The first time I bought a 1o liters of water from a water ATM in March of 2018, I realized how the cost of clean water was becoming cheaper. However, back then, these businesses were few.

Fast forward to the present.

In almost every busy street, you can’t walk for a while without seeing a water purification business.

The business is right at the doorstep. And it’s booming. Anyone with the right capital can start it.

As you can tell, there’re a lot of variables unsaid in the above response.

That’s why, in this article, we’re going to breakdown the costs of running the business piece by piece.

In each breakdown, I will share with you tons of invaluable tips so that you can feel comfortable knowing what types of equipment to purchase and with what projected cost.

With that, let’s get into the details.

Which Water Purification Machine Should I Acquire for A Budget?

With the previous tabulation of all the equipment and expenses, I suppose you’re wondering, of the 3 purifications machines, which should you select for your business.

But first, as noted earlier, the figures we have provided above are as per the lowest capacity of a water purifier we’ve found the majority of vendors offering.

If you want a water purifier with a higher output rate, kindly contact a verified vendor for clarifications.

So, let’s get back to the answer.

The answer to this question has two angles to it.

Below is a detailed discussion.

Angle 1. What’s the type of water, Are you likely to get from your supplier?

Here, what you should know is that there is either fresh water and hard water.

Freshwater is water with low impurities in it. It means the water has low fluorides, iron, and suspended solids (Read this article on this subject for your in-depth understanding).

On the other hand, hard water is totally opposite of the freshwater. All the impurities we’ve mentioned are available in the water.

In either case, it will determine the type of equipment you’ll invest in.

As a result, you must know the type of water you’ll get from your supplier to make the right purchasing decision.

So, let’s dive into the purification selection criteria below.

How to select the right water purification machine for the budget.

Why Choosing The Right Machine For A Specific Water Type Will Be Good For Your Water Business?

I know this question might bother you, why all these types of machines?

Of course, at first, I was asking the same question too.

So here is the answer.

How Do You Know The Type Of Water They Are Supplying So As To Know Which Purifier To Buy?

In every town or city, there are certified labs to test water quality. Your first plan of action is to take a sample of your purified water to the lab, pay for the services, and wait for the results.

Similarly, to ensure you get a freshwater supply, there’re KEBs satisfied water distributers. These should be your alliances. They’ve already gone through all the procedures, and they have been certified to distribute the water.

A reliable supplier will help you achieve two things:

If you can’t get hold of a certified water distributor, you will have to get your own water source. As a result, you will have to get the necessary business permits all by yourself to be on the good books of the authorities.

Angle 2. What’s your budget? 

As you can tell from the previous discussion, there’re several factors that will determine the budget of the purification machine you’ll be buying.

Those factors are almost not negotiable. If one variable is missing, it will affect the bottom-line of the other.

However, here is a guideline you can use to ensure your budget stays at minimal as possible.

With that guide, I believe you have a way to determine which water purifier to invest in. Always do your background checkup first to determine the next step.

In the next section, let’s have a quick discussion on how to select a filling station.

Of The 3 Filling Stations, Which Is the Best for The Money?

In this section, you don’t have to worry much about issues like...

...which water type or reliable certified supplier or other technicalities you have no control of.

Here is why.

While choosing a filling station for your business, you have full control over which one to select of the three options in the table.

Here are the 2 main criteria to use when selecting the water filling stations.

Your Budget: Does your capital allow you to invest in an HIGH-END water filling station?

What it means, if you have heavy capital backing your business idea, you’ll invest in the equipment that will give you more value for the money.

However, I usually say, upgrade as you go if your capital is limited.

Don’t be intimidated that your station doesn’t have a high-end filling station. You can always upgrade later once the business gains traction.

So, don’t worry if you start with the manual filling station. It’s slow, but still, it does the job.

Preference for convenience

Here the preference for convenience means:

In any of the above options, what plays a bigger role here is your capital.

With the tips I have shared, I believe you can make better judgments.

However, don’t forget to make further inquiries from your vendor.

Installation Costs: How to Get the Best Value for Your Money.

We won’t delve deep into the specifics of this topic. It is because it’s hard to generalize the cost of installation. And there are also so many variables involved.

But I will share with you a few tips when contemplating installing a water refilling station.

In this case, we’ll group the water installation cost into the following 3 groups.

