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"Bottled Water Delivery Business": Tips and Tricks to Start

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With each passing year, the demand for clean water has been steadily increasing. The improvements of health consciousness have caused people to avoid tap water in fear of chemicals and impurities. With that being said, the bottled water industry has some very promising business opportunities. One of such opportunity is a bottled water delivery service business, which is a relatively easy start-up with relatively low investment cost.

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Before we get started with your bottled water delivery business plan, there are some things to consider:

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1. What Type of Bottled Water Will You Deliver?
There are mainly three types of bottled water available, spring water, distilled water, and purified water. Each one has many brands that vary in price and therefore, consumer base. To help you decide, it's best to do a market research around your area, which typical brand has the most market share? Is the cost for each bottle allows you to make enough profit? Are there any cheaper alternative that can compete with the brand? Or slightly more expensive but better ones?

Same thing should be done to decide what size of bottled water you will be delivering. Is it individual ones or large ones, usually available in 3 or 5 gallons. You might also consider selling both sizes, as it might secure you better deals with the suppliers. For example, you can negotiate for a certain quantity of smaller bottles as a bonus for your large bottles purchases.

2. Secure The Best Deals with Your Suppliers
With very competitive price in the industry, you need to secure the best deals possible before you enter the market. This will ensure your survival and steady profit. Smaller brands might offer you better deals, however, marketing them will also be harder. So consider your options carefully.

3. Do Your Market Research
A proper market research will help in the long run, with tactical and strategic plans can also be based on your research results.These are some questions that you can use as a starting point for your market research:

- Is the market size large enough to make a profit and sustainable business?
- Is the market's buying power allows you to charge extra for delivery?
- What pricing will be best for your target market?
- How large do you think your startup will be appropriate to answer the demands?

4. Prepare Your Investment
As been stated before, this business has relatively small start-up cost. A small delivery business can be started for below $30,000.

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Most of your expenses will be for:

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- Rent
You can start with a 1,000 sq ft area for warehouse purpose. But you will need more room as the size of your business grows.

- Trucks / Vans
You will need a delivery van or truck to begin.

- Permits and Licenses
This may differ with your location, but it will be relatively simple compared to more complicated business.

- Marketing
This business will largely dependent on how good your marketing and how large your consumer base is.

Earning Potential !

With average 5-gallons bottled water price around $7 and average people drinks around 58 gallons a year, you can get $406 annual revenue per customer.

If, say you have 50 families averaging four people, you can make $81,200 in annual revenue.

As stated before, this business will largely dependent on how good you can build your customer base with your marketing effort. If your planned area is dense enough, and you can capture enough consumers, this business can be very profitable in the long run.