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How to start a water delivery business

Running water from the public water supply is not suitable for drinking. Filters work slowly, they cannot always satisfy the water needs of a large family or an entire office.

Venta-crm company will tell you how to open a water delivery business with competent logistics and customer service. We have developed a unique CRM system specifically for water delivery companies. The system helps to improve service, quality of work with customers, and increase sales.

Automation of water delivery with a CRM system will help to respond faster to customer requests, not to disrupt the delivery schedule due to the human factor.  

Benefits of starting a water delivery business

Creating a water delivery business has a large number of advantages. This format is suitable for gradual development with low start-up costs. The competitiveness of the delivery market is quite low. At the start of work, the profitability of such a business is small, but with the right strategy, the founder has every chance of developing into a large company.

The main advantages of a business in the field of drinking water delivery:

1. People always drink. Water is the only product in which a person feels a constant need and has no analogues in its effect on the body. Your customers will be ordinary people: families, employees and management of offices, enterprises, etc.

2. Drinking water is needed everywhere. Frequent buyers of water are offices, educational institutions, cafes and restaurants. There are always a lot of people in them, the filtration system will not cope with the water needs.

3. There are several ways to organize delivery. At the initial stages, you can order supplies from other manufacturers, but the profit will be lower. Later, as the company grows, you can drill your own well. Production costs will quickly pay off.

In every region of Ukraine there are large suppliers from whom you can make purchases at low prices. Independent production requires financial investments on a larger scale and is not always suitable for novice businessmen.

Features of the water delivery business

The decision to open a water delivery company has many advantages. Unlike other types of business, water supply is not seasonal. In Ukraine, the number of people who care about their health and prefer to buy clean drinking water in less reliable ways: drinking from the tap or filtering is growing. Also, in all cities, the number of business centers, office buildings, catering establishments, etc., which are the main consumers of delivery, is constantly increasing.

The demand for delivery is year-round, slightly decreasing during vacation and holiday seasons. You can compare demand with food delivery, flower shops, car repair shops and other types of business. They seriously depend on seasonality, the number of holidays per month and the general well-being of citizens. Everyone needs water.

Marketing to attract customers to water delivery has some specifics. Private customers are willing to buy drinking water mainly in large cities. On the periphery, demand from individuals is lower. In advertising and communication with customers, it is important to note that bottled drinking water is cleaner and safer than boiled and even filtered water. It is recommended to think through the assortment. Create a choice for buyers in terms of container volumes, delivery methods, etc.

How to make a water delivery business profitable:

- Try to find and retain corporate clients, their orders are large, the need to replenish stocks arises constantly;
- Offer customers to rent containers and return empty bottles during the next delivery cycle, so you will save on the purchase of raw materials;
- Do not lower prices on the market, fight for the quality of the product.

Price dumping is the worst strategy in business. You earn less, reduce the opportunity to earn money from other companies. Supply clean, high-quality water and customers will buy it even more expensively than from competitors.

Drinking water quality

It seems to novice entrepreneurs that organizing a water delivery business is quite simple. Plain water is available, it is easy to find a supplier and simply deliver bottles to the addresses of buyers. In fact, it is important to offer customers a quality product.

There are a number of requirements for drinking water:

- Essences, flavors and other artificial components do not exceed 1% of the composition;
- Purity, absence of bacteria and harmful trace elements harmful to humans;
- Uniqueness, reasons why the buyer needs to choose your water.

There are also several GOSTs on the territory of Ukraine dedicated to water quality. The product must comply with them, this additionally attracts buyers, makes the product high-quality.

Some entrepreneurs try to go the way of deception. They supply customers with ordinary running water in branded bottles. Any inspection or meeting with a picky buyer will lead to a loss of reputation and customer base. In addition to loss of profit, there is a risk of incurring financial costs. Defrauded buyers have the right to go to court to recover damages for moral and physical harm.

How to organize a water delivery business

To start a water delivery business, it is recommended to make a plan and follow it step by step. Try to calculate all the nuances of the work, from the schedule and delivery mode to the method of interaction with customers, the assortment. Be sure to consult with lawyers: how best to legally organize your business (individual entrepreneur, legal entity), which taxation system to choose, etc.

What business format to choose?

The organization of a water delivery business is usually formed in one of three formats:

- Full cycle. You independently make the product, package and brand the container. To work in this format, you need to create a small enterprise for the production of bottled water, drill a well for water, and undergo epidemiological inspections. The full cycle involves significant investments, hiring employees for constant microbiological tests of water and containers.

- Participation in a franchise. A convenient format for novice businessmen. Franchises are groups of companies with an already set standard of customer service, supplier databases, and customer communication systems. Working with a franchise makes doing business much easier, but imposes significant restrictions. In addition, a successful large business can only be built on super-popular franchises with a widely known name.

- Working as a dealer. The easiest way to enter this business segment. You buy goods from manufacturers in bulk at prices lower than market prices, resell them to the end customer, taking into account costs and your own profit.

Companies often go through several formats. For example, at the beginning they sign a contract with a supplier from a large brand, then open their own production or combine it with participation in a franchise.

