The Cloud, bet you thought that I was referring to that Cloud in the sky, right? Well, I was, just not referring to the Cloud that offers SAAS solutions. I'm talking about the potential for HUGE profits with the REAL CLOUD!
Yes, that cloud in the sky, the one that produces pure, clean water!
Not all dealerships are equal, not all are cut out to offer Managed IT, nor Backup Disaster Recovery or even offer IT services. If you're one of those dealer principals then might I suggest turning your attention to the REAL Cloud to increase additional profits and revenues.
I had a long chat with Scott Hechtman (West Region Dealer Sales Manager at PHSI® Water) the other day.
PHSI is a worldwide leader in point-of-use drinking water technology. Eco-friendly, sustainable drinking water systems that produce better-than bottled water quality.
I was curious about what it takes to become a PHSI dealer. Scott informed me that the buy in was 45 units, you need to have a commercial location (no garages), an installer, some type of a small delivery vehicle and two to three sales people to get started. The sales goal would be for each sales people to move 8 units per month, thus with two sales people, you could potentially place 16 units each month.
The business model is to lease the PHSI water units for $60 per month on a five year lease. Scott also stated that PHSI offers a unique leasing program for their dealers, at the end of the lease the option to buy the PHSI water units reverts back to the dealer. Thus, at the end of the lease, the sales person can go back to the account and offer another 60 month contract for $50 per month. That $50 per month renewal is the cash cow my friends. Imagine having 1,000 of the PHSI water units in the field generating a cool $50 profit each and every month! That's some serious crazy revenue stream that would produce a cool $50 grand a month!
Scott told me about a recent visit to a copier dealer where the dealer stated, "if I would have known about the amount of profit from water units I would have never started my own copier company".
Recently when I'm out visiting accounts, I've been keeping tabs on water units. For the last 30 days in my territory, I've not seen one of the PHSI water units. Wait a minute...., that's not a bad thing but it's an awesome opportunity for someone or some dealer. For those accounts that have old style bottled water systems, it's an easy ROI sale based on knowing how many jugs of water that account is using.
I starting thinking about the other advantages that the PHSI water units offer.
What's the extra value to the end user?
Here's a few bullets that I came up with:
- No longer does the client need to have an employee refill and lift those jugs of water, it's not about the lifting, but more about what happens if an employee is hurt on the job lifting those jugs. The client can minimize their risk with workman comp claims.
- What about the damage that's done when someone drops one of those full bottles of water, it happens, I've seen it, we have a hole in one of our walls at the office from an employee who dropped the bottle while trying to refill.
- It's recommended that the older style bottle water coolers need to be cleaned for every four or five bottles of water to prevent the transfer of germs. Who does that and when was the last time you cleaned your bottle water cooler?
- How about the employee who is sick? They grab the new bottle of water (oopsie forgot to clean my hands), tears off the seal, puts their hands on the neck of the water jug and then inserts the water jug in the system. Their sickness is now your sickness.
- Where does that bottle water come from? Who knows? I'd rather have the water from the tap, knowing that the water has been filtered with the PSHI system.
The business model is simple, the buy-in is nominal, and copier dealers are ripe for adding this type of renewing revenue stream, because we have existing relationships with clients that use our copiers. It's a no brainer for those dealer principals that want to create an additional revenue with minimal financial commitment.
But, there's more! For those of us that may have urge to start our own business, why in the heck would you want to start your own copier business in today's market? Scott mentioned that startup costs would be in between $80-$100k, and that includes the buy-in of 45 units, the cost of the office, the cost of the employees and everything else that's required to get a start up business going.
If I were not so entrenched in this industry and I was not of advanced age, I would dive head first into this business model.
If interested please take a trip here and see how PHSI can make you a wealthy person.
-=Good Selling=-
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