Business Plan: Water Vending Machines
The problem of clean drinking water is relevant in all cities and towns. Drinking tap water without purification is unhealthy, and buying bottled water in stores and kiosks is not always convenient. In such a situation, vending machines for the sale of water become the solution to the problem.
The vending machine business in Russia is still relatively new. Residents are accustomed to using vending machines to buy hot drinks or snacks, and buying water this way is popular in no more than 20% of Russian cities. At the same time, in Europe and many Asian countries, this type of vending machines is in steady demand among buyers. This opens up a wide range of opportunities to grow your business. In addition, the business is highly profitable and usually pays off in 3-4 months.
Pros and Cons of Water Trading Business
Organizing a business has several significant advantages:
All work is carried out by a water machine for water purification, the intervention of the owner in the process consists in cleaning and periodic maintenance. A number of works should be carried out with a frequency of once every few weeks, and some operations are carried out every few months. Therefore, at the initial stage, you can do without the involvement of hired personnel. And even in the case of creating a network of vending machines for the sale of water, the need for personnel is minimal – only a few employees.
The machine works around the clock, which allows you to increase sales opportunities.
Investments at the start consist of the cost of buying a machine and organizational costs, so the threshold for entering the business is very low.
The size of the machine allows you to save on rent (requires an area of less than 1 sq.m.).
The payback period is several months, in rare cases of unsuccessful organizational decisions it can reach up to 6 months. The ability to quickly return the investment is a definite plus.
Ease of organization and management. The owner does not require additional education or the study of complex techniques. Even a novice entrepreneur can cope with such a project.
Low cost of doing business. Since large areas for rent are not required, and the entrepreneur can work without attracting additional personnel, the most costly items of expenditure are minimized.
High business profitability. Since the cost of doing business is negligible and the demand for water is constant, starting a water selling business can be a highly profitable venture.
But there are also disadvantages:
The machine can be damaged; acts of vandalism or hooliganism are not uncommon. It is impossible to completely protect yourself from this, and external damage will require additional costs on the part of the owner.
Usually in such machines there is no way to sell water containers. The customer must come with their own glass or bottle, which reduces the possibility of spontaneous purchases. Many do not have suitable packaging and therefore refuse to purchase.
Features and types of machines
Outside, the water vending machine consists of a control panel (several buttons), a payment panel (cash and non-cash) and a niche for containers into which water will be drawn. The outer case usually contains information about the benefits of clean water.
There are the following types of machines:
Wall and floor apparatus have a common scheme of operation. The machine is connected to the central water supply system, inside the machine there is a filter for cleaning and a tank for water accumulation. The device has a good cleaning system, which is difficult to afford in domestic conditions.
The kiosk is designed to centralize imported artesian water and involves a different type of work.
Step by Step Business Plan for Water Vending Machines
Any business requires proper organization and planning. It is required to solve a number of issues and create favorable conditions for the implementation of a business idea. Let’s look at the launch plan in more detail.
Step by step business plan
Demand and competition analysis
It is recommended to start the analysis by determining the quality of water at the intended installation site of the device. Not only potential demand depends on this, but the estimated costs of water treatment.
The buyer portrait suggests a wide range of valuations:
age (from 18 to 55 years);
gender (men and women);
professions (a wide range of professions).
A separate category is people leading a healthy lifestyle.
The analysis of competition involves both the assessment of direct competitors (specialization – vending machines for the sale of water), and other options for the sale of drinking water: the sale of bottled water, water for coolers.