From bottles to bills: counting water delivery costs

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The global bottled water market is growing exponentially year on year. According to recent market intelligence reports, bottled water is expected to grow at a CAGR of 4.6% over the next 5 years. In 2019 alone, more than 447 billion liters of water were bottled and marketed worldwide, with the United States alone consuming 34 billion gallons of bottled water and generating revenues of 14, billion in retail sales.

This higher consumer demand rendered by steady population growth in some parts of the world, greater consumer preference for healthy, safe and convenient beverages, and growing health consciousness in society, can be summed up with a simple saying – water everywhere. Needless to say, the prospects of starting a water delivery service business are quite exciting.

It is equally essential to understand the initial investment required to launch and operate the business. In this blog post, we take a deeper look at the costs associated with opening the water delivery service and the associated fees.


Start-up costs

Starting a water delivery service comes with a number of start-up costs associated with the infrastructure and resources needed to run a successful business. The costs associated with starting a water delivery service can range from a few thousand dollars to over ,000. Below is a breakdown of common start-up costs for starting a water delivery service.

Article Cost (USD)
Water delivery vehicles ,000 – ,000
Chillers for water storage and distribution 0 – ,000
Water storage tanks 0 – ,000
Office space and equipment ,500 – ,000
Advertising campaign 0 – ,000
Initial water inventory 0 – ,000
Legal and accounting fees 0 – ,000
Technology (software and hardware) ,000 – ,000
Employee salaries and benefits ,000 – ,000
Total ,400 – ,000

It is important to consider the costs associated with maintenance, unexpected repairs and other unforeseen expenses when determining the finances of starting a water delivery service. Additionally, it is important to note that the cost of starting a water delivery service can vary depending on the size and scope of the business, as well as local conditions in the area. Consider researching the cost of purchasing water storage vehicles and equipment in your area to get a better idea of the actual start-up cost of starting a water delivery service.

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Water delivery vehicles

For a water delivery service, the right type of vehicles must be chosen. Depending on the service area and the number of bottles to be delivered, the type of delivery vehicles can range from bicycles to vans and other commercial vehicles. The cost of these vehicles can vary greatly, with new vehicles generally costing more than used vehicles. According to Statista, the average cost of a new three-ton light commercial vehicle (LCV) in the United States in 2020 was around ,000.

Another option for water delivery services is to choose rented or rented vehicles. This option is often more economical than buying a vehicle, and the maintenance costs associated with the use of the vehicle are the responsibility of the owner rather than the delivery service. On average, depending on the length of the lease, the cost of a leased LCV is around 780 to 1,000 USD per month in the United States.

Aside from LCVs, there may also be a need for bicycles and/or scooters. These are generally much cheaper than larger vehicles and have the potential to access smaller areas in densely populated cities. According to an article in Consumer Reports, the average cost of a bicycle in the United States is 0 to ,000 .

Depending on the area and size of business, there may also be the need to consider some type of freight vehicle for larger deliveries. Freight vehicles cost more than regular LCVs, but the cost can be mitigated by buying used vehicles. A used pickup truck in the USA in 2020 was there 20,000 USD.

In summary, the cost of vehicles for water delivery varies greatly depending on the size, type and age of the vehicle. For example, buying a new LCV will cost ,000, while a used pickup can cost ,000. Renting or leasing a vehicle will cost 0-1000 per month, while a bike or scooter could cost as little as 0-3000.

Chillers for water storage and distribution

The cost of chillers for water storage and distribution can vary widely depending on the size, design, and other features of the equipment. On average, a cooler can cost up to 0 , but high-quality, high-quality coolers can be priced at 0 per unit. Additionally, many distributors offer sales and discounts on coolers, so you should be able to find a cooler that fits your budget. A good rule of thumb is to shop around and compare models and prices to find the best deal.

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When purchasing coolers for your water delivery service, you will also need to budget for additional accessories, such as stands and cup dispensers. A stand can start at 0 , while cup dispensers can cost up to each. Depending on your needs, you can also buy an attachment that helps in easy tank refills. These testers typically cost 0 or more.

Finally, you will need to purchase the water tanks themselves, which can vary in size, cost, and design. Depending on your type of delivery service, a tank of water can cost anywhere from 0 to 0 . Keep in mind that the cost of a tank can also depend on its size, capacity, and other features. For example, insulated tanks may hold a large water capacity or made with anti-corrosive materials may cost more.

