Romford’s Brewery Car Park and Pricing Theory

Increasing car parking charges is political dynamite for Havering’s councillors. They have to increase charges because of impending bankruptcy but want to avoid alienating voters.

None of the councillors have run multi-site carparks according to their Register of Interest¹ statements. Yet they make commercial decisions worth millions of pounds! This is a recipe for failure.

Both photos taken on the 27th March 2024 mid afternoon

The Brewery car park has massive capacity but is half empty. Modern pricing theory² will solve this challenge. Calibrating price to demand is familiar and used by many companies. This includes the Brewery car park which increases prices on Saturdays. The car park also charges extra for convenience. The surface car park is significantly more expensive than the four levels of the multi-story section.

Increasing demand is a win-win outcome. More usage equals more income without increasing the cost base. What’s not to like?

The Brewery car park is adjacent to a railway station and centrally zoned for retail, commuters and office workers. They are priced out. A more aggressive and sophisticated pricing regime should be introduced. A season ticket with six entries for £35 could be very attractive and an even more keenly priced monthly ticket likewise.

The Brewery Multi-story Car Park is in wonderful location and a commercial flop. Why?

Notes

1 mgConvert2PDF.aspx (havering.gov.uk) This is Mandy Anderson’s, which was chosen because she’s first on the list. Every councillor has a statement.

2 Uber cabs vary prices almost minute by minute depending on demand. As do the airlines and many other companies. For the Brewery carpark see Plan Your Visit – Brewery Romford (thebreweryromford.com) accessed 29^th March 2024 The surface carpark is 50% more expensive than the multi-story for 2 hours.