Bottled Water Experiment
Purpose of Experiment: To prove my make money with no money business ideas can work.Hypothesis: It is possible to take less than $10 in startup capital and make money.
Experiment: Buy a 24-pack of bottled water and sell it on the side of the road. Possibly utilize the labor of pan-handlers.
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Step 1:
I went to my local H.E.B. grocery store the previous night of the experiment and purchased a 24-pack of Dasani water for $5.99.
I put the water in the fridge overnight to let it chill.
Step 2:
Quick Research.
On the way to a party, I stopped to ask a bum what would happen if I sold water by the highway alongside other bums, and it didn't seem like a pretty picture. He told me, "You are a rich college student, and the guy at the corner is trying to get a meal, the hungry guy won't be too happy with you."
To get around this, I wanted to partner with one of the regular bums who knows the in's and out's of panhandling. I made an agreement to meet at 3:00pm with this guy, William Austin to sell bottled water with me. I told him whether we sold all the water or not, I would give him $10 for his help.
The picture didn't come out so well, but in person he was all smiles and very jovial.
I also didn't want to get arrested or fined. A few nights ago I stopped to ask two very courteous police officers what they would do if they saw me selling water without a permit. One replied, "I can't speak for every officer, but personally I wouldn't bother you unless you start causing problems."
So I now had a partner and no real threat of legal action. The experiment was on for 3:00pm on Sunday Afternoon!
Step 3:
An hour before the experiment I bought two bags of ice for $1.29 each. I packed the ice and water into a cooler.
I could only fit 15 bottles in my cooler, so I improvised and put the remaining 8 bottles directly into the ice bags with ice. I then double wrapped them with clean garbage bags for easy carrying.
Step 4:
Withdrew $20 in case I needed change and to pay my partner.
Step 5:
I made this nifty "Water $1" t-shirt by taking on old shirt, turning it inside out (it had a logo on the front) and using a permanent marker to write on it.
I had a feeling this little gimmick would work very well.
Step 6:
Went out to go SELL SOME WATER. I went to look for William Austin at 3:00pm by the local Blockbuster like we agreed. When he didn't show up I asked another bum to show me where he lived. I found him under a bridge, red-eyed and looking extremely tired. He hardly remembered who I was and said he had to cancel on me.
Step 7:
A bit disappointed, I went alone to the highly trafficked intersection of I-35 and Riverside Drive. There I met a bum named Barry:
I've seen Barry before. He is one of the bums that holds funny signs like, "I gave up caviar for Lent" and "I need new wheels for my limo"
I told Barry about my water experiment, and promised to give him $10 for an hour of his time/expertise, regardless of how many bottles he sold. He was more than happy to help. We shook on the deal and became instant business partners!
Step 8:
START SELLING. Barry knew a little about water selling. He told me to hold three bottles at once and start walking down the idle lanes of traffic yelling "Water Water!" Barry put the "Water $1" shirt on and started selling water like a champ! I stood on a different corner in my plain clothes and started selling. My first sale came within 6 seconds of starting (and it was a $2.00 sale!)
In less than 30 mintues we sold all 24 bottles.
Click HERE to see a video of Barry in action. (1 MB video)
Click HERE to see our progress after about 25 minutes. (1.5 MB video)
Step 9:
Tabulate results:
BOTTLES SOLD:
Me: 14 Bottles
Barry: 10 Bottles
So to make a better profit, one would need to: Preferably perform the experiment by themselves, buy cheaper water, buy only one bag of ice instead of two, buy more than 24 bottles.
CONCLUSION: Selling bottled water can be much more lucrative than sitting on your couch on a lazy afternoon!
UPDATE: Bottled Water Experiment Part 2
Labels: Money Experiments
posted by Neville @ 4:08 PM
102 comments
102 Comments:
It will work pretty much like yours except im gonnna take one step further. Stay Turned!
Take a look at the site, keep up the experiments. They are great.
That was an excellent experiment. I can't believe you sold out in 1/2 hour. Wow!
Don't bother "working up the nerve"...JUST DO IT!
Jacob,
Looking forward to your money experiments.
Arbee,
I can't believe the water went so fast either. When I first told Barry about the idea, he said, "You're gonna need a lot more than 24 bottles."
Anonymous,
Surprisingly no one acted in a negative way. I purposely bought only Dasani water so people would be familiar with it, and I was dressed like a regular college student going to class.
Not that I cared all that much, but I did notice some stares and comments. I'm sure the comments went something like, "Why is that kid on the side of the road." I didn't exactly fit the model for the typical bum on those corners. I would also get lots of inquisitve looks when I whipped out my camera or cell phone!
Funny observation: Kids will stare you down and never break eye contact!
