Question About Bottled Water

Discussion in 'Growing and Managing a Business' started by VegasBiz, Mar 3, 2011.

  1. VegasBiz

    VegasBiz
    uix_expand uix_collapse
    New Member

    Joined:
    Mar 3, 2011
    Messages:
    3
    Likes Received:
    0
    Hi there,
    New to the forum and appreciate that this resource is here, thank you!
    I was wondering if anyone might know approximately how much the average mom 'n' pop's convenience store and the average small chain grocery store pay for a 500ml (16.9oz) bottle of spring water and how many cases might they each buy at a time?
    Also, if a grocery store is selling the same brand and size of bottled water both in cases (24 packs) and individual bottles at the counter, do they buy the bottles intended for individual sale at a higher price than the bottles that are being resold in cases? I notice a lot of the 24 packs available in the average grocery store contain bottles with bar codes on them, implying that the grocery store can just tear open the cases of water that they are already getting cheap enough to resell in cases and sell the bottles individually as well?
    Any information would be greatly appreciated.
     
  2. Fergal

    Fergal
    uix_expand uix_collapse
    Premium Member
    Premium Member

    Joined:
    Nov 18, 2007
    Messages:
    10,578
    Likes Received:
    1,163
    Welcome to our Business Forum VegasBiz. Have you a business in Vegas? I've purchased some multi-pack products where the manufactured has clearly labelled that the products should not be sold as individual units. However, I believe that most small stores will purchase bottled water in larger packs and split them for resale. It's difficult to imagine a store paying more for individual units, if they can save money by purchasing multi-packs.
     
  3. Fergal

    Fergal
    uix_expand uix_collapse
    Premium Member
    Premium Member

    Joined:
    Nov 18, 2007
    Messages:
    10,578
    Likes Received:
    1,163
    VegasBiz I contacted someone I know who owns a retail food store, he replied as follows;

     
  4. VegasBiz

    VegasBiz
    uix_expand uix_collapse
    New Member

    Joined:
    Mar 3, 2011
    Messages:
    3
    Likes Received:
    0
    Thank you so very much for your replies and helpful information. I was just not sure whether retailers really do make exponentially more on individually sold bottled water than bottled water that they sell in cases... According to your information, it appears they do! =)

    Another question, if I may... If I have a unique idea for how to sell bottled water (just plain old bottled water, perhaps spring) and it costs me $4 per case of 24 (500ml bottles) to buy pre-bottled water with my own label on them and my intention is for the product to ONLY be sold in individual bottles to the end consumer, do you think it will be possible for me to find retailers that will buy my water at $5 or $6 (maybe more?) per case (24pk) when most grocery stores sell a 24pk of store brand water for $3? At $6 per case the store would be paying me 0.25c per bottle and selling them individually for between $1 and $1.50. The store is still making considerable profit but will I simply be out of luck because they can get other brands of water for considerably cheaper per case or as long as the store is making a decent profit will they be content? At $3 per case the store would be paying roughly 0.13c per bottle... If the product is to be marked up to $1 or $1.50 per bottle, is the retailer really going to be that bothered at paying 0.25c per bottle over 0.13c per bottle?

    As always, any information is very much appreciated.
    Thank you again for your help so far.
     
  5. Fergal

    Fergal
    uix_expand uix_collapse
    Premium Member
    Premium Member

    Joined:
    Nov 18, 2007
    Messages:
    10,578
    Likes Received:
    1,163
    The store owners will be endeavouring to maximise their profits and to make the maximum return possible from every product they sell. It will be extremely difficult to sell them a product at a price that is as high as what grocery stores are selling the same product for.

    The only way that you could conceivably get the prices you are looking for, is by adding so much value to the product through your label, that end customers are prepared to pay significantly more for your product than a competitors. Is there anything about the way you will package and position your product that gives you confidence that you can command a premium price for it?
     
  6. VegasBiz

    VegasBiz
    uix_expand uix_collapse
    New Member

    Joined:
    Mar 3, 2011
    Messages:
    3
    Likes Received:
    0
    I wasn't planning on selling my product at a premium price. Seems like there may be slim pickings for a small-timer in the water market.
    Thank you very much for your input, again.
     
  7. Fergal

    Fergal
    uix_expand uix_collapse
    Premium Member
    Premium Member

    Joined:
    Nov 18, 2007
    Messages:
    10,578
    Likes Received:
    1,163
    VegasBiz perhaps you can find a niche in the market that could work for you, or perhaps you could change the business model a little and say become a distributor for an existing brand.

    Thanks for posting back and good luck with whatever you decide to do.
     

Share This Page