Variations seen in the operations of coin laundries, around the country, is the type and kinds of vending found to be effective. Laundry supply sales will be found in almost all laundries. Many will offer candy, snack and cold drink machines. A limited number in the west, southwest and elsewhere, include water vending machines as an additional profit center. Many of those laundries that feature water vending as part of their business have told the News that it is a really valuable part of their profit pictures,

And they are not alone. In this country, bottled water sales has risen to astronomical proportions. It’s amazing to see how much of the space on supermarket shelves is filled with dozens and dozens of brands of water. If everybody is buying all that water, and it’s expensive, then there must be a demand for it in your area.

Water vending machines sell huge amounts of water too. They encircle the convenience stores and groceries. They offer “bargains” in water because customers bring their own containers.

Several years ago, laundry owners here and there began to add water machine vending as an additional service to their clientele. This was most true in the areas of the country where Hispanics concentrated. It’s hard for Americans to imagine, but most of the world’s municipal water supplies offer water that is not up to the proper level of purity, safety and taste that people want. This is represented in the saying when going to Mexic:o. “Don’t drink the water.”

In the west and south western states, a large proportion of the population is of Mexican heritage. They simply have not gotten used to drinking tap water. Bottled water seems to be part of their culture. As a result, they are one super market for bottled water.

Since many Hispanics use coin laundries too, it would seem to follow that a water machine, in a coin laundry with a large Hispanic clientele, might just do well selling water.

There is also a very health oriented portion of our population that feels that there are too many contaminants in the water supply.

Not a surprise that there are a few folks who drink bottled water because it seems to offer status.

Whatever the reasons for it, sales of bottled water has grown to become a billions of dollars market here in the west.

For laundry operators, the question now becomes, can your coin laundry benefit from adding water machines to your business?

 

First, do you really have a market?

There is little if any published data available to those attempting to do market research for sales of bottled water. People in the business seem to instinctively want to keep things to themselves. There are however, tried and true ways to get a sense of what the water market would be in your coin laundry’s area.

First, find someone who sells water machines. Ask them to call on you to discuss the cost and benefits of their water machine. While they are there, pump them, no pun intended, for more information on the water industry.

Let them tell you if your location works out profitably. Of course, take what they say with a grain of salt. After all, they are selling something.

Next., you can conduct your own brand of survey. Go to supermarkets in your area to see how much space they have for water on their shelves. They won’t waste space on things that don’t sell. If they have a lot of water it means they sell a lot of water.

Where are the coin-op water vendors in your area? Are there quite a few? When there are many, it’s a sign that it’s a good water sales area.

Speak with your clientele. Do they buy bottled water? Would they like to pay less and buy their bottled water more conveniently at the laundry?

The last method of research is a little sneaky. Ask a route company that puts out water machines on a percentage basis to look at your laundry. If they are willing to make their investment and pay you too, then your location may be a sufficiently good water vending site good enough to permit your making an investment.

Other basic questions include:

 

How do water machines work?

While some bottled water may be produced out of mountain springs or other natural sources, most water vending machines simply take their water straight from the tap.

Water from local water supply lines is pressure processed through a series of filters in the machine. This removes lead, minerals, most particulate matter and even some bacteria. This creates an altogether different taste and should actually make it healthier and better to drink.

 

What do water machines sell for?

Typical water machine prices range from $8,000 to $12,000 for machines capable of producing some 600 gallons of water per day. Usually, higher prices means more features and should be of better quality.

 

How much space is required?

A typical water vending machine will fit in a space of approximately twelve square feet (3’ x 4’). This space can be in or outside of the laundry.

 

What do costs to install look like?

Outlay for installation varies greatly from location to location, depending on costs to bring electric service, water and drain to the machine location. One will normally need a 110 volt service line to the machine location. Water service is usually 1/2 inch continuous copper tubing, drain line 1/2 inch PVC.

Some experienced operators tell the News that installation costs will run anywhere from $100 to $1000 depending on the distances from the vendor to the water and electric source.

 

What are the costs for operation?

Water machine manufacturers claim that the water and utility costs to produce one gallon of water will range from 1.5 to 4 cents. To that must be added maintenance and parts, as well as depreciation for the vendor.

Maintenance includes the regular replacement of filters, ultra violet lights and other parts. When selling anything that’s ingested by people, keeping a water vendor clean and germ free is critical.

Some operators claim profits of up to 90%, and that makes it a very attractive sideline for some coin laundries.

 

What are the risks, if any?

Several giant companies place vending machines on a percentage basis. In some areas they appear to be pricing the water to discourage competition. A laundry owner needs to know what big guys charge, to see if there is enough room left for the laundry to do well vending water.

Still, it’s possible to sell for about one third of what is charged for bottled water in the markets. That could be a terrific marketing edge to sharp operators. From personal experience, we can not say this will bring more laundry business in the door, but it probably could do that too.