How To Start A Small Water Refill Station To Make Money

Having access to safe and clean water is one of the most fundamental needs in a community. But in remote and rural areas, community members could be walking or driving a considerable distance and wasting a great deal of time trying to find a good supply of water. This can be a business opportunity for some entrepreneurs.

You can also start a small water refill station as a community-oriented business providing low-cost, treated safe water to households. For instance, you could charge R5 for a 20-litre container, if your water source, treatment and business model meet all South African legal and health-related requirements.

The goal of course should not be to profit from people’s struggles. The most successful business model is one that addresses a real community issue, with water that is safe, reliable, and affordable.

Start by Understanding the Community’s Need

Before you purchase any equipment, check that there is really a need for the service.

Ask the residents what they currently do to get their drinking and household water. For example: 1. How do you get drinking and household water?

How many kilometers do people walk?
How much do they currently pay?
How frequently do households need water?
Are there existing water suppliers nearby?
What size containers do residents commonly use?
What days and times do we need water?

It can provide a simple assessment of whether the refill station will get enough customers.

With many households enjoying easy and inexpensive access to municipal tap water, the business might have to evolve into a different format. In areas where access is less reliable, however, a well-run refill station could prove very helpful.

Water Safety Must Come First

The most important thing is not the price. It is the safety of the water.

Never assume the water is safe to drink because it looks clean. Water may contain chemicals or other contaminants, or bugs that are not visible to the naked eye.

Ensure the source of the water is verified, and that it is treated and tested accordingly before you sell it for human consumption. This could include filtration, disinfection and other treatments, depending on the source.

You should seek professional help about the correct treatment system for your water source instead of ordering equipment purely on the basis of advertising claims.

If it is being sold as drinking water, the business must meet all relevant business requirements and South African drinking water quality and public health standards.

Choose a Reliable Water Source

Much of the business’s effectiveness will be due to the quality and dependability of your water source.

Potential sources could be an authorised municipal supply, borehole or another authorised source. Not all sources, though, are necessarily suitable for drinking-water production.

Should you plan to use borehole water, for instance, it needs to be properly evaluated and tested. The treatment system should be designed to reflect the properties of the water.

You also should think about what could occur in times of drought, power outages, or equipment failure.

You cannot reliably run a refill station if your water source isn’t reliable.

Start Small

You don’t even necessarily need a commercial-sized facility to try the idea out.

It can start on a very small scale using only a few customers and limited production capacity. The size of the plant will be determined by the water source, level of treatment required, regulation and financial capability.

The first thing to check at this stage is whether or not the business can supply water safely and, indeed, just break even.

Don’t borrow in large amounts before you know the demand.

Understand the R5 Model

Imagine you charge R5 for a 20-litre can.

Selling 50 containers in one day:

50 × R5 = R250 per day.

If you operate for 26 days:

R250 × 26 = R6,500 in monthly sales.

However, this is revenue, not profit.

You need to deduct all expenses including water, electricity, filters, treatment chemicals (if required), lab testing, service and maintenance of equipment, cases, cleaning supplies, rental, transportation, licensing / compliance, banking and any other business-related expenses.

The value of this calculation is derived from the fact that if a high selling price is being calculated (a selling price above the true cost of operating the station) this may deter customers.

Think About Volume

A low-cost service usually depends on volume.

If your price is R5 per 20 litres, you will require a considerable number of customers in order to earn a sustainable income.

For example:

20 Containers per day = R100 revenue.
50 Containers per day = R250 revenue.
100 Containers per day = R500 revenue.
200 Containers per day = R1,000 revenue.

These figures are only gross sales. Actual earnings will depend on your costs and operations.

Before pricing, you should: work out your break-even point.

Keep the Water Station Clean

Cleanliness should be a permanent priority.

Cleaning of the refill area, storage tanks, piping, equipment, fittings and spillage and areas around the tanks shall be carried out to the relevant hygienic standards and requirements.

Customers should also be advised to bring a clean container. If the container is dirty it can contaminate the water once collected.

If you are providing container cleaning or sanitisation, set up the correct procedures and use appropriate equipment.

The objective ought to be to protect the water quality from the source to the customer’s door.

Storage Is Important

During periods of high demand or when the source water to your storage is disconnected, storage will assist in maintaining adequate water supplies.

But storage tanks need to be appropriate for use and properly maintained. Storage tanks that are not properly maintained pose risk of contamination.

