There are ways to decrease installation costs, such as installing charging stations closer to a power source. When you choose to electrify your dealership with Blink, our team of experts will assess your site to determine the optimal layout for your specific needs.
Electrical Grid Connection
It’s essential to consult with your local utility to understand any costs associated with connecting EV charging stations to the electrical grid. Depending on your utility, you may find that adding charging stations triggers demand charges on peak energy days. Some automotive dealerships have found that installing a battery energy storage (BES) system can help reduce their DCFC costs.
Potential Electricity Upgrades
Especially when installing multiple DCFCs, you may need to upgrade your dealership’s electrical system to handle the additional load. Remember, the National Electrical Code requires dedicated circuits rated at 125% of a Level 2 charger’s maximum load.
Maintenance Costs
Ongoing maintenance is necessary for EV charging stations. Blink offers Blink Care, a preventative maintenance program, and a five-year extended warranty service through EVSTAR. These programs simplify the experience for Host-Owned Blink charging stations, allowing dealerships to focus on their core operations.
Electricity Rates
The cost of electricity is another factor in operating charging stations. However, offering public charging can turn this expense into a revenue stream. The Blink Series 8 Level 2 charger is ideal for public locations due to its flexible payment options, easy installation, and slim design. An 80-amp Level 2 charger can provide faster charging to customers without incurring the demand charges associated with DC fast chargers.
Long-Term Benefits of Dealership Electrification
While electrifying your dealership requires an upfront investment, the long-term benefits can accelerate the return on investment (ROI), especially if some chargers are open for public use. Here are just a few benefits:
Increased Customer Appeal
As the world becomes more eco-conscious, customers like to know the businesses they are patronizing are making efforts to be more environmentally-friendly. In fact, 53% of respondents to a SensorMatic survey survey said they would use a brand or store less frequently if that brand failed to operate in a sustainable way. EV charging stations are a tangible way to display your commitment to sustainability.
But it’s not just about visually displaying a commitment. Preparing for EV sales and adding charging stations for customer use allows your business to meet the growing demand for EVs and improve customer loyalty. As Blink’s Chief Marketing Officer Jenifer Yokley recently said, “My husband wanted to drive my Mach-E to work, so I called my trusted dealership to find the right electric BMW for me.” Offering electric vehicles and EV charging at your dealership encourages your customers to call your dealership when they’re ready to buy their first (or second) electric vehicle.
New Revenue Streams
Installing EV charging stations that the public can use will also provide a new revenue stream to your dealership. If your automakers require your store to install a certain number of charging stations, you can open your Blink charging stations to public users.
When you open charging stations to the public, they will appear on the Blink Mobile App, Blink’s Find a Charger tool, and other popular EV charging locators such as Google Maps and PlugShare.
In good news for dealerships, offering public charging amenities will increase customer traffic, offering your sales team new opportunities to show drivers a new vehicle or provide some other type of service. For example, an EV driver with one EV may be interested in buying or leasing a second family vehicle! In sales, every minute counts, so increasing dwell time can help your sales team meet their goals.
Meeting Sustainability Goals
Aside from appealing to customers, EV charging stations (coupled with a switch to EV fleet vehicles) can help you reach your sustainability goals. This is especially important since many companies’ sustainability goals also include decreasing Scope 3 greenhouse gas emissions, which include emissions associated with any products and services that a company buys, uses and disposes of from suppliers. If your dealership supplies vehicles to any fleets, having charging stations installed will help them with decreasing their Scope 3 emissions.
Being among the first in your region to adopt new sustainable technology can also help to position your company as an environmental leader. In the case of EVs, if there are not many other public charging options near your location, that will also position your dealership as a charging hub within the community.
Blink Business Models
Blink is unique in that we build our own charging stations, develop and maintain our own network software, and even own and operate charging stations. Thanks to Blink’s flexible business models, automotive dealerships can choose the option that best fits a diverse set of budget, ownership, and ongoing maintenance objectives.
Blink Owned
For select high-traffic locations, Blink incurs the charging equipment and installation costs for our turnkey business model. Blink owns and operates the EV charging stations and provides connectivity of the stations to the Blink Network.
Blink Hybrid Owned
With this model, Blink incurs the charging equipment costs while the dealership incurs the installation costs. We own and operate the EV charging stations and provide connectivity to the Blink Network. But, since the host pays for the installation, we share a larger portion of the EV charging revenues after deducting Blink network connectivity and processing fees.
Blink as a Service
This model sees Blink owning and operating the EV charging stations while the host dealership incurs the installation costs and pays Blink a fixed monthly service fee. The host keeps all the EV charging revenue after Blink Network connectivity and processing fees have been deducted.
Host Owned
With a host-owned business model, the host dealership purchases and operates the Blink EV charging station and incurs the installation costs. Blink's role in this model is to provide site recommendations, connectivity to the Blink Network, payment processing, and optional maintenance services. The dealership retains all the EV charging revenues after deducting Blink Network connectivity and processing fees. The Blink Care and extended warranty programs are optional add-ons for Host Owned locations.
Getting Started with Government Incentives
Government incentives, such as the Alternative Fuel Infrastructure Tax Credit, can offset the cost of upgrading to EV charging. This tax credit covers six percent of the cost of EV charging stations, with a maximum credit of $100,000 per station. You may also find additional state or local incentives using Blink’s Commercial Incentives Finder.
Conclusion
As EVs continue to replace conventional ICE vehicles, dealerships that install EV charging stations will position themselves as charging hubs within their communities, demonstrate their commitment to sustainability, meet growing customer demand, and boost customer loyalty. To get started, contact a Blink automotive dealership electrification expert today.