Costs related to the general shop installations

Once you have identified a perfect location for your business, start taking the necessary steps towards ensuring the shop is ready for the launch.

The following will be the expenses you’ll be incurring in this category.

Of the three costs, renovation expenses are higher and time-consuming than the rest. However, this will depend on the status of the shop. A shop with high renovation needs will require more cash to fix it. The vice-versa holds.

Here, the general rule of thumb is to ensure you hire an experienced contractor to design a high-quality outlook of the business.

The shop should have an outlook that shouts we are clean and friendly.

White color and blues are usually the themes for the business. We generally associate them with serenity, tranquility, and cleanliness.

Costs related to Equipment installation

Mostly, when it comes to equipment installation, most vendors who’ll be selling you the equipment, they’ll offer you free installation service as an after-sales service.

However, if you’ll be importing your equipment or buying the equipment from a vendor who does not offer installation service (which is a bad idea, stay away from such vendors), you’ll have to pay for the installation service.

Costs related to the Branding of the business

At this stage, you’ve installed the equipment, and the shop is ready for the business. But the final piece remaining in the puzzle is the branding.

What you have to do is to contact back your interior designer. This company will come up with a beautiful printout and the theme that goes in hand with the type of business you’re offering.

Alternative, mostly you’ll franchise the business.

So, the company you’ve entered the franchise with will dictate to you their standard printouts for branding your business.

Licensing Acquisition: How To Partner With The Water Distributers For Permit Cost Reduction.

Earlier I promised we will revisit this topic for an in-depth discussion.

Therefore, let’s quickly look into what it means to have your business fully licensed.

First, the current cost for KEBS certification is around 102,000 per year.

As you can tell, the license is costly for a startup.

However, if you partner with a reliable water distributing company, you can use their licenses to cover your business. This is how new traders get into the market despite the high licensing fees in Kenya.

So, let’s have a breakdown of other types of must-have water business permits to comply with the authorities.

The table below shows a full annual business permits costs for a refilling water business

Sourcing The Water: How Much Is The Costs?

This is a huge topic to discuss with the limited stage we’re having here.

However, here we will recommend two options for a small trader:

Water from the municipal council

Generally, this is the water you’ll get from the tap water. Often, you’ll have to have all the necessary licenses to opt for this option.

Still, your landlord owes to agree with the terms of business. Filling a 5000+ water tank twice or thrice a week won’t be something your landlord will simply shout loud, yeah, sure, let's do it.

The good thing with this option, the cost of water will be way too cheap.

However, having noted that, make sure you contact the necessary authorities to ensure that this option is available for you.

If not, you’ll have to consider the next option.

Water from a licensed supplier

The next and the most ideal option for you is to get water from a licensed supplier.

This is the safest and the best option we’ll recommend for you here in BiasharaTalk. The chances of you landing in trouble with the authorities is so limited.

When it comes to the cost of sourcing water, you’re looking for Ksh. 2 or Ksh. 3 per liter.

It’s a fair price compared to the selling price per liter.

But that is a subject to discuss in the topic of profitability.

For now, let's stick to the startup costs.

Other Expenses Related To Starting A Water Business.

Here we’ll briefly look into the category of:

Let’s have a detail discussion on each of the category

Other Equipment Costs

These are equipment like:

Recurrent Expenditures/Others

These are generally your overhead costs as the results of running the business.

As you will notice in the table, I did not include their estimates. It is because they vary from place to place.

Therefore, giving them a specific figure will appear like we are trying to dictate the standard operating costs - these expenses differ from one locality to another. There also other unknown variables affecting them.

It will be prudent to omit them but mention their existence.

So, take your time and do a little bit of research on how much it may cost you to rent, pay electricity, or hire a person in your locality.

You Now Have A Detailed Guide On Cost Of Starting A Water Refiling Station

It’s now your turn.

Make sure you have all the necessary equipment ready.

Your shop is furnished and branded to send the correct message to your prospects.

And ensure you have complied with the authority.

As you know, water is sensitive. Small contamination can be fatal, damaging your reputation, while it provides a perfect condition for you to exit the market.

I bet you don’t want that.

Be honest and maintain the cleanliness of the highest value.

With this guide, I am sure nothing is stopping you from starting your own water refilling station.

Go and get started.

However, if you have a question needing answering, or you noted something we owe to add in the article, share with us in the comment section below. We’ll get back to you with a suitable response.