Seek professional guidance on suitable tanks, plumbing, filtration, disinfection and storage procedures.

Kindly do not manufacture a drinking-water system by putting together unsuitable material.

Location Can Determine Success

Convenience for the community is a key factor for choosing a good location.

The resident ideally should not need to drive a long distance to get a 20-litre container.

You might locate the station close to a residential district, neighborhood shopping district or other easy-to-reach place, if permitted and within the limits of local zoning or municipal ordinances.

4.2 Safety
It is also important that customers are able to access water without any additional risk.

Make Collection Easy

A 20 litre can is quite heavy for the elderly and people with walking difficulties.

Look at the physical arrangement of your station. Your customers should be able to easily fill their containers without lifting or spilling.

In future, it may be possible for you to provide other services, like delivering to nearby homes, assuming the charge for this is incorporated into your existing prices.

Delivery might be another way to add revenue to the business and also support residents who find it hard to get to the station.

Build Trust With the Community

A water business depends heavily on trust.

Customers want to be assured of the safety of the water and that the business operator will be concerned about hygiene.

Be clear about your source of water, how it is treated and whether you carry out tests.

Maintain a neat and tidy place of business. Make your prices visible and attractively presented. Be courteous to your clients.

Your trusted customers will return frequently and will also recommend your business to their neighbours.

Consider Different Customers

Other locals might drive demand, too, even if they aren’t your first target.

Learn the Legal Requirements

You cannot afford to miss out on this part.

Prior to the sale of treated water, research what regulations govern the sale of water in your location and type of operation. Examples include local, city, or township approval; registration or business license; zoning; environmental; health; water-use permitting; and water-quality standards.

The number of requirements may differ according to the water origin and how the water is refined and marketed.

Consult the concerned municipality and expert water-quality specialists before heavily investing in your equipment.

Market the Service Locally

A small water refill station does not need a big advertising effort.

Start with the community.

Place easily visible signage for the service and price. Let the local community know about your opening hours. Use community groups, and get the word out through relevant social media channels.

Your best advertising may be still to come from word of mouth.

By providing customers with a safe, clean supply of water at a reasonable price, they may become your customers on an ongoing basis and be willing to refer their friends.

Keep Business Records

Even a very small water station should keep records of money received and paid out.

Record:

Daily water sales.
Number of containers filled.
Income received.
Electricity expenses.
Treatment and filter costs.
Maintenance expenses.
Testing costs.
Transport expenses.
Other operating costs.

These figures will show you whether the business is making a profit or not.

They may also assist you in identifying busy times and expanding in the future.

Reinvest Some of the Income

Don’t spend all the money if the business turns a profit.

Leave some of it to cover maintenance and repairs and for the unexpected. And some of it is potentially usable for reinvestment in better equipment, storage space, customer amenities or home delivery.

The more a small business gradually improves its service to the customer, the stronger that small business becomes.

Think Beyond Water

After setting up the refill station, you can look for additional opportunities in the community that could be met responsibly.

As an example, you may at some time offer Water Delivery, Container sales or container cleaning (according to relevant standards).

The trick is to start only after the business is functioning well.

The Bigger Community Benefit

A water refill station has the potential to be more than a small business.

If well managed it can reduce residents’ transport and time costs and may provide a ready source of low-cost treated water. If the scale of operation increases they may also generate employment.

For a rural entrepreneur, that might just be a way of solving a community problem while creating an economic benefit.

But never at the expense of water safety for a cheaper price…
Advantages and Disadvantages of Starting a Water Refill Station

Here’s a job that can be a good source of income and fill a real need in a community – especially in rural or remote areas where people find it difficult to get decent, reliable drinking water. A 20-litre container, sold for example, at R5 (where legal and feasible), will encourage continuous customers. It is a business that carries its weight of responsibility, since water quality impacts on health.

Benefits
1. Provides an essential service

Everyone needs clean water. Refills make treated water more affordable for people who struggle to get it and this has to be a good thing as the business is responding to an existing problem rather than trying to generate need for something.

2. Can create a source of income

A water station can also be a good source of self-employment. As long as there are many loyal customers, the business can result in daily income and thus can be an added source of income to the business owner.

3. Affordable pricing can attract customers

A low price, for example, R5 for 20 litres, can make the service affordable for low-income households as long as the price is enough to cover the business’s costs. Low prices are also likely to promote repeat business.

