Figuring Out Behavior NO.2
The three people I interviewed had the same
response as my last three people I interviewed and all agreed that the parking
in Gainesville is an issue (interviewed all three of them together at the same
time). Furthermore, two of them stated that they would want an alternative
place to park their car and one of them said I wouldn’t pay for it even I really
wanted it. With the two people who said that they wanted an alternative place
to park I asked about how much they would be willing to pay and what type of
structure of payments they would be most comfortable. They said that they would
want a low-cost rent (30-50$) a month with no contract. They then explained to
me that anything over 50$ a month was just simply not financially worth it. I
then countered there offer and said how about 40$ a month with a 12-month
contract and only one of them said that they would consider this option. The
one person who said that it was not worth it at all said they would rather have
a small parking lot that charges anywhere from 5-8$ a night for when they
really need it.
I found that these three were extremely honest
and have helped me really think if this project would even be profitable. Although
the risk would still be minimal because this project is real estate and
purchasing land is a relatively a safe investment, I don’t see how that this
project can bring in a lot of cash. For instance, say that I get a piece of
land that can hold 100 cars and charge 40$ for 12 months, that will equal
revenue of 48,000$. While this is still a lot of cash I must also think of
other payments that I must have such as mortgage payments and security payments.
Overall I think the idea will still be profitable, just not as profitable I thought
originally.
I love how you actually thought through the numbers and logistics for your opportunity. You speak about getting the land and how much you could generate in revenue with this opportunity. I think that is a great step toward thinking like an entrepreneur. Everything seems very practical and as if you can really see this coming to life. Great job in this post Conner!
ReplyDeleteHi Connor,
ReplyDeleteI think you made a great point in your post. Payment structure is the key to success when developing an issue to parking issues in the Gainesville area. It is great that you calculated revenue because it gives everyone a chance to truly see the potential of your business idea.
Conner,
ReplyDeleteAgain, I still think developing more parking lot in Gainesville is a good idea. It is necessary for city like Gainesville to build more parking lot because there are so many stydents in this city, and the traffic in Gainesville is getting worse and worse in recent years. So many people can't find the paring area when activities like football game and some other events hold. I also like you give the data on the possible revenue of the opportunity. Good job!