Sale of water through vending machines – business plan with calculations

Selling purified water through a vending machine is rapidly gaining popularity, because it is not only profitable, but also useful. The service is used by students, office workers, employees of shopping centers, as well as people who are worried about their health.

This type of business is not tied to a specific time of the year, since water is always needed. In summer, water sales increase by ten to twenty percent. In this article, we will try to tell in detail how to organize your own business selling water through vending machines.

How does a water dispenser work

There are two types of vending machines.

  • The first type is devices with a built-in storage tank, which is filled with already purified water. The container usually has a volume of 1000 liters and is made of food grade plastic.
  • The second type has a direct connection to the city water supply and independently purifies water using internal filter systems.
    Also, the devices may differ in design and performance of liters per day of water.

Devices connected to the water supply have the following properties and components:

  • multi-level filtration and purification system;
  • they produce machines mainly from food steel, which is not subject to oxidation (does not rust), and also there is no mold and bacteria on its surface;
  • anti-vandal display, on which the buyer can see the cost of a liter of water and the date of filter replacement;
  • instructions on the case for users of the device;
  • payment for water is possible in cash, by bank card or loyalty card of a regular customer;
  • Parts of the case made of plastic also have anti-vandal properties, to break them, you need to try hard.

The system works like this: a large container of water is installed in the vending, the buyer comes with his empty container, deposits money and collects water. Everything is very simple and convenient. It will be beneficial to set up a remote monitoring system , it will allow you to control the operation of the devices from any mobile device with the Internet.

With it, you can get the most detailed information about sales, see how many buyers have purchased water and how much, as well as the average sales volume per day, peak hours and even days. It is also possible to remotely control the device , change the price per liter of water and monitor its technical condition, remotely turn off the power supply, stop the water supply, see that the banknote and coin acceptors are full or faulty, as well as see malfunctions with the software part of the device. There is a function to connect online cash registers. All these operations are carried out through a personal account.

Standard banknotes and coin acceptors are installed in vodomats: they not only accept money, but also check them for falsity. Newer models have the function of issuing change, as well as accepting loyal customer cards and bank cards.

! According to experts, this niche is free in more than half of Russian cities.

Business pros and cons

Vodomat reduces the cost of 1 liter of water by 5 times.

There are more pros than cons in this business:

  • Simple business organization.
  • The water machine occupies no more than 1m2, so renting will not be very expensive.
  • High profitability.
  • Fast payback.
  • You can deal with the devices yourself, without resorting to hiring workers, since the maintenance of the device takes no more than 2-3 hours a week, or even a month.
  • Small initial investment.

One of the main disadvantages is that the vending machine cannot be filled with containers and people who come without bottles cannot make a purchase. Also, despite the anti-vandal property of the machine, it is still possible to break and break it, which will entail the cost of damages.

Business formats for the sale of water

In total, there are three types of water bottling machines:

  • kiosk (sold imported water)
  • floor (the machine is installed on the ground or mounted on the floor in the building)
  • wall-mounted (mostly outdoor version)

Floor and wall are connected to the water supply and only purify and filter the water (most often using a reverse osmosis system). The kiosk is designed for the sale of imported and already purified water.

The cleaning process consists of several stages:

  • Mesh filtration – water is purified from impurities;
  • Carbon filtration – chlorine is removed from the water;
  • Nano membrane separates hard salts and dyes nitrates and sulfates;
  • The silver mesh adds a disinfectant and preservative property;
  • There is an addition of mineral salts necessary for our body;
  • UV lamp – kills harmful bacteria;
  • At the outlet, the water is ionized, this happens right when the water is released into the buyer’s bottle.

Devices do not freeze at low temperatures, with the help of a module preventing freezing.

How to organize a business selling water through vending machines

So how much can you earn from this business, let’s look at the business plan:

Choose the ideal place to trade purified water. Your earnings will depend on this.

  • Issue an IP;
  • Buy a water machine;
  • Connect the machine to the central water supply system;
  • Employ personnel to service the apparatus, if necessary;
  • Make an advertisement for your business.

Let’s consider these points in more detail.

Demand analysis and site selection

According to statistics, the demand for purified water has increased significantly in Russia according to a sociological survey. Every eighth person buys purified water in winter and every fourth in summer. The competition in this area is still low, so this business is a very profitable investment.

competition analysisThe main thing is to choose a good place to install the device and trade in purified water. To do this, you need to evaluate several factors:

  • The need of the population for purified drinking water. Based on the quality of tap water: if the water is bad or there are frequent interruptions in water supply, then the chances of business development are very high.
  • Estimate the total number of inhabitants in the area or settlement to understand how many water machines will need to be installed to meet the demand for water.
  • Assess the level of competition in that location. To date, the market is seventy percent free, depending on the regions, and in some regions, one hundred percent. The only thing you need to pay attention to is that in dense urban areas, water pumps should not be located closer than two blocks from each other.
  • Consider competition in the form of sales in 19 liter bottles. But it should be understood that water in 19 liter bottles is 3-4 times more expensive, and the quality is no different from purified water in vending.

Therefore, it is better to install a device for selling water in residential areas, close to residential buildings or on residential buildings; shopping centers and supermarkets; in the private sector where there is no central water supply or there are frequent interruptions in water supply. It can also be installed in indoor markets and pavilions, business centers, supermarkets, even on the beaches, in the summer it will bring a lot of profit.

Hiring service personnel

In order to be engaged in this business, it is necessary to issue an IP. Conclude a lease agreement for the place where the water machine will be installed. And also, if you have a person who will serve him, then draw up an employment contract with him.

You can buy a vending machine on various sites where you will be helped not only to choose, but also to carry out delivery and further service.

Service is necessary if you do not understand the technical part of vending machines. It is also possible to hire a person who will monitor the working condition of the device, carry out collection, if necessary, replace the filters of the filter cleaning plant. Also, once a month, take readings of water and electricity meters from the device and pay rent.

The main driver of advertising is the good location of the device, but you can think of other options. Hire promoters, make a bright sign and set up creative signs.

How much to invest at the start of a water vending business

Now let’s try to figure out how much this business will cost.
According to statistics, a family of 4 consumes about 300-350 liters of water per month. At least 15-20 Families use one vodomat every day. In Russia, the tariff for cold water varies in the range of 40-50 rubles/m3. And the price of water in a vodomat 1 liter is 4-5 rubles. The cost price of 1 liter, taking into account filters, is 0.85 rubles. Replacing filters per year costs 30-35 thousand rubles. The cost of the device itself is 160,000 rubles.
It turns out.

  • Vending machine – 160,000 rubles;
  • Opening of IP – 2000;
  • Payment for unfiltered water per month – 800 rubles;
  • Filter replacement – 1000 per month;
  • Electricity – 200 rubles per month;
  • Rent a place – 2000 rubles per month;
  • Revenue from one device is 45,000 rubles;
  • Spending per month 4000 rubles;
  • It turns out that the payback period of one device is 4-5 months , depending on the location of the water machine.

Business risks

  • Firstly, a 30-50% decline in demand in winter significantly reduces revenue. Thus
    , for the successful implementation of a vending business project, the ideal
    time to purchase and place vending machines is spring. By the end of the summer, full payback will be achieved.
  • Secondly, technical or vandal breakdowns lead to equipment downtime for an average of 1 day, which causes damage of 2,000 rubles from each
    device. The cost of repairs on average is laid down another 2000 rubles. 4% of the annual revenue is allocated for this type of risk. To reduce this risk
    , an agreement on liability and protection of property is concluded, with a room where the device itself will stand. If the device with water is located
    on the street, then it is worth insuring it.

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