*making
A couple of thoughts though:
Your maximum profit minus materials/supplies is $15.43. From the outset, you made a mistake in offering $10 to your partner. That gives him a guaranteed of at least 65% of the maximum profit. Your maximum profit minus labor for yourself is $5.43 and maximum loss is $18.57.
In addition, for the time that he worked, you were paying him almost $20/hour.
I think a more equitable rate would have been $5. That comes out to be 1/3 of the maximum profit (which is the amount of work that he actually does). This also accounts for
(1) the risk that you're taking on in this experiment
(2) the time in planning / researching / purchasing the supplies
The other thing comment that I would add is that you're limiting your maximum profit by stating straight out the price. The value of something is what others are willing to pay for it. From the pictures, it looks like you're selling at some intersection where drivers/passengers in hot weather are a captured audience. I may have set the price at $2.50/bottle and haggled down. Maybe say 2 for $3 or something like that. [This price is geography dependent though] The price should also be tailored to the consumer. If you think you can get more from one person, you should definitely maximize that. In NYC, Dasani water from vending machines are at least $1.50, so that may be why I think your price is too low.
Along the Holland Tunnel leading into NYC, there are always guys out there that sell water and other drinks for upwards of $5/bottle. Sometimes the backup in traffic leading into the tunnels are there for an hour.
Now onto the positive things I saw. The choice in product was great. Basically, at the price that you set, that is a 300% profit margin. There are very few things that you can sell with such a high profit margin.
Anyways, keep up the good work..
Otherwise, great job!
Jonathan@MyMoneyBlog
First, $1 a bottle is too cheap.
Second, you forgot to take income taxes out of your profit.
Third, you forgot to take taxes out for your employee.
In other words, in a vaccum, it is a profitable enterprise. In the real world, maybe not so much.
I think America is the greatest country in the world, and because of all our luxuries, we now have some of the the laziest people in the world too! How quickly we take for granted all the hard work and bloodshed of previous generations to have what we have.
I grew up in America, but luckily I have travelled a lot and have seen how difficult it is to succeed in other countries (I won't even pretend to say I "know" how hard it is, because I don't).
Therefore I know that to get "rich" you really have to just get out there and DO SOMETHING. I'm not all that enterprising, I just realize how hard I must work to make it on my own.
It seems ironic that out of at least 10 people I asked, the only hard-working salesman I could find to help me was a homeless man!!
The pictures and videos are very helpful!
Sell your water, but align your
self with a local charity, perhaps a homless shelter and agree to donate a portion of the proceeds back to said charity
results:
1. You can buy the water tax free
2. the water might be donated by a local distributer
3.You will be able to garnish some very positive PR
4.You make money and make a difference
As the CEO of a nationally recognized strategic consulting firm we call it CAUSE MARKETING
All kidding aside think global and know that your formula will work.
You also prove that with a basic strategic business plan no matter how big or small the venture success can stick.
Job well done...
Know for the sake of being PC call your workforce homeless..BUM is...well call them homeless
and know i did a very similar collaboration with my new book Shut Up and Listen to Yourself as the proceeds are gogin in part to charity...it is available at
www.conceptsinsuccess.com and www.amazon.com
je
Thanks for the post. Another successful entrepreneur I know told me a very similar strategy, I guess great minds think alike!
By the way, what other ventures have you pursued?
I would love it if you continue to visit my site, but more importantly, leave your comments, criticisms and advice!
-Nev
At 35 I feel very lucky to be able to have realized success, but even more blessed to be able to share it and I am constantly looking for new and innovative ways to do so
Your blog is great contact me at
jestrin@conceptsinsuccess.com
and let's brainstorm, I think we could make some magic together and make people stop and take notice!
je
And that home filtration system doesn't make that water "free" either. Although the more water you drink, the lower the marginal cost of that water to you.
What amazes me even more is that bottled water usually is nothing more than bottled tap water.
You'd be making money AND creating jobs for homeless people.
Let's do some back of the envelope calculations (I'll exclude paying :
Variable cost per bottle: $0.35
Price per bottle: $1
Profit per bottle: $0.65
Bottles sold by salesman per hour: 24
(that's ca 2 per minute, one can't sell them much faster)
Profit per hour: $15.6
Minimum wage in the US: $5.15 per hour
As you see this job would pay three times the minimum wage!
This calculates into a full time job bringing in $32,448 per year (8hours*5days*52weeks).
If you priced the bottle at $2, as other commenters have advised, you would gross in a mindboggling $82,368 per year...
There is a small problem, at 24 bottles per hour, you would need 192 bottles per day. You would need some means of transport, which translates into higher additional capital expenditure.
Forgetting about that problem and taking into account only the value of the 192 bottle per day, the necessary capital amounts to a paltry $67,2.
