunday through Wednesday: Standard rates

How to Research Competitive Pricing

Check Nearby Competition

• What do surrounding lots charge during similar times?
• Are there municipal meters or garages nearby?
• What's the going rate for monthly parking?

Start with Market Rates

• Charge 10% to 20% less than enclosed garages for open lots
• Match or slightly undercut street parking rates
• Price below premium locations, above peripheral lots

Test Different Price Points

• Start conservative, increase gradually
• Monitor occupancy at each price level
• Find the sweet spot where you're 70% to 85% full during peak times

Real-World Pricing Examples

Downtown Restaurant Lot

• Thu through Sat dinner (5 to 10 PM): $8/hour
• Daily lunch (11 AM to 2 PM): $4/hour
• All other times: $2/hour

Office Building Near Transit

• Weekday commuter rate (6 AM to 10 AM): $12 flat
• Midday visitors (10 AM to 4 PM): $3/hour
• Evening (after 5 PM): Free

Retail Center

• Weekend shopping hours: $5 first hour, $3 each additional
• Weekday standard: $3/hour flat
• After 8 PM: Free

Event Venue Lot

• Event nights: $25 flat rate
• Non-event weekends: $5/hour
• Weekdays: $3/hour

Setting Your Dynamic Pricing

Identify Your Demand Patterns

• When is your lot completely full?
• When do you have 50% or more empty spaces?
• Are there predictable busy periods?

Create 3 to 4 Pricing Tiers

• Premium: Your busiest 10 to 15 hours per week
• Standard: Normal business hours
• Value: Slower periods you want to encourage
• Free: Dead times when enforcement doesn't make sense

Price Each Tier Appropriately

• Premium: 150% to 200% of standard rate
• Standard: Your baseline competitive rate
• Value: 50% to 75% of standard rate
• Free: $0

What Dynamic Pricing Actually Does

• Increases total revenue: You're not capping earnings during your most profitable hours.
• Improves occupancy: Lower off-peak rates attract parkers who might skip your lot at full price.
• Reduces peak crowding: Higher rates during busy times naturally spread demand.
• Matches value to willingness to pay: Friday night parkers will pay more. Tuesday morning parkers won't.
• Creates pricing flexibility: You can run promotions, adjust for events, respond to competition.

Getting Started

Start simple. Pick your three busiest time blocks per week and charge 50% more during those periods. Monitor the results for a month. Adjust based on how occupancy and revenue respond.

You don't need complex algorithms. You just need rates that reflect when your lot is actually valuable versus when it's half empty.

Your parking spaces are worth more at 7 PM on Saturday than at 10 AM on Tuesday. Price them accordingly.