GUIDELINES FOR DOING A DRINKING WATER BOTTLING PLANT PROJECT
This is an introduction on how to determine the best way to do water a water bottling project and be self-sustaining or very profitable. It is written for any group or person that would like to do any type of water bottling project. We has been in the water bottle business for over 19years and has supplied water bottling plant equipment to over 1000 water businesses worldwide. Our main focus has been on drinking water bottling projects such as small water bottling plants and 1/2/3/5gallon bottled water filling and packages plants. We are the first water dispenser supplier in China,and sell our water dispenser brand to China biggest Listed Companies. We are China China Wal-Mart and Carrefour 10 years water machine supplier. We had build over hundred of water plant for Government organization, high school, university, Armed Police Force. We have a team of 52 experienced technicians for installation and maintenance, which helps ensure the high quality of our filling machinery and top-ranking service as well
Water has become one of the world’s biggest issues both in the lack of water and the quality of water people consume. Every day close to 10,000 die from consuming unsafe drinking water and over half the hospital beds worldwide have people in them with water borne illnesses, of them over half are children under five years old.
Doing humanitarian water projects based on a social enterprise can save many lives, help preventing many illnesses, and many other benefits such as loss of work, income and missed school. By providing safe drinking water at a low cost, this can also make a non-profit group self – sustaining or as a business be very profitable. To give you an idea as to how profitable this is, we have a customer that has been open in Nigeria for just over six months and is netting over $100,000.00 U.S. a month now. His project sells water in plastic bottle for about 30 cent dollar per half liter; while the cost to produce is about five cent each. One of the key factors is to sell the water at a low cost and make money on the volume. How you sell the water will depend on the project type and conditions in your area. For a non-profit water bottling project to be self-sustaining it is possible to sell the bottled water as low as 12 cents per liter. If there are any ongoing expenses such as maintenance and filters the project must charge something in order to make the project self sustaining.
When deciding where to do your water project there are many different types of locations and you need to think about several important business factors when picking a location. There are thousands of cities that have a population with over 30,000 people that have a great need for safe drinking water, including some of the world’s largest cities. Fifteen of the twenty largest cities in the world have poor water conditions and many lack water all together in the urban slums. To do a water bottling plant project that has a cost $40000-200000 according different degree of automation and production, it would be much better to provide bottled water to as many people as possible. It is much more profitable to sell 20000psc bottled water per day at twenty cents than 2000psc bottle water at 50 cents. To have a successful water bottling project there needs to be a value for the water, yet must be affordable for the local consumer population.Win the bottle water sell channel,win the right to speak to decide, then you win the customer and market. But if you are very power of policy and else,you can just waiting and count the money.
Most of the populated areas in countries are established close to a water source; such as rivers, lakes, springs, and underground sources such as wells. As the population has grown in populated areas, so have the contaminants levels. Many of the water sources have not had any or very little testing for the water quality for known contaminants and the source of contaminants is also unknown most of the time. The source of contaminants will very widely from natural contaminants, industrial runoff, mining, pesticides, fertilizers, illegal dumping of waste, human and animal waste and natural biological growth in the water.
When considering locations for doing any sort of water bottling plant project the urban slums are one of the areas with the greatest needs and are often most forgotten. Most urban slums do not have any water there and must be carried or trucked in. Some of the slums are also located on river or waterways that are extremely contaminated. The number of people living in the urban slums varies from a few hundred to over a million people. In most of the slums people have to boil the water to make it biologically safe, however the water still has many other contaminants in it.
To see just how bad the conditions are in the urban slums you should see the movie “Slumdog Millionaire,” which shows just how bad life really is. To boil the water is much costlier than it is to purify the water making free of contaminants. Most of the people living in the slums are hard working people with very little education if any. The income level for most of the people there is less then five dollars a day and for many as low as 1 or 2 dollars a day, while some cannot find any work. Some of the slums do not have any water source close by and mostly the women and children have to get up very early to go and get water from hand dug wells that will only yield small amounts of water. This prevents them from working or going to school, with no future of a better life.
THE IMPORTANCE OF DOING A WATER TEST
There have been thousands of water projects where the water was not tested or was just tested at the startup of the project. It is very important to test the water on startup and at least every 6 months depending on the type of project and the equipment used. To give you an idea as to why this is important, in the 1980’s there were a lot of wells drilled, over 2,000 in India and Bangladesh that were tested on startup. After a few years of operation many of the wells were pulling water through the aquifers that had arsenic levels over 100 times higher than the World Health Organization’s guidelines. By not testing the water, millions of people became ill and many died. This was not on a small scale, there were 25-30 million people drinking from them.
