Refill drinking water businesses, or refill water depots, are increasingly popular as a promising business opportunity. With growing public awareness of environmental conservation and the need for affordable clean water, this business offers a bright prospect. However, like any other business, running a refill drinking water business requires the right strategy and thorough preparation.
1. Benefits of a Refill Drinking Water Business
Here are some of the main benefits of starting a refill drinking water business:
1.1 Environmental Conservation
One of the primary benefits of a refill drinking water business is its contribution to environmental conservation. By reducing the use of single-use plastic bottles, this business helps decrease plastic waste that is harmful to the environment. The use of refillable gallons that can be reused multiple times helps reduce the amount of plastic waste produced daily. Thus, a refill drinking water business not only profits in terms of business but also plays a crucial role in maintaining environmental sustainability.
1.2 Cost Savings for the Community
Refill drinking water offers a more affordable alternative compared to purchasing bottled water. With cheaper prices, people can save on their daily drinking water needs. This is particularly beneficial for large families or those with high water consumption. A refill drinking water business provides a practical and economical solution for the community to access quality drinking water at an affordable price.
1.3 Daily Necessity
Drinking water is a basic need that must be met every day. Therefore, a refill drinking water business has a wide and stable market. The demand for quality drinking water is always there, giving this business good prospects for the long term. Consumers will always need drinking water, making the risk of demand decline relatively low.
1.4 No Special Skills Required
Another advantage is that this business does not require special skills or higher education. By attending short training sessions and understanding standard operational procedures, anyone can run this business. This makes a refill drinking water business a suitable choice for those who want to start a business with basic skills and adequate knowledge.
1.5 Promising Profit
With low operational costs, a refill drinking water business can yield promising profits. The competitive selling price of refill drinking water allows you to attract many customers and achieve good profit margins. Moreover, low production costs help increase the profitability of this business.
1.6 Minimal Space Required
A refill drinking water business does not require a large space to operate. You can start this business in a limited area, such as a garage or the front part of your house. The important thing is to ensure that the place is clean and meets hygiene standards. By utilizing existing space, you can save on rental costs and focus on business development.
2. Tips for Successfully Starting a Refill Drinking Water Business
To succeed in the refill drinking water business, here are some essential steps to follow:
2.1 Find a Reliable Water Supplier or Source
Water quality is the main factor in the refill drinking water business. Ensure you have a reliable clean water source. You can collaborate with the local water company (PDAM) or find a water source that meets health standards. Regular water quality testing is crucial to ensure the water you sell is safe and suitable for consumption.
2.2 Obtain the Necessary Permits
Before starting the business, ensure you have obtained all necessary permits. These include business permits, health department permits, and environmental permits if needed. Having official permits not only makes your business legal but also increases consumer trust in your product.
2.3 Prepare Complete Equipment
Investing in complete and quality equipment is key to success. The necessary equipment includes water filtration machines, gallons, dispensers, and sterilization tools. Ensure the equipment is in good condition and well-maintained to keep the quality of the water you sell.
2.4 Promote to the Surrounding Community
Effective promotion will help attract customers to your business. Use social media, brochures, and local advertisements to introduce your refill drinking water business. Provide information about the benefits of refill drinking water and competitive prices. Word-of-mouth promotion is also very effective, so ensure to provide the best service to satisfy customers and encourage them to recommend your business to others.
2.5 Maintain Cleanliness and Hygiene
Cleanliness and hygiene are non-negotiable in the refill drinking water business. Ensure your business premises are always clean and sterile. Use appropriate cleaning tools and perform regular cleaning. Consumers will trust and remain loyal if they are confident that the drinking water they buy is processed in a clean and hygienic environment.
2.6 Offer Competitive and Quality Prices
Offering competitive prices is an effective strategy to attract customers. However, do not sacrifice quality for low prices. Ensure the prices you offer match the quality of the water you sell. Customers are more likely to stay loyal if they feel they are getting quality products at reasonable prices.
2.7 Build Partnerships with Local Stores
Building partnerships with stores and stalls around your business location can increase sales. You can offer them to become agents or resellers of your refill drinking water. Additionally, establish partnerships with institutions or offices to provide drinking water for their employees. Expanding the distribution network allows you to reach more customers.
2.8 Provide Excellent Service
Excellent service can be a crucial factor in the success of the refill drinking water business. Ensure you or your employees are friendly and courteous to customers. Respond to customer inquiries and complaints promptly and politely. Additionally, offer free gallon delivery services to customers located near your business. This adds value for customers and increases their satisfaction. Online services through social media can also make it easier for customers to order water without having to visit your business location.
