Innovation & Technology

Building Loyalty and Business Revenue

Up to this point, we’ve talked about the ‘at the charger’ revenue potential, but we haven’t yet addressed the impact EV charging can have on your overall business. I like to say, “Just because I don’t buy gas anymore, it doesn’t mean I don’t still like potato chips.” The point is, even though I use a different fuel, I am still a hungry consumer.

For C-store owners, this is critical. In 2022, EV sales crossed over the 5% adoption rate threshold, meaning there’s no turning back. As Ernst & Young’s Steve Patton shared, “…this year’s data demonstrates that the U.S. is at a true precipice when it comes to mainstream EV adoption. We can expect to see more EVs, both commercial and consumer, on the road.”

For C-stores with gas pumps, this doesn’t just mean a loss of fueling revenue, it also equates to less sales at retail. Thus, dual pathing is a smart strategy. Not only does this allow them to capture electric fuel sales (which has a higher profit margin), it creates more retail sales opportunities with more charging dwell time.

Research reveals that EV drivers tend to have higher incomes and spending power. In 2022, a popular EV charging network surveyed its users and found charging stations were a clear destination for EV drivers, and they typically spent about $1 a minute shopping while they charged. (The average DCFC charging session is between 30-40 minutes.)

A 2019 study found that EV drivers were also more loyal. 81% of the 700+ EV owners polled agreed and confirmed their spending increased while charging. One respondent said, “We’ve spent way more money eating at restaurants with charging stations than we ever would have spent on gas.” Another reported, “It’s the convenience. I’m there, and I will explore (translation: spend money) at walkable businesses.”

All of this proves the revenue potential of charging surpasses what you would have expected.

The Key to this Success is Ownership

One last consideration. Your success with any of these opportunities is deeply rooted in your control of the stations on your property. While the idea of getting free stations through a third party sounds appealing, it quickly limits how you can unlock and expand your station’s revenue potential­—in other words, they prevent you from filling your pockets.

Third-party providers make their money through what they earn at the station. These earnings often need to cover the cost of electricity, the rent for the land they sit on, and all the station upkeep and maintenance, leaving very little, if any, revenue for you and nearly no room for you to expand that income stream.

Further, to cover these expenses, these providers frequently charge higher than average rates which discourages use, eliminates loyalty, and impedes repeat business – all of which can directly impact your business’ traffic, especially as EV ownership takes off.

Historically, this model has led to unserviced, broken stations, leaving you with little recourse. By owning and operating the stations, you can avoid these challenges, optimize earning potential, and control your property’s customer (or resident) experience. And we all know happy customers tend to be more loyal and spend more. ◆