How to Start a Bottled Water Business
HOW TO START A BOTTLED WATER BUSINESS
Bottled water businesses deal in the bottling and distributing of drinking water to consumers. Whether purified, distilled, or natural spring water, your bottled water business will supply your customers with ample hydration. Taking the steps to start your own bottled water business can be a satisfying experience that allows you to make money while also helping your customers achieve a healthy lifestyle.
Start a bottled water business by following these 10 steps:
You have found the perfect business idea, and now you are ready to take the next step. There is more to starting a business than just registering it with the state. We have put together this simple guide to starting your bottled water business. These steps will ensure that your new business is well planned out, registered properly, and legally compliant.
STEP 1: Plan your business
A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:
- What are the startup and ongoing costs?
- Who is your target market?
- How much can you charge customers?
Luckily we have done a lot of this research for you.
What are the costs involved in opening a bottled water business?
Costs for starting a water treatment plant include storage tanks, filling machines, water treatment machines, filters, conveyors, sealers, water sterilizers, water dispensers, bottle loaders, trucks, and employees to work in the plant.
Startup costs can range from $500,000 to $750,000 for a “bare-bones” plant. However, some plants may require more capital, up to $1.5 million, or more, depending on the size of your operation.
You will also need a license from the U.S. Food And Drug Administration (FDA). You will also need a permit from your state health department.
Finally, you’ll need a dedicated bottle supplier, a water source, and employees to run your plant. This is a very labor-intensive job.
Ongoing expenses are extensive. Maintenance on the plant can cost tens of thousands of dollars every year for a small plant, and as much (or more) every month for a medium to the large-scale bottled water plant.
Utility costs can also be high, due to the process of purifying and bottling water.
Labor costs are also high, as most employees expect a full-time salary, plus benefits. Liability insurance, health insurance, unemployment insurance, 401(k) matching and administrative services, and worker’s compensation insurance can run tens of thousands of dollars per month.
The following Items have a big effect on your cost and performance:
1- Which niche market you want to work in? (Non Gallon or Gallon bottle)
2- Which machine and which level of automation do you select?
If you don’t already have an idea about your factory equipment in mind, contact us. In addition, you can visit our “How to choose a bottle Washing Machine?” and “Which palletizer system will be best for you?”
Customers are usually commercial enterprises like local grocery stores. However, some small companies do sell directly to consumers or businesses.
How does a bottled water business make money?
A bottled water business makes money by charging customers for processing and bottling potable water.
How much can you charge customers?
Bottled water has a high markup. If you are selling to grocery stores, you may be able to charge $1 to $2 per bottle or a flat rate per truckload or pallet. Most companies make arrangements for regular shipments to establish themselves as “anchor customers.” You may or may not sell your products for a lower price to get these deals, but will generally increase revenue as a result.
How much profit can a bottled water business make?
Profits can range between 100% and 500%, or more.
How can you make your business more profitable?
Your business can become even more profitable by entering niche markets such as flavored bottled water, sparkling water, spring water, and mineral water. Some companies have specialty lines of water, which include flavored mineral water, flavored sparkling water, and sports drinks.
Finally, consider offering designer waters, seltzer waters and club soda, and flavored soda.
What will you name your business?
Choosing the right name is important and challenging.