Effective Water Business

Every year the demand for drinking water increases. Therefore, business on water is relevant and promising.

We will consider how to make money from water: from the simplest ideas to large-scale production.

It is impossible to consume tap water in many regions. This problem is especially acute for residents of large cities, where drinking running water is bad for health.  Filters don’t solve the problem as they only purify water, but don’t make it useful for the human body. The only way out is bottled water from natural sources, artesian wells.

This is why people have long stopped drinking untreated running water, having felt the difference. Ordering water has become a common thing in almost all offices and businesses, and many families order water at home. After all, a person’s health depends on the quality of water, and one does not skimp on health. The cost of bottled water is reasonable, and this product is in high demand. So the business of water is a relevant and profitable business.

Every year the need for clean drinking water is increasing and the number of consumers is increasing. Every third family in the big city has a cooler with bottled water in the apartment. According to specialists’ calculations, only in Moscow, about 65 million bottled water is sold annually.

RBC experts predict that the annual growth of the drinking water market will be about 15-16%. At present, bottled water accounts for 2/3 of the market of non-alcoholic beverages. The service segment of water delivery in 5 and 19 liters bottles to offices and private apartments is developing at a rapid pace. This market segment is growing 20-30% a year.

It is expected that the market will slow down its growth only by 2020, but it will require 3-4 times more water production capacity. Therefore, there is still time to occupy a niche and enter the market.

But at the same time, you should take into account that the competition in the market for drinking water is already quite high. A newcomer in this business will have to fight for their customers. Simply reducing prices to solve the problem of competition will not work: the prices are already low, and to work at a loss makes no sense. So if you decide to implement this idea, you will need a business plan to plan all phases of the enterprise: from determining the format of the business to the methods of promotion in the market.

There are different options for making money on water. You can only deal with the extraction of water from the well, only the purification or delivery of other brands of water. There is also the option of opening a point of sale of water bottling or water pavilion. The mass of options – it all depends on the structure of the market and available capital. The minimum cost for opening such a business would be 200 thousand rubles – this amount would be enough to organize a firm for the delivery of water or open a kiosk. If you want to organize a full cycle of water production – from extraction to product delivery – then get ready for more substantial costs.

Let’s try to figure out how much it costs to run a water business and what it would take. Let’s start with the simplest format, which will require minimal investment.

Selling drinking water through vending machines

Selling drinking water through vending machines – an interesting and relatively new idea. People are used to buying hot drinks and snacks in vending machines, so why not sell bottled drinking water? Vending allows you to reduce the cost of 1 liter of water by 4 times. Therefore, with the help of such a system can reduce prices and attract customers. In addition, for the competitive market, this option seems to be one of the most suitable.

How the system works

A reservoir of water is installed in the dispenser. The customer brings the container with him, pays the necessary amount of money, sets the bottle, and draws water. It’s as simple as that. Automatic machines for the sale of water have a vandal-proof housing, a tank with a reserve of water, a system of filling into a container of the consumer, as well as the payment system in cash and by card.

Through the billing system by remote access, you can track the work of the machine. The data reflects the history of the collection, the amount accumulated in the machine. Through this system, you can block the machine, monitor the temperature of the machine, and get information about the state of the equipment.

The range of dispensers is quite wide. They differ in design and capacity (from 750 to 3000 liters/day). Automats can operate steadily at temperatures from -30 to +35 ° C. It is not very difficult to find a manufacturer and purchase equipment. The average cost of one vending machine is 180 thousand rubles.

Servicing the machine is easy if everything is done in time. Basically, service consists of replacing a cartridge once every six months and replacing a sterilizer (once a year).

What are the peculiarities of vending water?

The income of the vending machine depends significantly on the successful location.

Places to install vending machines with water:

• In the courtyards of residential complexes;
• In places of accumulation of people from bus stops to residential buildings;
• At the “exit” from the road to the residential area;
• in actively visited stores, shopping malls, markets;
• in the lobbies of apartment buildings.

The number of installed machines must be correlated with the number of potential customers: about one machine for five apartment buildings. Need to take care that the water in the machine was always there, otherwise, you will lose some of your customers.