2.9 Sell Additional Products
In addition to refilling drinking water, you can also sell other products related to your business. Products like ice cubes and drinking water accessories such as dispensers, gallon pumps, or water filters can be your main choices. Moreover, you can sell snacks and drinks. This will encourage customers to return to your business to buy other products, increasing your revenue even if only slightly.
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3. Challenges in the Refill Drinking Water Business
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Although the refill drinking water business has many benefits, there are challenges that must be faced. Here are some challenges you may encounter in running this business:
3.1 Quality-Conscious Consumers
Consumers are increasingly aware of the quality of the water they consume. They will be very selective in choosing drinking water, so you must ensure the quality of the water you sell is always maintained. Regularly test water quality and ensure the water you provide is free from contaminants and safe to drink.
3.2 Gallon Quality
The gallons used for refilling must also meet quality standards. Unclean or low-quality gallons can affect the taste and safety of drinking water. Ensure you always use clean and good condition gallons. Proper cleaning of gallons before reuse is also very important.
3.3 Delivery Process
Delivering refill drinking water to customers can be challenging. Ensure you have an efficient and timely delivery system. Delays or issues in delivery can decrease customer trust in your business. Invest in adequate vehicles and resources to ensure smooth delivery.
3.4 Intense Competition
The refill drinking water business is quite popular, so competition can be very tight. You need to have a good strategy to compete with similar businesses. Focus on quality, service, and innovation to make your business stand out. Maintaining good relationships with customers is also essential to win the competition.
3.5 Maintaining Customer Satisfaction
Customer satisfaction is key to success in any business. Ensure you always provide the best service and listen to customer feedback. Be responsive to complaints and provide quick and appropriate solutions. Satisfied customers are more likely to be loyal and recommend your business to others.
3.6 Significant Initial Capital
Although the operational costs of a refill drinking water business are relatively low, the initial capital is not. Especially for purchasing equipment and obtaining permits. You need to prepare a sufficient budget and manage finances well. Find the right funding sources if needed, such as business loans or investment support from third parties. One financing institution you can consider is BFI Finance.
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4. Estimated Initial Capital for a Refill Drinking Water Business
If you are still interested in starting a refill drinking water business, here is an estimated breakdown of the initial capital needed and the potential net profit you can earn:
4.1 Initial Capital
● Refill water machine package: Rp 25,000,000
● 20 empty gallons (x Rp 35,000): Rp 700,000
● Gallon crate: Rp 500,000
● Gallon caps and tissues: Rp 100,000
● Cashier table and chair: Rp 550,000
● Total Estimated Initial Capital: Rp 25,000,000 + Rp 700,000 + Rp 500,000 + Rp 100,000 + Rp 550,000 = Rp 26,850,000
The total cost does not include location rental and permits, assuming you already have a place and handle the permits.
4.2 Operational Costs
● Monthly water purchase: Rp 1,500,000
● Filter replacement: Rp 150,000
● Monthly electricity: Rp 200,000
● Unexpected needs: Rp 400,000
● Total Monthly Costs: Rp 1,500,000 + Rp 150,000 + Rp 200,000 + Rp 400,000 = Rp 2,250,000
4.3 Monthly Profit Calculation
If you sell water per gallon at Rp 5,000 with an average sale of 80 gallons per day, the calculation is:
● Rp 5,000 x 80 gallons = Rp 400,000 per day
Thus, the average monthly revenue is Rp 400,000 x 30 days = Rp 12,000,000
4.4 Net Profit
The formula for net profit: Monthly revenue - Operational costs = Rp 12,000,000 - Rp 2,250,000 = Rp 9,750,000
Starting a refill drinking water business has many benefits but also comes with challenges. With careful planning, good management, and a focus on quality and service, you can achieve success in this business. Always innovate and adapt to market needs to ensure your business continues to grow and sustain.
As known, starting a refill drinking water business requires significant initial capital. Therefore, you need to think about how to obtain this capital. If you do not have enough savings, BFI Finance can help you obtain the capital quickly as long as you meet all the requirements!
BFI Finance is a financing company that provides loans with collateral such as motorcycle BPKB, car BPKB, and house or shop certificates for your business capital. You can get a loan of up to Rp 2 billion! With competitive interest rates, BFI Finance can be the solution for your refill drinking water business capital. Apply for your loan now only at BFI Finance!
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