When doing a water filtration project it is very important know what is in the water to engineer the best treatment methods and determine what type of equipment is needed. There are many contaminants in water that may be safe to drink, but can cause problems with the equipment. This leads to much higher maintenance cost and poor performance of the equipment. In many projects there is equipment that has been installed that is not needed and also raises the cost of the project. To do a project the proper way, the source water must be tested; it is much better to spend a few hundred dollars than thousands of dollars later or to buy equipment that is not needed. Testing your water can prevent many problems. In some cities or areas the local water company will have test results, so do your homework.
STEPS TO DOING A BOTTLED WATER PROJECT
- Determine the location: The location for many water projects is going to be the most important decision to the success of the project. Close to the source water, close to the road or highway, close to the market. According to your detail condition.
- You should write down project goals. Creating a business plan with your final goals is a must and will help to develop your project.
- Where is the water going to coming from? As part of determining the location you will need a good amount of water. If you are going to be using a city’s water supply you need to make sure it is not off for long periods of time and the pressure is good all the time. If you don’t have a good supply of water you need to think about your options, one being a well (borehole) or to buy water from a bulk water truck. Both will cost you more in setup and operating cost.
- What type of electrical do you have? In some areas or cities you may only have one option as for the voltage or phase, which you need to know. Most of our machine need three phase voltage power,its another name is Industrial electricity,it is different with Residential electricity(single phase voltage), you need apply from local Grid.Is the electricity on all the time or only on for a few hours a day? If the area is known for power failures you will need a generator and the type you use will depend on how much or often it will be used.
- After you have determined the above you need to get your water source tested to know what equipment will be needed or not needed.
- Next you need to determine how pure you need or want the water to be. There are many wells that will produce safe water without a lot of equipment. In many cases the water will be un-safe from a well or city supply without treatment.
- Cost is always a factor in setting up a pure/mineral water filling project plant, many time people will start with a smaller capacity bottled water plant and add to it or upgrade later, but to do this you need to plan ahead. In most cases this is not hard to do. You can always start smaller and expand later. It is always best to plan on a higher quality of water so a competitor does not come into the area and possibly take your customers away from you.
- How are you going to package the water? The cost to produce a very good quality of water is about $0.001 U.S.D. per gallon (3.785 liters). To package it can cost up to 25 times more, depending on cost. This is why it is best to have reusable packaging and it is much better for the environment. In many countries or areas there are different types of bottles that are available at a low cost. Using a larger bottle that is 1-3 gallons or 4-12 liters that can be refilled many times, and is the best way to go due to the packaging cost. The smaller throw away bottles like .5-1 liter are very expensive and require a much bigger plant and more equipment. In a lot of the third world countries getting bottles can be more of a difficulty.
- What size does the plant need to be? The size of the water bottling plant is determined by what type of project and the amount of equipment that will be needed. For a simple bottled water plant that is refilling bottles that customers bring into the plant that has a good water supply, 30 sq. meters (300 sq. ft) of empty space will work fine. If you have a poor water supply you would need an area for the raw water tanks which will require more space. When you do bottling you need even more space for the bottling equipment and to store a lot of preform and cap. The plant size needs to be determined after you know what equipment you will need and the amount of storage for the type of packaging you will be doing.
- One of the most important considerations that needs to be looked into is the technical support and replacement parts should you have a problem. Many times a project will have a problem and no one knows how to fix it, they will not have the tools to repair it, or worse yet will not have the components needed on replacement parts. Proper training for any project is very important and is a must!
SETTING THE PRICE OF THE BOTTLED WATER
Setting the sale price of the bottles water is going to be very important for any project, even non-profit projects. All bottled water that requires any cost needs to have a price so that people do not take advantage of it, i.e. such as reselling it or washing clothes.
In for-profit water projects you need to establish a cost so that the people will be able to pay to buy the water. You need to have the product that people can afford on a daily bases. It is best to research what other products are selling for in the area, but also consider selling at a low cost in the bottle refilling stations. Do not forget about supply and demand, if people cannot afford it they will not buy it. It is always better to supply the masses than to go for a very small market share. In some markets you will find that the competition is very high for a product so the demand for your product needs to be high.
About Water Quality
As water travels over land or through the ground, it dissolves naturally occurring minerals and may pick up substances resulting from human activity or the presence of animals.
Substances that may be present in source water include: biological contaminants (such as viruses and bacteria), inorganic contaminants (such as salts and metals; pesticides and herbicides), organic chemicals from industrial or petroleum use, and natural or man-made radioactive materials.
