Front first Purified Water ATM, in Kayole, Nairobi
The project is now running for a bit a more than half a year. The proposed business model was to find local entrepreneurs that are willing to co-invest in water purification equipment in order to sell the purified water via purified water ATMs instead of 'bottled'. With purified water ATMs the prices of purified water can go down with 80%, while still offering a good profit margin for entrepreneurs. This is possible because the costs are very much lower: no bottling plant needed, no bottling and bottles needed and last but not least, no excise duties which are very high on bottled water.
There is a lot of interest in this business model, but so far only one entrepreneur has signed a contract. Installation is ready, but we can only start dispensing after being licensed. This is expected around end February 2018. We will then organize field visits for interested parties and try to sign more contracts with more entrepreneurs.
In the mean time we have developed several intesting things/ideas:
- variable prices (depending on the quantity the price per liter goes down, so that the price is always abut 80% cheaper than bottled water)
- purified water will be post-treated with amongst others Silver Colloidal balls to prevent bacteria in bottles/jerrycans to reproduce.
- a full-fledged franchise business model
- a draft market report was published. The results are encouraging.