Water storage tanks

When it comes to starting a water delivery service, water storage tanks are one of the key expenses. A properly sized storage tank can ensure that your customers have a thorough supply of water, regardless of demand. It can also help ensure you have enough water to handle multiple deliveries at once. However, water storage tanks come at a cost.

In 2020, you can expect to pay somewhere between 0 to 0 for a 150-200 gallon storage tank. This can increase depending on the quality of the tank, additional features you may want, and even the size of the tank. If you’re looking for something bigger, like a 500 gallon tank, you can expect to pay over 0 for it.

Additionally, depending on the type of water storage tank you choose, you may need additional supplies, such as pumps, hoses, valves, and hoses. These components can cost between and 0 or more . Some water storage tanks may even require professional installation, increasing the overall cost.

When selecting a water storage tank, be sure to consider the capacity, type of material, and shape of the tank. For example, you may need to choose between a round tank and a rectangular tank. You’ll also likely need to decide on the hardware; Fiberglass, stainless steel, and plastic tanks are all popular options. Finally, consider the purpose of the tank and the type of water you will handle in it.

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Office space and equipment

Opening a water delivery service requires renting office space and purchasing equipment. Depending on the size of the business you are starting and the location, office space can cost between a few thousand to tens of thousands of dollars. The equipment you’ll need will vary depending on the type of service you offer, but may include items such as delivery vehicles, tanks, and coolers. The cost of equipment can range from a thousand dollars to over ,000.

Rental Office Space: According to the latest statistics, the average cost of office rent in the United States is .50 to .00 per square foot, per year. For example, for a 500 square foot office, the cost could be ,750-,000 per year, or 5-7 per month. Of course, this cost will vary depending on the location and size of the office.

Equipment: The cost of equipment depends on the type of service you offer. For example, if you are going to offer door-to-door delivery for 5-gallon water jugs, you will need to purchase delivery vehicles and pre-packaged 5-gallon jugs. It could cost anywhere from a few hundred dollars to over ,000 depending on how many vehicles and jugs you need. You may also need to purchase items such as reservoirs, coolers, and dispensers, which could add additional costs to your budget.

Other costs associated with opening a water delivery service could include licensing, marketing, and payroll fees. It is important to do your research and consider all costs so that you have the best chance of success.

Advertising campaign

An advertising campaign for a water delivery service will be a fundamental part of your overall marketing strategy. Advertising can be expensive, but if done correctly, can pay its way many times over. You need to consider your target audience when developing an advertising campaign for a water delivery service.

The cost of your ad campaign will vary greatly depending on the types of media used, the geographic reach of your campaign, the number of ads placed, and the type of product or service you are advertising.

The following statistics in USD summarizes the cost of advertising:

  • Local radio ads: .00 – per thirty seconds AD.
  • Local TV Ads: .00 – per thirty seconds AD.
  • National Radio Ads: 2.00 – 0 per thirty seconds AD.
  • National Television Ads: 0.00 – ,000 for a thirty second ad.
  • Print Ads: ,000-,000 for a full page daily newspaper.
  • Online ads: .00 – .00 per thousand impressions.
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It’s important to set a realistic budget and remember that the most effective way to get a good return on your advertising investment is to combine various media into an integrated campaign. Also, remember to track the results and adjust your strategy accordingly.

Initial water inventory

When planning to start your water delivery service, the initial water inventory is something important to consider for the successful startup. Depending on the type of business you are setting up, the amount you need for an initial inventory amount will vary greatly. The good news is that there are many options to consider when it comes to getting your inventory in stock, from bulk water purchases to acquiring rented water containers.

Bulk Water Cost

By far the most cost effective way to start your business would be to buy the water directly in bulk. The cost of bulk water purchased from large tankers can vary, with prices differing depending on the grade of water you purchase and your geographic location. Generally speaking, the cost of bulk water delivered by truck ranges from .50 to .00 per gallon. Of course, there are always additional delivery costs depending on your service provider.

Cost of water bottles/containers

If you decide that using water containers is the best solution for your business, the cost of water bottles/containers is something you need to consider. The cost of water bottles/containers can vary from .10 to .50 per bottle depending on the size, type and material of the bottles. You may also need to consider additional expenses such as the cost of labels and other packaging items.

