Message from the CEO Mr Anton Jones
Dear Customers
It is my sincere pleasure to introduce to you;
THE NEXT GENERATION OF WATER VENDING MACHINES
engineered for
GUARANTEED HIGHER TURNOVERS AND PROFITS
by adding value to the water vended.
If you are not familiar with the concept of water vending machines in general, you should read the following explanations for better understanding.
One misconception should be avoided right from the beginning – water vending machines are in no way comparable to any other type of vending machines or vending operations. Water Vending machines are unique, as they are connected to a watersupply ( usually tapwater) which automatically purifies the incoming water.
This means:
A) No products to purchase – meaning your cost is “0”
B) No refilling by hand – the machines fill up themselves
C) Your cash takings basically equal your profits
( less commission for shop owner, where the machine is installed)
In a water vending operation – everybody is on a win-win situation
Customers, who bring their own bottles and containers can now purchase pure top quality water at about half the price of bottled water in supermarkets, the shopowner,where the machine is installed, makes his usual 25 –30% commission for providing a place for installaion, so he makes the same profit margin as on other products. Furthermore the machines will attract new customers to his business, which is important and increases his turnover. And the water vending machine owner is laughing all the way to the bank. He only needs to service his machine maybe once every 14 days, take out the money and let the machine earn profits on his investment without any work.
Water vending machines are also different, as they are equipped with a lot of expensive and sophisticated components, they are medium sized fully automatic water purification plants of the highest order. For this reason they are considerably more expensive then ‘just product vending machines’.
Please read on to understand the history behind this successful concept of water vending, where you can start small with just one machine on a part-time basis and become part of a franchise network, or where you can start your own franchising business in a big way. Other great opportunities are wholesale – retail, distributorship and export.
Since many years, water vending machines have become well established in most states of the USA, especially across the sunbelt states from Florida to California, and also in other countries around the world. The people of Canada, Australia, New Zealand, Guam, the Philippines and Taiwan have readily accepted the concept of water vending. A lot of small and large companies are concentrating on the operation of water vending machines and made it their full time business. Some operators start small with one or two machines and slowly increase their business from a home based business to a lucrative full time vending operation, other operators have become so successful, that they are listed on the stock exchange.
There are now several manufacturers of water vending machines in the USA, as well as now in Thailand, Taiwan, Canada, Australia and New Zealand.
For the operator it is not difficult to choose the manufacturing company that is right for them, as all major manufacturers so far are basically offering just about the same type of product - a coin operated water purification machine for drinking water. Each manufacturer claims certain benefits and advantages, some machines are basic filtration machines only, the better machines incorporate reverse osmosis and Ultra Violet Lights though. Some machines are made with fibreglass cabinets, others are made with stainless steel . Components and quality may differ, coin acceptors, pumps and solenoids are different, and also the prices of the machines are different based on quality and quanitity, but - as the old saying goes - " you get, what you pay for" counts very much. In the past years, manufacturers of water vending machines have tried to improve their products by adding all kind of different electronic gadgets and features, from remote control to computerisation to wireless access. Production was streamlined, so as to reduce costs, new materials and new modern looking designs were used. Everyone tried to make their products more interesting and differentiate it from other manufacturers. But still - the machines' functions are just about the same and all these improvements did not change the bottom line for the vending machine operator.
The water market has been changing though over the last few years and it is time for manufacturers to change with the market.
Over the last couple of years, the consumer has become more sophisticated, other water products have successfully entered the market, and now claim a major share of the water market. Fruit flavoured waters, mineral added waters and health waters with vitamins added, iced tea, lemon flavoured, you name it - it is now there in every supermarket. These new waters offer new opportunities to increase the profits for the vending machine operator with added values. Cold water is another important aspect for the water vending business. People like to drink their water cold and purchase it for immediate consumption, and they are prepared to pay higher prices for this.
Up till now, for a vending machine operator it was not very difficult to make the right decision in choosing his supplier, as basically all machines offered similar features. The decision to purchase from a certain manufacturer was mostly based on:
A) The most favourable price to be negotiated
B) The location and back up service the manufacturer could provide
C) The salesmanship of the manufacturers representative
D) The manufacturing companies' reputation within the industry
As all water purification machines are offering the sale of pure and warm water only, the return on the operators' investment was also about the same for any machine he purchased. Therefore the operators decision to purchase was mainly based on the manufacturers' selling price.
Now for the first time during the WQA show in Las Vegas, our USA-New Zealand company "Arctica - International Water Vending Ltd." has introduced their latest water vending machine, that promises to change the water vending industry. The new "ARCTICA" machine with its cool image logo has been specifically engineered to increase the vending operators profit line and to take advantage of the new product ranges in different waters. The machine, as usual, produces and sells pure water by means of pre-filtration, reverse osmosis and uv light, just like any other high quality water vending machine. It is coin operated with a sophisticated coin mechanism, programmable for any coin or token in any country. Electronic micro controllers make it fully automatic which include R.O.flush and Hot-UV-flush.
But this new machine carries a punch:
It has 4 individual vending buttons that can be programmed for vending:
1) Cold water for immediate consumption
2) Warm water as usual
3) Added minerals, added vitamins, iced tea concentrates, fruit
flavours, syrups or any other concentrates in exact proportions
to the amount of water vended
4) Any quantity and vendprice, from small papercups to large 5
gallon bottles
The sale of cold water, syrups and concentrates add value to the products vended and dramatically change the profit structure for the vending machine operator. (See Profit Proforma - Return on Investment Datasheet and Comparison)
This new machine offers a range of different products for the consumer, who can now choose between different waters. This attracts more customers, broadens the consumer base and makes it also attractive to install in new markets, such as schools and universities, where children can fill up their small bottles with their favourite flavoured cold waters. Health drinks are on the increase, sugar based sodas are out of favour and a lot of schools have already banned sugar based soda machines from their campuses.
The water vending machine operator will be happy with the increase in value of added products, generating higher turnovers and larger profits. The calculations are quite simple. The average sale price of pure water is $0.35 per gallon, with a gross profit of $0.345 per gallon.
The average sale price of value added "cold water" will be $0.50 per gallon, increasing the profit margin per sale to 0.495 or by more then 40%.
And the average sale price of minerals added, iced tea concentrates, syrups or other cordials and health drinks, will be around $1.00 per gallon or $2.00 per gallon with an additional cost factor of approx. $0.20 p.g. for the concentrates. The profit margin of these concentrated-value-added-waters is approx. $1.80 per gallon, thus increasing the overall profits and turnovers per machine by a factor of up to 500%.
This means that a water vending machine operator, who presently averages $5000 turnover p.a. with his machines, can now see his turnover increase to more then $15 000 p.a.
With the advent of these new "Next Generation" Arctica Water Vending Machines, the first consideration for every water vending machine operator will be not to ask of how much he is paying for his machines, but to ask of what is the return on my investment. The price itself is of secondary consideration. The advantage over your competition of selling really "cold water" and value added flavours from your machine will attract more and new customers to your machines and increase your overall profits considerably.
Anton Jones
CEO of Arctica Pure Water
Email: anton.milhar@xtra.co.nz
Tel: +64-(0)7-552-5305
Tel/Fax: +64-(0)7-552-5306
Mobile: +64-(0)21-225-6448
