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Business idea
Vending machine as a tool to provide consumers with pure, safe and tasty water coming at 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 12 to 18 months
  • 30-35% profitability
  • Remote monitoring and management
  • No personnel needed
For consumers
  • Safe, pure and tasty water
  • Affordable water (nearly 10 times less expensive compared to bottled water)
For 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 proposal for the market with certain advantages in comparison with bottled water as 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 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 state of 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. Pick 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, EUR 0.2 mln is possible to reinvest from net profit of investment period (first 3 years of the project implementation).
Cash flow becomes positive at the end of the investment period – on 36th month after the launch of the project.
Price
EUR 0.10
2-3 times cheaper than in 19 liter
bottle 10 times cheaper than
in a supermarket
Locations
One VM average daily
sales: 292 liters Is reached from
the eighth month, onaverage,after
the installationof 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 more expensive machine, contains high flow membrane element and pump to meet the demand in peak hours.
KA - 60 cheaper machine which is appropriate for use in locations without peak loads
Traffic Rent for 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 implementation:
  1. Start with testing 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