Tuesday, August 21, 2012

Red Light Cameras, Oh, That's How They Make Money

Dear Friends and Family,

Traffic cameras. I used to wonder how they were smart enough to do what they do, especially after I got a ticket for a marginal call on a no turn on red when pedestrians are present situation.

How many sensors would you need to be able to be smart enough to do that?

Turns out none.

Here's what I think is really going on.

The camera doesn't try to catch you in the act. That's just too hard.

The camera blindly records the whole red light, every red light.

Then, behind the scenes, the company pays some warm body some nominal amount to watch the red lights. It doesn't have to be here. You can outsource it. The warm bodies can screen for anything close to an infraction. Then, you can have a second level filter, who makes marginally more, make to final call on who gets a ticket.

Old school math: Let's assume in an eight hour period, two people merit a ticket. Assume $50 a ticket, that'd be $100 in revenue. But, the cost of the police officer monitoring the light would be more than $100 in cost for the same eight hours. Not worth their while.

New school math: Let's assume the same two infractions at $50 a ticket. No police officer. Assuming red lights and green lights are equal in duration, and that you can watch them at 30% faster than real time. One person can watch eight hours of time in just under three hours. If you pay that person $10 an hour and pay the person who makes the final call $15 an hour, you can make money in this scenario. Spend $30-35 and make $100 in revenue, and you have $65-70 to spare which more than covers the cost of a blind camera and the equipment which scales. Pay $6 an hour and they you can really rock and roll.

No technology. Just cheap labor.

At least that's my latest hypothesis.


Cheers!
mouse

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