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Could the Shatner effect get you cheaper garage parking downtown?
By adamg on Tue, 05/24/2011 - 5:37pm
BostInnovation reports on a startup that looks to apply a Priceline-like model to Boston garages - you fill out an online form stating where you want to park and for how much, then garages compete for your business.
Please stop that snorting now: The idea is that even those garages that charge $35 for a couple hours (like pretty much anything within easy walk of Government Center) might have empty spaces they're willing to fill at lower prices.
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Comments
Won't work.
Garages have a monopoly on space, especially around certain areas.
Like ticket scalpers, they're better off keeping those spaces empty, than filling them and competing to reduce prices.
There's no incentive here for them.
You never know.
If a garage rents out 1000 spaces to people who work in the surrounding area, how many of those spaces are going to be taken every day?
People travel for business, take vacations, etc so maybe there is some room here for garages to make some extra money and also give people a chance to park somewhere?
So if a company pays x amount of dollars a year for 10 spaces, and the garage gives the company 10% back for each spot they want to sell for the day on the market, both the garage and the company can make out.
There's plenty of garages so
There's plenty of garages so a monopoly on space isn't an issue. What may be an issue is relatively fixed demand. Does a parking garage gain enough by bringing in these extra people? And would you entice people into the garages who wouldn't otherwise go there?
That makes no sense
Then how does Priceline exist at all?
Airlines have a monopoly on flying, especially out of all major airports.
Hotels have a monopoly on overnight room rentals...
Rental car companies have a monopoly on lending cars...
You're also wrong about ticket scalpers. Go down to Brookline St an hour before game time and you might pay 2x face. Go down in the 2nd or 3rd inning and you might pay face or just under.
In all of these cases, it's better to get *something* for their time-dependent commodity than wait and get nothing, even if it means head-to-head competition with their neighbors (something scalpers have to deal with too). For every hour/day/whatever that they don't rent a space to you for $15 instead of $35, they made $0 on that space. Why wouldn't they want to at least try to make the $15?
The only disincentive is having someone willing to pay $35 use this service instead of coming directly to them with $35 as usual. I'm guessing that's not most of their clientele. But there *is* a huge untapped market who are willing to park further away, take the T instead of drive, or circle for hours looking for an open meter, just to not spend $35. But they'd probably spend $15 instead...so let them.
Untapped Market
....those who can book the garage space online and know they have a reserved spot when they get to a location vs. having to drive around and find another. maybe not the biggest thing for this in the area, but those driving in from out of town - I can see that catching on.
So... if I... talk like this?
I can save money?
on parking?!
Khaaaan!