
In our world of increasing competition and improvement, examples of monopoly power and lack of improvement really stand out. Take my monthly parking lot...please.
I pay $60 per month to the Central Parking Corporation in Cincinnati, Ohio, a division of Allright Parking, for the right to park my car next to my office. I have done so for nearly four years. At least once per month for those four years, my parking pass has failed to trigger the gate to open. When this happens, I am forced to back my car out into fast-moving traffic and pedestrians, and make my way down the road to another entrance a few hundred yards away. Often people like me will get out of their cars and drag a sign in front of the gate to help fellow parkers know that it is "down" again. This is extremely frustrating, fairly dangerous, and a horrible customer experience. Usually I suck it up and walk into work in a worse mood.
A few days ago I was walking to my car for the ride home after work and noticed a bright red paper on my windshield. It was a note from the Central Parking Corporation advising me that their rates for monthly parking would be increasing by $5 per month. No reason was given for this 10% price increase, and since Central Parking and Hamilton County (which owns the land) collude to control all of the parking in the area I can assume it is simply a grab for more dollars by a monopoly power.
Then I drove to work two days later and got the dreaded gate malfunction again. But this time I decided to act. I grabbed my price increase letter and called to complain. The woman who took my complaint was very nice. She said, "Yeah, someone just called to say the same thing....it happens all the time when it rains." Of course she offered no apology, promise of fixing it, or a discount for next month's fee.
Now I know that Central Parking Corporation often gets calls from frustrated customers, and it knows that its equipment malfunctions when it rains. So, after at least four years of this, why doesn't the company invest in a system that performs in the rain? Or why not put some kind of small canopy over the sensitive signal box to protect it from rain? Wouldn't that extra $5 times hundreds of spots pay for this minor investment that causes major dissatisfaction?
Of course not. There is absolutely ZERO incentive for Central Parking to improve its service. Its customers have no market choice. Lack of challenge means a lack of improvement.
I'm not 100% sure what the answer is. I could see us parkers getting together to file a class action lawsuit against Central Parking, maybe asking for a refund for our hassle during these rainy days that screw up their system. My preferred idea is that Hamilton County, a government organization that represents its citizens, should do more than just take a cut of Central Parking's dollars; rather, it should spend a few hours a year surveying the customers, and fine Central Parking if it fails to meet these very basic customer service issues.
I won't be holding my breath, though.



Not to mention I couldn't park there last Sunday when I had to work on the weekend--even though the lot was completely empty. Both entrances were disabled, Iassume on purpose.
Grrrrrrr.....
Posted by: Michael Wilson | March 20, 2008 at 08:59 PM
Maybe next month, at parking payment time, your debit card or checkbook will "malfunction"? Oops, must be the weather ... Certainly they won't mind?
I'm pleased to read that someone else is annoyed at being asked to swallow a rate hike without being provided with good reasons! The last time I received notice of a rate increase (at the lot across the street from yours), it prompted me to re-assess my options. I was frustrated that there were no solid reasons provided to explain "why" a fare increase was necessary. Other than, the management noticed that other local lots got away with it.
To make a little personal stand, I immediately moved my parking to the lowest common parking denominator - a nearby nightclub lot that charges $20 a month. That's half what I was paying previously. Plus, its appearance is twice as seedy :). Do the math.
The only real differentiator for our local parking options seems to be proximity to the workplace. That, and possibly "illusion of safety" (hence the somewhat bogus swipe cards?). In my mind, at this point in time, the decision comes down to whether you're willing to walk more to pay less.
Personally, I'm willing to "take a hike" (about a block) daily in exchange for parking at about $1 a day.
In the absence of any real customer service (other than the effort needed to cash my checks), I see parking at work as a commodity. And $20/month is simply all I'm willing to pay for the privilege of renting a piece of asphalt for my car to sit on while I'm at work.
Now that I know the "posh lot" is just as terrible about service as any other, it only reinforces my decision to go bargain basement on parking for the time being.
We feel your pain, Bob.
Posted by: KMS | March 24, 2008 at 03:23 PM
Is it just me or does no one else get a rate increase on their heating bill every year? Parking is a business just like any other. To expect that a company not take inflation and the market demand into consideration would be insane when developing prices. After all don't most Americans get a raise every year. I wonder where this money comes from?
Posted by: Jason Jackson | October 20, 2008 at 05:29 PM
Jason,
Why accept "inflation" when the cost to operate a parking lot changes very little? The reason that inflation exists is that the cost of making or doing something goes up. Or, the cost of home heating goes up when the oil or gas supply/demand changes. Sure, there may be a 3% increase in the cost to hire a person to manage the lot, but that doesn't take an extra $5 across every parked car to pay for it.
But this is really beside the point. The price of computers is actually going DOWN each year and the quality is going UP! This is because it is a very competitive market and companies are finding ways to win by reducing costs and improving quality. That's what we need in all sectors of our economy.
Posted by: Bob G | October 21, 2008 at 02:49 PM