STARTING YOUR OWN NAME BRAND
Starting your own name brand is very important for any group that would like to take a water business to a higher level. When developing a name brand there are many key factors to doing this. Quality of the product is one of the most important issues that needs to be addressed and must be consistent. If you are starting a bottling line, cup product or a retail water store they need to be uniform in design and look. When having a major brand and you have a problem with one product it can potentially put you out of business, so it is best to keep the quality of a very high standard for the market. One of the most important things that need to be done is to get your product name in front of the public. This should be done by as many ways as possible, by having a clean store front with logos, logos on clothing for the employees and delivery trucks if you are doing delivery, even for your wholesale accounts. Logos should be on all your advertising material and you need to keep your name out front. When expanding your brand name, it best to focus on a larger market of say 100,000 plus people, by doing so you can expand out from one point to cover the area with more local water plants. You need to remember that to do advertising to an area that is a larger market it cost the same if you are using the media like newspaper or radio to promote one plant versus five plants.
Wholesale opportunities are one of the best ways to distribute water because of the return on a higher volume and benefits to both the water project and customers. Wholesaling water often results in greater profits, covers expenses all at once, increases the area that the water will reach and serve, creates jobs for wholesalers, and is also more convenient for customers. In many developing countries water wholesaling is done through local water delivery services and selling water in quantity to small stores, businesses, and factories.
Wholesaling water can be very beneficial for water projects and water enterprises in the operations of the project. Wholesale water sales are more profitable because you are selling a larger volume at a slightly lower price, bringing in more revenue through large purchases by wholesalers. This is beneficial because it can cover the project’s expenses with the purchases from one or several wholesalers, making any additional revenue from customers and other wholesalers a source of profit. Also larger distribution will increase the service area and target market that the water will be available for, giving you a larger and more widespread customer base.
Also there are benefits for the customers as well with wholesaling the water. First and foremost it is more convenient for the customer to obtain the water if receiving from a closer location such as a small convenience store or water delivery service. Also, it can create employment opportunities as people can take on the role of a water distributor through a water delivery route. Overall, wholesale water sales can be beneficial to both the enterprise and its customers.
Many people feel that water enterprises are not a low cost project and because of this many people experience difficulties in allocating funding the startup of a new water project. There are several different ways to fund projects based on the project goal. For completely humanitarian projects the majority of the funding comes from humanitarian foundations, rotary clubs, relief aids, grants, government funding, church organizations, developmental banks, and charitable organizations. Funding from groups like these however does not supply funding for individuals looking to start a humanitarian water project.
In the case of an individual wanting to establish a humanitarian water enterprise sources of funding include but are not limited to developmental banks, private investors, business loans, community groups, and grants. The developmental banks allocate funding for the development of new areas and technologies within the area when funding is available However, funding is not always available through developmental banks. Also the private investors and business loans allow for an individual to access funds for the project startup while paying pack interest rates, which is a concept similar to microloans. Also water enterprises are of interest to many communities which may have funding for individuals with the knowledge of establishing a successful and sustainable water project, because ultimately the community members are the beneficiaries. Grants are given to individuals and groups looking to establish non-profit water projects for the benefit of the general public.
When looking for funding it is important to consider all avenues of funding programs. It is possible to receive funding from group programs which are privately funded through local non-profits or foundations. This will work with groups like the local Rotary Club, where a group of members will provide the funding as a group and receive payback through profits. A proposal such as a secure contract for the sale of water to larger organizations and factories established before the project startup will aid in receiving funding because it establishes a contracted sales plan to cover the costs of the project, pay back startup costs, and make the project a “bankable” business. Also if establishing funding through an action group such as a local Rotary Club, a proposal similar to that stated above can be used to contract the sale of water to the businesses of the Rotary Club members, which guarantees both parties will receive the benefits. The enterprise operator will have a contacted income for repayment of the startup costs while the businesses will receive higher quality water at a better price. This can be done simultaneously while operating the enterprise for humanitarian water purposes as well. Predetermined sales contracts may also be helpful for individuals looking to start a water enterprise because it gives the enterprise immediate income for repayment of startup costs or any loans received to fund the project startup.
Angel is looking for companies or individuals that would like to start out in the bottle water business. You would begin by setting up and owning one bottled water businesses. You would then start to sell equipment to others as a Stocking Distributor.After the sales have grown to a good number of sales per month, we would then begin to work with you to manufacture equipment. You will need to start out with a small, but strong sales force after opening your first Water bottle business and then expand the business. This would work out to be a win- win business for all involved.
ANGEL has over 19years experience building and installing equipment world wide. We have a proven track record to make your business grow and become very profitable. By achieving what we have done in many countries, we have a proven business plan that works.
ANGEL offers something that is important to any business. That is selling a product that you feel good about and also knowing that it’s a win-win for all involved.We will work with you to help you develop the market in your area. We will also train your technical staff on how the equipment works along with trouble shooting and maintenance as well as working with you in other business aspects.
WORKING WITH YOU
We at Angel would like to work with you to develop your drinking water bottling projects and to help make your project as successful as possible. Please feel free to contact us about your needs and with any questions you may have.