Can EV Charging Stations Be Profitable?
- July 28, 2021
“Green” is good, right? With that in mind, many business and property owners naturally think that the main benefit of installing electric vehicle (EV) charging stations are the benefits for the planet that come with encouraging greater use of EVs.
Certainly, there are tremendous benefits to the planet—and it’s hard to put a price tag on feeling good about the contribution you are making to the well-being of Mother Earth and all her inhabitants, not just now but for future generations.
What you might not have realized, however, is the potential profitability of EV charging stations. That’s right: EV charging stations can be tremendous profit centers for your business or property!
Let’s take a quick look at four different ways: (1) Increasing dwell time. (2) Attracting loyal, high-quality customers. (3) Enhancing your reputation. (4) Charging for the service.
(1) Increasing dwell time. Every time an EV driver stops to charge, that presents you with a cross-selling opportunity regarding add-on products and services. It doesn’t matter whether the person is a rideshare driver recharging during a lunch break or a soccer mom topping off her battery while obtaining snacks for the team. If you install charging stations, EV drivers of all kinds will spend more time at your
location. This charging can take anywhere from 20 minutes to six hours, depending on the circumstances.
(2) Attracting loyal, high-quality customers. One recent study found that U.S. drivers who own or lease EVs have national median household incomes twice as high as others. As a general rule, that translates into twice as much discretionary income to spend at your place of business. With median household incomes of $150,000 and more, not only do they have more discretionary income to spend at your location but each time they visit, they also tend to purchase higher-end goods and services.
(3) Enhancing your reputation. Surveys indicate that approximately half of all U.S. EV drivers feel insecure about locating a suitable EV charging station when they need one, for obvious reasons: In the case of drivers of all-electric vehicles, the prospect of running out of power is like running out of gas.
Popular navigation sites (Google Maps being one prime example)—as well as dedicated charging apps, like PlugShare—will literally put you on the map with drivers searching for a convenient EV charging station. Associating your brand with the ability to power up when needed will dramatically enhance your reputation.
(4) Charging for the service. Additional income can be generated by charging fees, which your customers will only be more than happy to pay, based on a variety of business models. Pricing structure depends on objectives but what’s important to keep in mind is that you have the ability to continually test different strategies, to see which works best for you and which you are happiest with. You can set your own fees and adjust them at any time. Flat hourly rate and amount of energy used are two common models.
National EV—with website at NationalEV.com—is a leader in the industry, with attractive turnkey solutions that consultants at National EV can patiently explain to you after learning about your needs and objectives. Each day that goes by without having installed the EV chargers you could be offering is a day that you are losing all the opportunities described above. So why wait? Contact National EV to request a quote or consultation today.