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Free Parking - Consumer Surplus vs Producer Surplus


Jakarta is a convenience place to live with many shopping malls at close proximity. There is no place that is not strategic. Maybe in the past you would never live in certain part of Jakarta because lacking of entertainment spot. But now you can live in any side of Jakarta and may found several shopping malls in just few minutes drop.
Yeah, a few minutes drop driving cars and maybe it takes one or maybe more hours to spend your time in the shopping mall. Recently, I have seen two malls offer shoppers with Free parking in limited time up to 2 hours. Is it any good for shoppers? for those who like window shopping or maybe take long shopping list, this sure will make a big smile. Also for an efficient one, it would be an advantage too since they did not have to pay parking lot rent as it used to be in another malls.
So, what’s the catch for the mall it self? Did they lost the opportunity from cashing in their multiple-Decker parking lot? Some made it clearly for the benefit of tenants and the other just smarter than the average mall management. In Mal Kelapa Gadding (MKG) shoppers are eligible to have limited an hour free parking voucher by showing shopping bills where minimal shopping amount is applied. Some shopper will go in hurry to redeem the bills in the specified counter. Some of them just walk straight to the parking lot for not taking the opportunity. But, there is the real smarter than average malls in Jakarta. Mal Taman Aggreko (MTA) offers their shoppers with free parking lot rent up until 2 hours with limitation applied to car only and not including basement parking. It is surely heaven. I rarely used basement parking because I prefer to go to MTA's multiple-Decker parking lot.
If it is not a marketing goofy, so what is it really all about? I’ve been thinking a lot with this to find the answer. What’s the catch for the MTA? Thinking about it , I saw unusual sight in several parking floors. I remember that these floor is always available for parking but recently tagged with VALET Parking. Yes! this is the right answer. I think. MTA still gets surplus from parking lot rent by adding floors to the Valet. The reduction of surplus of non-Valet parking cleverly offset by the increasing surplus from its new lots of Valet services. For in a while MTA still maintain its shoppers and tenants satisfaction level. I would say that this is a Blue Ocean Strategy, isn’t it?

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