Water Business: Franchise or Independent?

Supplying bottled safe drinking water is a booming business nowadays. If you have enough capital, you can either get a franchise of a known water refilling station or go independent and start your own brand from ground up. Either which, you really need some serious thinking but the profits from this kind of business is very promising.

However, franchising or going independent has both their share of advantages and disadvantages.

Franchising a water refilling station can mean capital infusion than being independent. Franchising fees can range from around P800 thousand to more than P1 million depending on the franchise, the space, and the location. On the other hand, being an independent seller can cost an initial investment of around P400 thousand to P1 million, based on the capacity of the tanks and filtering system.

Most franchisees, however, enjoy a head start in terms of starting their operations rather than the independents since franchise programs include management assistance/support in their package. This way, new franchisees are guided on how to start their operations while independents have to commence on their own and rely mostly on their entrepreneurial instinct.

Franchise packages likewise include marketing programs for the franchisees which will definitely help in selling their products. Independent sellers, on the other hand, have to come up with their own promotional scheme to attract their buyers. With a marketing plan clearly laid down, franchise holders enjoy name recall and brand attachment to entice the customers while independent sellers have to be more creative in this aspect to gain a share in the market.

On the other hand, independent sellers have the luxury of setting their own prices. Some independent sellers can lower their prices to P35 per gallon while franchisees could only offer around P40 on the same volume because of the royalties they have to pay, which is based on the quantity they sell. Most franchisees revealed that they could not afford to reduce their prices because, aside from the royalties they have to pay, they are also bound by uniformity in their prices included in the franchise agreement. Independent sellers revealed that lowering their prices is their main marketing strategy, considering that franchisees already enjoy the name recognition from clients.

In the end, whether you decide to franchise or become an independent seller, the water refilling station business is definitely a good investment to venture into. No matter how these stations have grown in the vicinity, water remains to be a basic need and you will definitely have a household or company to supply their water needs. But you must be aware of how stiff the competition has become. Thus, you need to provide quality service to be able to come up with loyal clients.

18 Comments

  1. Danilo T. Cabahug

    I need to know more about water refilling business (independent) particularyly in the area of machineries to be used and its functions and the processes involved. I also want to know the most commonly used machines for this purpose and the minimum capital outlay as a beginner.

  2. maria cristina ilagan

    I need to know more about water refilling business (franchising) particularyly in the area of machineries to be used and its functions and the processes involved. I also want to know the most commonly used machines for this purpose and the minimum capital outlay as a beginner

  3. Marie Paz Fille

    I am interested with water filling station business. Please give me quotation of equipment and other related items.
    Thank you very much.

  4. Manmohan

    need to know more about water refilling business (franchising) particularyly in the area of machineries to be used and its functions and the processes involved. I also want to know the most commonly used machines for this purpose and the minimum capital outlay as a beginner

  5. zenaida henson

    I am interested to Franchise water refilling station….please help me. someone is offering me Aqua 2000 but they’re asking a Royalty fee of P1.00 peso per gallon. I think it’s too high, do yuo have any other recommendation.Thank you very much. Zeny Henson

  6. conrado

    August 25, 2011

    To whom it may concern,

    I have a property that is approximately 2570 square meters and has a natural spring that never runs dry and yields several thousand gallons of pure spring water within a twenty four hour period. The spring starts and is located in my property. I am looking for a company that maybe interested in entering into a partnership with me.

    The property is located along a concrete road that has an access to a major highway in San Pablo City, Laguna, Philippines.

    If you are interested, please write to me at the address below.

    Sincerely yours,
    Conrado P. Nuque
    #30 San Benito
    Alaminos, Laguna 4000

  7. ernie

    I am interested with water refilling station (INDEPENDENTLY) business. please let me know how much capital do i need, and a propose starting machineries or equipment?

    thank you very much

  8. Zaifuddin Md Jizan

    Hi,i am really interested in this water filling business,be it independantly or franchising.Can u tell me more about on how i can start the business?And is it possible for me to venture into this business as i’m not a local.Thank You.

    Regards
    Zaifuddin

  9. George Santos

    I am interested with water filling station business. I want to know the minimum capital outlay as a beginner and machines to be used for this purposes. Please give me a feedback as soon as you read my message to you if you can.

    Thank you very much ang God bless you always.

  10. eddie ruado

    i want to know more about water reffilling business water staion in our area please give me a quotation of equepment and other related items. thank.you very much.

  11. jade

    Hi! I would like to inquire if where can I get the tanks,filtering systems and other materials should I decide to start as an independent player instead of getting a franchise? Thank you very much.

  12. roy

    I am thinking of going into the water station business either as independent or as franchisee. Kindly provide contact numbers of water station manufacturers and owners of franchisor. Thanks.

  13. cynthia napili

    I am interested with water refilling station (INDEPENDENTLY) business. please let me know how much capital do i need, and a propose starting machineries or equipment?

    thank you very much

Leave a Reply

Your email address will not be published. Required fields are marked *