Thursday, August 5, 2010

Is it Still Advisable to Put Water Refiliing Station Business Nowadays?

Is it advisable to put up a water refilling station business nowadays,considering that there are so many existing stations everywhere?

As I have discussed in my previous entry in this blog, safe drinking water is a necessity and since fresh water reserve is becoming to be limited, treating water for drinking application is a must.

Considering our population of 85 to 90 million, the existence of 15 to 20 thousand water station is not enough to serve the demand.

It is a forecast that, time will come, the only means of obtaining safe drinking water is to have it treated.

As years go by,population will continue to grow, thus, increasing the demand for safe drinking water.

There is really, a need for more water station to meet the demand of the entire drinking public. However the manner by which the business is presented, is not designed to adhere the the future needs but on a profit oriented concept.

Presently, if you try to inquire for a water refilling station package, what will be high lighted are the profit, ROI,market expansion.

All of them are the brighter side of the business,but how about the darker side? It was never presented and you yourself will be the one to discover it the moment you operate the business. Sabi nga MABULAGA ka and there’s no way of turning back, so continue ka na lang.

Based on survey,most of the refilling stations that are operating, specially here in Metro Manila survived due to lower operational expenses and minimal sales of 50 to 100 containers per day at the price of 30 to 35 per container.

Water stations having a huge operations, are most likely having big problems in their business. Alam ko marami magreact dito pero realistically speaking, try to rate your operation and see to it, how far have you gone?

Since there is a cut throat competition and the main issue is price, there is no practical way of increasing the profit but to lessen the operations expenses.

That is why as you can see right now, bugbugan ng bugbugan sa presyo and in the end lahat ng water stations apektado.

If this trend will continue to happen, marami station ang magsasara and the preparation to serve the needs of the consumer in the near future will not be successful.

Imagine madagdagan ang population but ang water stations are few because ayaw na nila magtayo kasi di na kumikita.

What should be proper is that, if a water station will be put up today, it will be meant to operate as long as there is a demand for safe drinking water.

Supposedly, the concept of marketing is not to outsmart each other by dropping the price, but it should be services and quality.

Aside from that, water station business is a micro business, some sort of a backyard business, sari sari store and the likes.

If you will try to operate on a small scale basis and territorial, then that is where the profit will come and eliminating cut throat because there is no need to expand your area.

As I am saying,putting up a water station business nowadays is still profitable but not to the extent of becoming a millionaire in a very short period of time. It requires personal management, patience and the right vision for the business.

I know after making this,many will comment, react and contradict my views, but I just want to inform you readers that what I have made is based on my personal opinion, everyone is entitled to his own opinion and this is the very essence of this blog, to inform the readers what we feel on certain issues and concern.

- Orly Shanghai

5 comments:

Unknown said...

"Supposedly, the concept of marketing is not to outsmart each other by dropping the price, but it should be services and quality".

you're right about that sir, eh kaso ung iba proud na proud pa kc cla ang may pinaka mababa na price pero at the end pala wala na kinikita ung station nila... like dito sa amin.. we've been 11yrs na rin sa water station business.. and ang ganda ng price nun nasa 50-60/cont pa.. at ung tao ko noon may 13th month pay pa.. but now sad to say ang hirap na ibigay, kaya kinakausap ko na lang cla ng maayos at ipina intindi ko sa kanila na mahirap na ang business ngayon dahil sa PRICE WAR na yan..

ganito ba talaga tayo ng hihilaan pababa? tayo din naman ang kawawa...

salamat sir orly for this post...

Shanghai-Orly said...

Sir Randy,

Most of the water station owners are not true blooded businessmen,they are beginners in business operations that is why they are not familiar with the important details of business aspects,all they have in mind is to first enter the market and to get a slice of the pie thinking that they can recover or gain later,however,the redemption that they are expecting are not that easy to get because the baseline of their feasibility study is really not that feasible.

I really do not see the logic of dropping the price in order to get a high sales but low profit,it is really not a businessman's approach but good businessmen are forced to adapt in a cut throat battle because the trend dictates them to do so.

It's really survival of the fittest,it is just a matter of style in order to be alive.

May the best station owners win!!!!!!

Migs said...

thanks sa very informative blog nyo sir orly! pinagaaralan ko din po magtayo ng WRS business. can you give me names ng water refilling equipment supplier na highly reliable.

pls email me at miguelitogwapito@yahoo.com

mothergoose said...

Sir Orly,

Agree talaga ako sa inyo. Water business should be a competition on the quality and service coz it's a basic need not just a fad na kelangan mag price war para agawan ng customers. I don't know how the water stations here sa amin in Iloilo survive and maintain their equipment and expenses if they're selling at 10/ container. Nakakakaba kasi baka hindi naman talaga nila finifilter na ang tubig

Shanghai Oriental-Orly said...

thank you for your comment mothergoose.