Have you noticed an influx of electric vehicles (EVs) on the roads? If so, that’s not a surprise in the slightest.
The EV market is booming, with 20% more EVs expected to be sold in 2024 than the previous year. It’s an excellent opportunity for parking garage operators all over the world.
But how can you make sure that your investment doesn’t end up in a catastrophe?
While the world of EV charging might seem incredibly complex, don’t worry – we’ve got your back.
In a moment, you’ll learn six key strategies to help you generate significant revenue by adding EV charging stations to your parking lot.
The Basics of EV Charging for Parking Operators
First, let’s go over the two main types of EV charging you’ll need to consider if you want to turn your parking lot into a public charging station:
- AC (Alternating Current) Charging: It is a great choice for drivers who are not in a hurry.
- DC (Direct Current) Fast Charging: The superior option for a quick boost during short stops, offering quick power delivery.
1. Transform Your Parking Spot into an EV Charging Station
Your parking spaces can be used for more than just car storage – they can be miniature power stations. Here’s what you need to know:
- DC fast chargers are often the best choice for forward-thinking parking facilities. They offer an unbeatable combination of charging speed and customer appeal.
- They are ideal for drivers who value quick turnaround times.
- By offering DC fast charging, you’re providing a premium service that EV drivers will actively seek out and be willing to pay more for, which is great for your revenue.
While Level 2 AC chargers have their place, DC fast charging is increasingly becoming the preferred option for both operators and EV drivers.
2. Make Your EV-Friendly Parking Facility Easy to Find
If EV drivers can’t locate your charging spots, then all of your efforts will be for naught, and your EV charging station might as well be invisible. Here’s how to get on their radar:
- Try to get your facility listed on popular EV charging apps such as PlugShare or Zapmap. It’s the equivalent of being on Google Maps for EV drivers.
- Use eye-catching signage within your facility.
- Consider implementing real-time availability displays for your charging spots. It’s similar to “Spaces Available” signs but specifically for EV charging.
Remember: the more convenient you make it for EV drivers to find your charging stations, the more likely you are to increase your base of repeat customers. And that’s an excellent thing.
3. Partner with a Reputable Charging Point Operator
Another way to increase your chances of making money with EV charging stations is by partnering with a well-known brand, How can teaming up with an established charging point operator give you an edge?
- Recognized brands often come with a loyal customer base.
- They typically offer solutions that include hardware, software, and customer support.
You don’t have to do everything on your own. You can tap into an established system while maintaining control over your operations.
4. Create a Smart Pricing Strategy for Your Charging Station Business
There are essentially two options when it comes to setting prices for your EV charging station:
- You can charge by the kilowatt-hour, by the minute, or offer a flat rate.
- Consider implementing peak and off-peak pricing. This approach, which is similar to how electricity companies charge differently at various times of day, can help manage demand and help you maximize revenue.
- Don’t forget to account for your electricity costs and demand charges, as they can significantly impact your bottom line.
- Keep an eye on what other nearby charging stations are charging. You want your EV charging station to be competitive but also ensure you’re turning a profit. It’s all about finding the right balance!
5. Explore Subscription Models to Make Additional Revenue
Have you considered offering a subscription service for clients interested in your EV charging station services? Here’s why it’s an option you should consider:
- It provides a steady stream of income, and who doesn’t appreciate predictable revenue?
- Subscriptions can foster customer loyalty. Once drivers subscribe, they’re more likely to repeatedly choose your facility.
- You can offer tiered subscriptions, each with its own set of perks.
6. Master Energy Management of Your Public Charging Station
Managing your energy use is good for the environment, sure, but it’s also beneficial for your bottom line:
- Implement smart charging systems that can adjust charging rates based on overall demand.
- Consider power-sharing between charging stations. This allows you to serve more vehicles without needing to upgrade your entire electrical infrastructure.
- Keep a close eye on demand charges, as they can significantly impact your electricity bill if not managed properly.
How Does Chargepoint Make Money?
ChargePoint business model is all over the place, but in a smart way. They pull in cash mainly through selling charging hardware, subscriptions for cloud services, and maintenance deals.
First off, selling charging hardware is their bread and butter. They sell it to everyone – from individual users to big corporations and even governments.
Oddly enough, they don’t make money from the energy used at the stations, just the hardware. Businesses and government bodies love this because they can cover the initial costs with energy sales revenue.
Then, there are the cloud service subscriptions. These are a big deal for ChargePoint too. Fleet customers and commercial partners get a bunch of useful features like pricing control, access management, waitlists, fleet card integrations, real-time alerts, and deep analytics.
Again, this makes it especially appealing in the commercial and government sectors.
Lastly, they’ve got maintenance services on lock. Think proactive monitoring, fast response times, full parts and electronics coverage, labor warranties, and so on.
Plus, their ChargePoint Assure plans can stretch out to five years with easy monthly payments. This ensures that ChargePoint operators get solid service and reliability.
An Extra Tip: Beyond Just Charging
Charging an EV isn’t as quick as filling up a gas tank (at least not yet). So why not make the most of this opportunity? By creating an exceptional experience for EV drivers, you can transform your parking facility from a simple pit stop into a desirable destination.
Consider offering amenities such as free Wi-Fi, comfortable waiting areas, or even partnerships with nearby businesses. Clear, real-time updates on charging status can also greatly enhance the customer experience.
Satisfied customers are likely to become loyal ones, which means that you should put some effort into making the drivers’ experience with your EV charging station a pleasant one.
Are you ready to transform your parking facility into an EV charging powerhouse? Don’t wait for the future – shape it. Contact our team today for a personalized consultation on how to electrify your parking business. The future is electric, and it’s time to plug in!
Quiz
- What percentage increase in EV sales is expected in 2024 compared to the previous year?
- a) 10%
- b) 15%
- c) 20%
- d) 25%
- Which type of charging is described as “the superior option for a quick boost during short stops”?
- a) AC Charging
- b) DC Fast Charging
- c) Level 1 Charging
- d) Trickle Charging
- What is one benefit of partnering with a reputable charging point operator?
- a) They provide free electricity
- b) They come with a loyal customer base
- c) They guarantee 100% occupancy
- d) They handle all maintenance for free
- Which of the following is a smart pricing strategy for EV charging stations?
- a) Always charge a flat rate
- b) Offer free charging to all customers
- c) Implement peak and off-peak pricing
- d) Charge the same as gasoline prices
Answers:
- c) 20%
- b) DC Fast Charging
- b) They come with a loyal customer base
- c) Implement peak and off-peak pricing