Warehouse and office rental

To open a water delivery company of a size that is significant for the market, you need to organize a place to work. In a standard system, the company will need a warehouse for goods and an office for employees.

With a limited budget, you can look for compromises:
- The warehouse and office are in the same building, combined. It will be suitable if there are few employees and goods or you and partners/friends work for the company without hired workers.
- The warehouse and office are at the entrepreneur's house. At the start, you can do without additional premises, sacrificing part of your personal space. The method is economical, but it is difficult to sustain this mode for a long time. A person needs to distinguish between home and work.

Additional investments will be required during business expansion. As demand grows, 1-2 cars will no longer cope with the load, and a garage will need to be added to the warehouse and office. In large cities and at the start of work, premises are rented. In the future, they can be bought out and business costs reduced in the long term.

Equipment

If you decide to stick to the full-cycle format, organizing a water delivery business at the initial stages will be more difficult.

To start production, you will need:

- A well with pumping equipment;
- A filtration and purification system;
- Water tanks;
- Equipment for bottling and packaging;
- Bottle sealing and labeling machines.

You will also need to undergo inspections at the SES before starting and during work. Additionally, you will need digital equipment for managers: computers, phones, software, etc.

How much packaging is needed for a startup?

The water delivery business is largely built on packaging. The container will be needed constantly. The plus is that it can be used for up to 1.5 years. The minus is that you will have to constantly buy additional canisters, negotiate with customers about the preservation of the container and with suppliers about convenient rules for its circulation.

Containers are purchased for the full production cycle. The cost of 1 canister is about 1-2 dollars. By agreement with the buyer, the container can be picked up, cleaned and refilled. If the buyer wants to keep the canisters, the cost of delivery will increase.

Some entrepreneurs rent containers from suppliers. Each client needs 3 canisters at the same time. One is used by the buyer, the second is used by the supplier in production, and the third is waiting for the delivery queue and is in the warehouse.

Transport

For comfortable work, you will need 1-2 cars. The model is selected based on the capacity of the body. The work vehicle should fit at least 50 bottles of the maximum volume from the assortment.

The most economical option is a gazelle. They hold up to 70 canisters. Increasing the load significantly reduces transportation costs. Foreign trucks with a small permissible load are also suitable. They are more expensive, but more durable, consume less fuel and break down less often. The fewer canisters a car can pick up at a time, the more expensive it will be to transport goods.

Company staff

During the launch, a significant part of the work will be able to be performed by the businessman himself. For the full-fledged operation of the drinking water delivery company, it is necessary to staff the following staff:

- Dispatcher for receiving orders and delivery logistics;
- Manager for cold/hot calls, negotiating with clients;
- Warehouse employee for accounting of goods;
- Loader;
- Driver;
- Accountant.

The greater the demand for the company's services, the wider the staff.

Business automation using a CRM system

You can simplify, optimize and improve the work of your staff using a CRM system.

This is software that allows you to solve many tasks at the same time:

- Create a database of customers and potential customers;
- Save information about each customer;
- Analyze the company's marketing, refine it;
- Track sales peaks;
- Remind employees and customers about upcoming deliveries, offers, bonuses.

Venta-CRM offers its own software, developed specifically for the water delivery business. We have taken into account all the nuances and needs of businessmen, and have set up an ideal system for working with customers.

Don't forget about advertising for your business

The easiest thing about marketing is for businessmen who decide to acquire the right to participate in a franchise. Franchises help to advance in the market, they use the name of an already well-known brand. It is more difficult for new brands to attract buyers. You need to tell about yourself in the market, launch an advertising campaign.

In the current market conditions, the simplest advertising solutions will be:

- Creating your own website It can be used both to attract customers and to communicate with buyers. A properly configured website will help tell the target audience about the brand through search engines.
- Announcements on advertising platforms. There are many resources for ads on the Internet and in the media. Most of them work for free, which will help to advertise at the beginning of work without costs.
- Promotion on social networks. It will cost a little less than developing and promoting your own website, especially in small towns.
- Promotions. Print leaflets with a commercial offer, hand them out to passers-by, leave them in business centers, stores.

The above methods of attracting customers work with regularity and consistency of approach. Irregular promotions will not help to grow the customer base.

Profit and expense forecast

Depending on the city, the chosen format, and the specifics of specific companies, you will need $4,000-7,000 to start.

Example of calculation:

Illustration

In addition to initial investment, the business requires monthly expenses:

Illustration

The above calculations are approximate. The cost of expense items may vary depending on the current exchange rate and the economic situation in the region.

Contacts

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Home

Tariffs

Video review

Blog

About the company

Contacts

Offer contract

Opportunities

CRM system

App for couriers

Order management

Route optimization

Website + CRM (for water)



© 2019 - 2024 • Venta-CRM

Telegram

Home

Tariffs

Video review

Blog

About the company

Contacts

Offer contract

Opportunities

CRM system

App for couriers

Order management

Route optimization

Website + CRM (for water)



© 2019 - 2024 • Venta-CRM