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Business idea
Vending machine as a tool to provide consumers with pure, safe and tasty water at a fair price
Why vending?
Rapidly growing market (by +14.4% till 2019)
1 Numbers provided by Technavio
For entrepreneurs
  • Launch of sales in 3 weeks
  • ROI period of 12 to 18 months
  • 30-35% profitability
  • Remote monitoring and management
  • No staff needed
For consumers
  • Safe, pure and tasty water
  • Affordable water (nearly one tenth of the price compared to bottled water)
For the environment
  • Significant reduction of plastic waste (bottles)
Product’s advantages
The business owner receives a free unique software designed specifically for collecting, transmitting and analyzing information from vending machines
The Ecosoft water vending machine is a unique offering on the market with certain advantages in comparison with bottled water, which is the main competitor:
Always fresh, high-quality water as a result of advanced multistage water treatment (no storage, contact with plastic, etc.)
The appealing price (10 times lower than the average price of one liter of water)
Less plastic used due to re-usage of bottles
Convenience of payment (plastic cards, bill/coins of any value)
Ecosoft’s water vending machine offers effective remote management with the main functions of: monitoring of the state of the system, system configuration, sales analysis and P&L, which enables:
To monitor the effectiveness of locations and change them if needed
To solve all problems associated with payment, water availability, etc. promptly and effectively
Implementation
  1. Select the right location
  2. Launch your machines with special promotion 3 weeks is the longest period from your call to our office to your first customer. It includes search for location, paperwork and installation of the equipment.
  3. Serve your satisfied customers Offer water with various mineral content.
  4. Manage your business remotely From any part of the world, with any device you are in full control of operation of your machines.
  5. Grow capacities
Investment and ROI
Installation of 100 vending machines will require EUR 2.2 mln CapEx, it is possible to reinvest EUR 0.2 mln from the net profit earned in the investment period (first 3 years of the project’s implementation).
Cash flow becomes positive at the end of the investment period – in the 36th month after the launch of the project.
Price
EUR 0.10
2-3 times cheaper than in a 19 liter bottle, one tenth of the price than in a supermarket
Locations
One VM average daily sales: 292 liters is reached from the eighth month, on average, after the installation of the vending machine
Number of
vending machines
Total number: 100 machines
The depreciation period of vending machines is 5 years, after this period, the cost of maintaining the machines will increase
Types of vending
machines
KA - 250 and KA - 60
KA - 250 is a more expensive machine, contains high flow membrane element and pump to meet the demand in peak hours.
KA - 60 is a cheaper machine which is appropriate for use in locations without peak loads
Traffic Rental per 1 m2 Sales Optimum percentage
of locations
Shopping mall High EUR 100-120 310...330 l/day 15%
National retail Medium EUR 70-100 270...310 l/day 70%
Market Medium EUR 50-75 250...300 l/day 15%
Stages of project’s implementation:
  1. Start with testing of 25 machines
  2. Testing of installed vending machines for 7 months, until they reach the average daily load. Configuring all processes
    on a small number of machines
  3. Active addition to the network of 16-17
    machines per month
  4. Well-coordinated operation of 425 machines
1-3 years
Investment period
4-6 years
Operating period
The key forecast indicators of the efficacy of this investment offer are as follows:
EUR 2.0 mln
NPV
36%
IRR
4.1 years
DPP
91%
PI

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