Are you considering launching a water delivery business? Are you confused about where to begin? Then you are in the right place. A bottled water delivery business can be profitable, especially where convenience and health consciousness are highly valued. Awareness about the importance of hydration and the demand for clean and healthy drinking water has increased.
This has led to the expansion of the bottled water market. According to Research and Markets, “the bottled water market is projected to reach USD 457.1 billion by 2028 from USD 311.1 billion by 2023, at a CAGR of 8% by 2028 in terms of value.” This can open up great opportunities for new entrepreneurs to start a water delivery business.
This blog article will help you understand the essential steps and considerations for starting your water delivery business.
Table of content
What is a bottled water delivery business?
A water delivery business aims at providing convenient, clean, and healthy bottled water to homes, offices, and other organisations. The bottled water is generally delivered in various bottle sizes, ranging from small individual bottles to large 5-gallon containers.
This water delivery service generally operates on a subscription or an on-demand basis to fulfil your customer needs.
Water delivery business model – on-demand and subscription
To fulfil the demand of a diverse customer base and enhance your revenue, you can operate using two main business models: on-demand delivery and subscription-based delivery. Both delivery models aim to cater to diverse customer needs and preferences.
On-demand water delivery business
This business model allows customers to order bottled water without making a long-term commitment. It offers convenience and flexibility to the customers and the delivery is done within a shorter time.
Subscription-based water delivery business
This delivery model includes signing up for recurring bottled water deliveries. The customers commit to the long-term, providing a predictable revenue stream and building a trustworthy relationship with customers who value consistency and convenience.
Subscription-based bottled water delivery businesses are the most popular, as they provide a steady income and give customers convenience where they do not have to place the order every time.
Features of Subscription-based water delivery business
- Recurring deliveries – Customers can choose the delivery frequency, like weekly, biweekly, or fortnightly.
- Customization – Customers can choose bottled water as per their preference. This includes the size of the bottle, water type, and quantity.
- Cost-effective – Regular water delivery services often offer discounts compared to on-demand businesses.
Implementation of a subscription-based business model in the water business
- Offer subscriptions – You need to offer subscription plans so your customers can choose among them. You can implement online water delivery software and offer them these plans. You can define delivery windows and make deliveries in bulk.
- Customer portals – Offer a customer interface to your customers for placing and managing orders. These portals include mobile applications – water delivery apps, Android and iOS, and a website. Such an interface fosters transparency and helps turn your business into a brand.
- Automated billing – Integrating water delivery software will automate your recurring billing process. This reduces the chances of eros due to human interference.
Water delivery business ideas
The water delivery business includes steps for a successful water delivery business. These steps include:
Subscription services
- Offer subscription plans (weekly, biweekly, and fortnightly)
- Include bottle size options, like 5 gallons, or 10 gallons.
- Allow your customers to customize their delivery frequency.
Eco-friendly solutions
- Use plastic bottles to promote reusability.
- Implement a deposit system to prompt customers to return empty bottles.
- Use degradable or recyclable bottles. This helps attract environmentally conscious customers.
Technology integration
- Offer a water delivery app to your customers to place and manage their orders.
- Include features like feedback and suggestions
- Use dispensers that automatically measure the water level and replenish it.
Target different markets
- You can offer water testing kits to your customers.
- Rent or sell water coolers and dispensers.
Marketing strategies
- Use features like refer and earn to encourage your customers to promote your business.
- Offer loyalty points or cashback to retain customers.
Health and wellness focus
- Promote awareness about hydration and its importance.
- You can share wellness content on your social media or website.
Special occasion service
- Provide water delivery services to weddings and other social events.
Delivery innovations
- Offer various delivery windows to cater to your customer’s needs quickly.
- Implement route optimization to make efficient deliveries.
Sustainability initiatives
- Digitize your water delivery business to reduce the use of paper.
- Optimize delivery routes to shorten delivery distances and reduce the impact of carbon footprinting due to carbon emissions.
Customer engagement
- Use customer feedback and suggestions to improve your service.
- Offer customized service to your customers to foster customer engagement.
Requisites to start a water delivery business
If you are starting a water delivery business plan consider various aspects, like finances and legal compliance.
Below is a list of requisites to help you launch and run a successful water delivery business.
Planning and strategizing
Figure out your potential customers. In the water delivery business, customers range from residential to commercial.
Legal compliance
Register your business with related government authorities. Get approved licenses, including from the health department.
Water sourcing
Ensure reliable and secure high-quality water sourcing. It should meet all the regulatory standards. Conduct regular water testing and obtain specific certifications from the authorities.
Technology and infrastructure
Implement integrated bottled water delivery software to manage your deliveries. The software automates and streamlines water delivery processes. It includes modules – order management software, payment management, stock management, reverse logistics (empty bottle tracking), delivery management, and reports and analytics.
The software offers three platforms that work together to give you real-time updates:
- The admin panel – The web platform provides a consolidated view of your business. You can track and manage – orders, customers, deliveries, payments, and stocks.
- The customer interface – The customer interface allows your customers to place and manage their one-time and subscription orders. The interface includes – a website and mobile application for iOS and Android devices.
- The driver app – The water delivery driver app provides all delivery information to your drivers, including – order and customer details. It clarifies daily tasks what to deliver, whom to deliver, and when to deliver.
Marketing and sales
Develop a strong brand image. Establish an online presence through a professional website and provide application access to your customers. Use sales strategies to reach your potential customers, residential and commercial. Offer promotions, discounts, and referral programs to attract and retain customers.
Customer service
Allow your customers to give feedback and suggestions. This will help you understand your business flaws, work on them, and provide better service. Offer personalized customer experience to improve satisfaction rates.
Sustainability practices
Adopt eco-friendly practices, like using reusable or biodegradable materials. Participate in community events to promote eco-friendly and water conservation projects.
How profitable is a bottled water delivery business?
The bottled water delivery business is considered to be a highly profitable business. The profitability of any business depends on its management and effective marketing. And the water delivery business is not an exception. Factors, like initial investment, operation efficiency, pricing strategies, and market demand influence profitability. The success of your business depends on thorough market research, strategic planning, and continuous adaptation to market trends and customer needs. You can profit wisely because there is always a high demand for clean and fresh water.
How much does it cost to start a water delivery business?
The cost of starting a water delivery business involves various initial investments. The cost widely depends on the scale of your operation, location, and business model (whether you are sourcing it from a supplier or bottling the water yourself).
You must create a business plan, define a budget, and account for all potential expenses. Secure sufficient startup capital and plan for initial operating costs. It will help you set up your business on the path to success.
Conclusion
The health-conscious and convenience-driven market has made the water delivery business profitable. Implementing technologies, like water delivery solutions ensures efficient logistics, effective marketing strategies, and excellent customer service. You can make your business thrive with proper planning and careful execution, meeting the growing demand for clean, convenient drinking water.
If you are starting your own bottled water delivery business, discuss your business plan to see how we can help you.
He loves to explore. His passion for helping delivery industries in all aspects flows through in the vision he has. In addition to providing smart solution to make delivery process flawless, Ravi also likes to write sometimes to make it easier for people from business industry looking for digital solutions.