Timmo! wrote:
Business owners (and I are one), have to look at the services demanded by customers and balance it with the cost of providing said service. In most cases (but not always) the 80/20 rule applies to small business commerce: 20% of your revenue comes from 80% of your customers; conversely 80% of your revenue comes from 20% of your customers.
Assumptions:
Campgrounds have a 10% profit margin ($100 revenue - $90 expenses = $10 profit)
Commercial grade level 2 charging station fully installed costs $13,000
Annual costs to maintain charging station is $300
A campground will need earn $130,000 of revenue to pay for the purchase and installation for their charging station. ($130k X 10% profit = $13,000).
Each year the campground will need $3,000 of additional revenue to pay for annual operation costs ($3k X 10% profit = $300).
So, is the campground facility better served if owners allocate $13k of profits to patronize 1% of their customers (percentage of EV vehicles on the road) or should the campground owners allocate $13k of profits to service 99% of their customers that provide most of the revenue?
And remember, campgrounds were not deemed "essential business" and were slammed by COVID-19 closures last year, unlike the retail stores that remained open and have lots of dough.
But as a business owner you understand you also need to guess what demand will be in future. Others can witch about it all they want, but the percentage of EVs on the road, and by extension, in the campground will grow. But maybe not in your CG.