4. Potential for regular customers

Unlike businesses that require infrequent sales, water might be something that can be purchased repeatedly. Customers might come back again and again, and could form a consistent buying pattern.

5. Can support the local community

Residents can save on transport and time, given that an easily accessible refill station is readily available. Depending on the existence of other sources, residents may not even have to travel far to get water.

6. Can create employment

If demand rises, later the business might need people to help with filling containers, cleaning, administration, distribution and maintenance. This can result in more local job opportunities.

7. Opportunity to expand

The successful refill station may, in the future, expand to local water delivery and additional approved water-related services. The expansion should be market-driven and meet a policy or compliance need.

8. Encourages entrepreneurship

The business imparts key entrepreneurial skills such as customer services, budget management, stock and equipment management, marketing, record management and problem solving.

Challenges
1. Water safety is a major responsibility

The greatest difficulty is making sure that the water is really suitable for its use. Water may carry impurities and strains that are not visible to the naked eye.

2. Treatment equipment can be expensive

Major equipment needed, such as filtration, disinfection, storage tanks, pumps etc can represent a considerable investment. The right system depends on the water source and quality and entrepreneurs should always seek expert advice before purchasing equipment.

3. Compliance with regulations

To sell drinking water is not just a matter of putting water into bottles and collecting cash. The operator will have to research the municipal, health, water-quality, business and other requirements that apply. The legal and regulatory requirements could be different depending where the water is taken from.

4. Electricity interruptions

Some pumps and treatment equipment are operated by electricity. Electricity outages could impact on production and customer service. The business might require suitable contingency plans to cope with the situations.

5. Maintenance costs

Filters require replacing, equipment should be serviced and storage facilities need to be appropriately maintained. Neglecting any element of maintenance will have repercussions on the quality of water but it can also impact on the long term profitability of the business.

6. Low prices can reduce profits

Customers may find the charge of R5 for 20 litres cheap but the entrepreneur must consider whether this will cover all their expenses.

For example, if the station sells 100 containers at R5 apiece, the gross profit amounts to R500. But don’t think the owner walks away with a R500 profit – there’s electricity to pay for, treatment, testing, maintenance, labour, transport, rent and more.

7. Demand may be unpredictable

Off-peak periods: Communities may experience periods of time when there are a high number of customers and other periods of time when customer numbers are lower. Revisions to municipal water supplies may also impact on the number of customers using a refill station.

8. Competition

There are other water sellers, local authority services, other boreholes and existing refill stations that may also provide competition for customers. To succeed, the business will require good availability, accessibility, reasonable prices and engaging customer relationships.

9. Hygiene must be maintained continuously

While the treatment device itself may be safe, mishandling can contaminate the water afterwards. Storage tanks, taps, pipes, containers and the immediate environment all have to be kept in good order.

10. Physical demands of the business

A 20-litre container is heavy and it will be hard work to lift and carry large numbers of containers each day. The business will need to have a safe working environment and the correct procedures for lifting and carrying containers.

How to Make the Business More Sustainable

The entrepreneur should start off by making a small community survey before investing their hard-earned cash. Determine how many families would need the service, how much they pay and how far they walk to get water.

Identify the water source and have it tested. Do not buy a treatment system because it is sold as producing “pure” or “safe” water. The treatment system must be matched to the source to be effective.

Finance It is necessary to work out what it will cost to make each 20-litre container. How many containers need to be sold each day to pay for themselves.

For instance, if the total monthly operating expenses are R10 000 and the selling price of one container is R5, the company would have to sell 2 000 containers a month just to break even, before making any profit.

This demonstrates why careful calculations are essential.

Conclusion

A small water refill station is a viable income opportunity for an entrepreneur living in a community where the residents have difficulty accessing reliable clean water is a water refill station. A basic pricing system, for example, R5 for a 20-litre container, will make the service affordable. Only if the numbers stack up after all the costs are deducted.

The first step is to assess the needs of the community. Second, locate a legal, dependable water source, put up a proper treatment and testing system, examine all the regulatory requirements and observe perfect cleanliness.

Begin modestly, track your finances diligently, and concentrate on establishing credibility.

More on selling water
To repeat, most of all don’t forget that you are not just selling water. You are offering a service that relates to their health and wellbeing.

Provided the water quality is good, the price is right, the service is reliable and the business is run properly, there is the potential for a small refill station to be an income stream as well as a community service.

Begin with the problem, safeguard the customer, know your costs and grow the business one household at a time.