Reasons for Profitability in Bottled Water Business
The bottled water business has a huge profit margin due to two main reasons:
- Evergreen market
- Consumers worried about health.
Trends Indicating Potential Profitability
If considering a water business, some trends indicate potential profitability:
- Bottled water sales have been increasing over 8% yearly for a decade.
- You can charge a premium for quality water not from the tap.
Profitability of Water Companies
Water is a vital resource, and businesses that provide water services can be quite profitable. The water industry is generally stable and reliable, and water companies usually have long-term contracts with their customers. Furthermore, the demand for water is usually inelastic, meaning that people will continue to need and use water even when prices increase.
Providing safe drinking water at a low cost can also be a business model that is very profitable. Some water projects with this business model are making anywhere from $10,000 to 100,000 per month depending on the demand, population, and pricing structure.
The profit margins in the bottled water industry are high, ranging from 50% to 200%. As more people turn towards bottled water as their primary source of drinking water or look for options to refill water containers from safe sources, buying water from water stores has started becoming a serious alternative to tap water.
Factors Affecting Water Store Profitability
A water store business can be quite profitable. Factors such as location, competition, and operating costs will all play a role in how profitable a water store can be.
Profitability Comparison with Similar Businesses
The bottled water business is profitable and has a huge profit margin when compared to other similar businesses.