Equipment cost

In addition to the water inventory, you will also need to invest in some equipment for your business. This can include items such as water tanks, pumps, filters and other equipment. The cost of this equipment can range from ,000 to ,000 depending on the size and complexity of the equipment you need.

Delivery cost

If you plan to offer delivery services for your water business, you will also need to invest in a delivery vehicle. The cost of a delivery vehicle such as a truck or van can range from ,000 to ,000 depending on the size and type of vehicle you choose.

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Legal and accounting fees

When it comes to starting a water delivery service, proper legal and accounting fees need to be considered. It is important to remember that starting a business requires legal and financial due diligence, so it is important to understand approximate legal and accounting fees. Depending on your business structure, keep in mind that these fees may change.

Legal fees

Legal fees can vary depending on your business structure. For example, if you choose to set up an LLC as your business type, you must pay a state filing fee. These fees can range from to 0 depending on the state you are filing in and the type of business. For legal advice regarding setting up your business and drafting business contracts, you may need to hire a lawyer and could spend anywhere from 0 to over 0 depending on the complexity of the legal advice needed.

Accounting fees

You may also need to hire an accountant to ensure the accuracy of your financial statements. This cost can range from to 0 per hour for a certified accountant. Additionally, some accountants may charge a flat fee for services such as creating QuickBooks, reconciling accounts, or filing taxes.

Average legal and accounting fees in the United States

According to the latest available data from Statista, the average legal and accounting costs incurred by medium-sized small businesses in the United States totaled ,765 in 2018. This number can vary significantly depending on the size of the business and the services needed. . Also, if you are starting a business in a different country, the cost of legal and accounting services can be much higher.

Technology (software and hardware)

A water delivery service requires a range of software and hardware to operate properly and efficiently. The cost of software and hardware should be considered if you are looking to open a water delivery service.

Software costs

Software costs can vary depending on what you need and the features required. Basic software might cost a few hundred dollars, while more advanced software might cost a few thousand dollars. Additionally, software built and designed specifically for your water delivery service could be more expensive than an off-the-shelf solution.

Material costs

Hardware costs depend on the size of your business and the type of service. A modest operation can cost as little as ,200 for basic hardware such as point-of-sale machines, printers, and laptops. A larger business may require delivery vans and cost up to ,000 or more. For example, renting a van can cost around 0-500 per month in the United States, while a new van can cost around ,000.

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Statistical information

  • Enterprise software: 0 – ,000
  • Point-of-sale machines: 0 – 0
  • Printers: 0 to 0
  • Laptops: 0 – 0
  • Delivery Vans: ,000 – ,000
  • Rental vans: 0 – 0/month

In addition to software and hardware, if you plan to create your own website for a water delivery service, you may need to hire a web developer or use a website building service, which will add additional costs. to your budget. It is important to weigh all the costs associated with running a water delivery service before deciding to start one.

Employee salaries and benefits

When starting a water delivery service, you will need to factor in the cost of employee salaries and benefits. According to the 2020 Cost of Living Index survey, median salaries for all US occupations range from ,160 to ,801 per year. Which covers professions such as supervisors, laborers and delivery personnel.

Assuming you have a team of 5 people in a typical city, the costs for salaries and employee benefits could be around 5,000 annually.

You may need to include additional benefits such as vacation or sick days, employer health insurance contributions, and other costs associated with running a business.

For example, employers generally must pay half of the Federal Insurance Contribution Tax (FICA) (which funds Social Security and Medicare) for employees. As of 2020, Social Security and Medicare payroll taxes combined 7.65% of the first 7,700 of an employee’s salary.

Additionally, other benefits such as health insurance, pension contributions, and overtime pay may be available depending on the size of your business.

  • Social Security and Medicare taxes: 7.65%
  • Health insurance: varies
  • Retirement contributions: varies
  • Overtime Pay: Depends on State


To run a successful water delivery service, you need to consider several costs that go beyond bottled water, coolers, and delivery trucks. This involves a significant upfront cost to purchase the necessary equipment and hire employees, set up an office, and pay the necessary bookkeeping, bookkeeping, and technology fees. Overall, the initial start-up cost can range anywhere from ,000 to ,000 . However, making the right investments up front ensures that your water delivery business can scale and meet growing customer demands, and eventually earn a healthy return on your investment.