Creating a new revenue stream for forecourt operators by charging customers for parking too long will be one of the blue-sky ideas outlined at next month’s Summit.
Andrew Dodds, a director of Vars Technology, will tell delegates that automatic number plate recognition (ANPR) equipment not only prevents drive-offs, it also can be a tool to generate additional income, while ensuring limited parking spaces do not get clogged up by customers overstaying their welcome.
Dodds, who will be on a panel of six discussing ways that operators can make their operations more profitable, says that with forecourts having only so many parking spaces, if one is occupied for a large portion of the day by a driver who is not spending money that could translate to dozens of lost sales. And he says this could be a particular problem for sites near a busy venue such as a football stadium, where customers are more likely to leave their vehicles parked for longer periods.
Increasingly, operators are managing parking with time limits on site, with Top 50 Indies Rontec, MFG and EG On The Move among those taking steps to ensure enough bays are kept free for customers.
With margins on fuel so tight, Dodds says, retail has become increasingly crucial to keep forecourts profitable, and passing drivers who may not purchase fuel can make up a large proportion of overall trade. To capitalise on this fully, forecourts need to be able to provide paying customers with somewhere to park..
Dodds says that while many companies offer parking management services, they are often not interested in partnering with forecourt operators because the small number of spaces at their sites do not offer them enough revenue. And he adds because it is not practical or cost-effective for forecourt operators to manage the spaces themselves, many are left “feeling like they are at a loose end”.
However, while Vars’ ANPR systems are mainly used to prevent drive-offs, they can also be used to manage parking. “It offers them a new revenue stream and the ability to ensure parking spaces are being used by paying customers,” says Dodds.
Dodds admits that it can be a “tricky balancing act” between encouraging dwell time to use the services on a site, while ensuring that parking spaces are available for paying customers. But he says that the Vars technology can be used to create bespoke parking solutions to suit individual operators.
“Different forecourts have different priorities when it comes to managing parking,” says Dodds. “For operators with an extensive foodservice offering, car washing or EV charging, they may want a longer maximum parking period to allow customers enough time to make full use of available facilities. Others may prefer to keep parking times shorter to ensure a steady turnover of parking spaces and customers.
“We also offer the option of a tablet in-store where customers can enter their car registration for an increased stay time. The system is highly flexible and any parking enforcement claims are reviewed manually by a member of our claims team rather than being automated, which allows us to design a bespoke parking solution that fits the specific needs of a customer and site.”
As an approved operator for the British Parking Association, Vars is obliged to ensure that all processes and signage are fair and transparent, so that it is clear to drivers what the requirements of a site are and how to avoid incurring a fine, adds Dodds. This minimises the risk of alienating customers due to fines that they feel are unfair or not adequately explained, he adds.
Sharma Garages uses ANPR to manage parking as well as to prevent drive-offs across five sites, generating an additional £4,500 in revenue for the forecourt group
Managing director Kumar Sharma says: “Using the Vars system to manage parking has been invaluable in terms of ensuring some of our forecourts with limited parking space have bays available for customers. With the ANPR system already in place to tackle drive-offs, the ability to manage parking is a huge added benefit.
“The system is great at tackling problem parkers that leave their vehicles on our sites for long periods of time, clogging up forecourts and reducing spaces available for customers that may want to take advantage of our services and amenities, rather than just filling up with fuel.”
Others taking part on the ‘Profit’ panel at Summit include Wayne Harrand, retail director at MPK Garages, who will share how the 28-store operator saved £8,000 in energy costs at one of its forecourts. Property expert Steve Rodell will give insights into how to future-proof a site and to make it an attractive proposition when the time comes to sell.
Tom Buckley, general manager of the Pricewatch Group, on a mission to hit thieves head on at the Sussex operator’s eight forecourts, will talk about his biggest wins.
And the thorny issue of making margin on fuel while remaining competitive will be discussed by Gordon Balmer, chief executive of the Petrol Retailers’ Association, and Oliver Blake, managing director Long Riston-based Oasis Services. Blake is well known in the area for being competitive on petrol pricing, thanks to his drive to spread the message on social media community groups.
Forecourt Trader’s Summit is taking place on Tuesday February 25, at The Belfry in Sutton Coldfield. To book your place, visit https://forecourttradersummit.com/live/en/page/home
