Silo Costs

Nowadays, the downtown of Porto is prety busy, so in onder to get a parking place, you need to pay for parking. What a business, where you can rent out 6 square meters by quarters of the hour.

The way the money enters this business is easy, but how can we allocate the the fixed costs of labour to the parking rented?

If we take in consideration the revenue produced to allocate the labour, the short timed parking will get smaller piece of the costs, while montly parking spaces get almost all of the costs.

For instance, with we take into account that the process of checking in and out is about the same for every parking space, the cost should be inputed by the number of parking spaces rented each period. This way the cost is allocated by the number os processes that the staff has to take care of. This seems fine for either the shor timed parking, who require lots of checking in and out, as well as for the monthly renters who require almost no time spent given that they paid by the month.

Another important cost is the building, and it's the most limitation of the business, as when the spaces are empty they are not providing revenues, but they are all occupied,  you have to refuse business.

The cost should be inputed by the hours rented, as the short time parking just occuppy space for a short period, as the monthly renters take one space for the whole period.