Let's do some back of the envelope calculations (I'll exclude paying the homeless guy the ten bucks and will assume it's a one man company)
I love this blog. often there is opportunity right in front of us. I especially like the empowerment of the homeless man. I would not however call him a bum because that is a derogative term. It's clear that given the opportunity he was willing to become an instant entreprenur and probaly realizes that it beats begging.
It takes a lot of courage to ask someone for help. How much courage do you think that it takes to beg?
It was he that allowed you through his assistance to make money on his turf. You gave him an opportunity and he was astute enough to recognize and take advantage of it. You supplied the seed money and because he knew the market, he also made the most profit.
It takes a lot of courage to ask for help. How much courage do you think is required to beg. Bum, I think not.
http://www.choicechallengechange.com/
I think I would throw a twist on this, though. I would go into a high density pedestrian area, like a downtown area. Much more traffic; less likely to be run over. Besides, that is where all the vendors hangout. The only problem that I see is the vendors. They will likely get pissed if you are taking their potential business, and you have no license.
Very cool. I hope you don't mind, but I linked your blog on mine. Let me know if you'd like the link removed.
http://currente-calamo.blogspot.com
Cheers, Brooke
It sounds like you priced the product too low for the location, weather, etc.
Another $ per bottle would have made $29 profit. Not bad if it sold in one hour.
Without Barry, and with 45-60 mins, and increasing your price 50%, you should have sold all your product with just one guy. Therefore, you gain $10, from Barry's wages, and increasing the price 50% realistically should cut sales 30-35%, so you make the case last the full hour, or nearly so....appx $27/hr.
Additionally, may I suggest one of 2 things have happened. 1) You impacted the bums, or 2) independent of you, someone did this as well. I suggest this, as I bought a sealed bottle at an intersection, exactly as described here, in Austin, on the other side of town, and I have been offered water on several occasions, when I did not buy.
you broke the law right of the gate
-big brother
Work done by necessity vs by choice often produces very different results, and its obvious Nev understands this thoroughly.
I think such as experiment should be undertaken by myself and others to get 'back to basics' and think about the fundementals of being an entrepreneur.
-thanks Nev, what's next?
Health Forums
Good job helping the bum too. That's the best part.
It definitly is an interesting business!
Full circle or hampster wheel? I mean 'carrying water'..... now where have I heard of that before? letmethink, letmethink ummmmm ....oh yeah, I remember! The Ages, the Eons, the Millennia, the plight of humanity the deprivation, the drudgery of .... 'carring water'. Until PLUMBING! (YEAAAAAH! WHOOOOPPIE! HOORAY and HOZANNAS!) Until .... 'BOTTLED WATER'. (AAARRGH! UGH! OOOPH!) OK, so I don't like bottled water ( inane concession to the joy and necessity of water + the realities of modern life) but, Neville, what a wonderful idea and intriguing concept. I just need to think of a commodity more suitable to my notions.
clewis
One way to increase the profits might be to sell advertising to local businesses. You noted that you bought brand name water on purpose. On the side of the bottle opposite the brand name label you could attach printed up advertising. Maybe blocked out with multiple advertisements on each bottle, like your pixel sales on the homepage.
The customer is now going to be staring at the advertisement until they find a trashcan to throw the bottle away in. And they're probably not going to find one for a while since they're driving. Another captive audience just like your urinal ideas.
And to get the local business even more exposure to the prospects, you could attach ads to your "Water $1" shirts.
They took your concept, and made it global. They made super-water though, and you can sell subscriptions and make a lifetime comission on a heckload of levels. if you want to make some serious money with water, easily, THIS IS WHERE YOU NEED TO GO.
Nev, please contact me if you need any help with the website, im so certain you will like the opportunity, i am willing to help you with every step of the process if you need it.
Look at the product, the company profile, and a video, and you will see its the most incredible thing ever
www.xoomaworldwide.com/naturalstores
just been googlin on the charity water front and spotted your little experiment. good effort my son, get out there and do it. i've been thinking on the lines of a brand of waterr with the charity profit built into the price (just found the 'euphoria water' site which is knid of the same idea .
maybe there is something in the combination of both concepts , add that to something that's well desinged and got a few well meaning celebs behind it and the world's getting a favour.
ps not overy impressed by how many comments are purely looking for profits , but then they have probably been raised the american way.
anyway geezer , nice one
#29 uk
I just happened across your blog and read your Bottled Water Experiment post. This is great.
In my city, selling water at intersections is more like a religion. Therefore as some would suggest selling for $2 or more wouldnt work here. You have to go with what the market dictates. And besides, I feel selling bottled water for more than a buck is gouging.
I really like your guerilla approach. Here are some other ideas to consider:
As someone suggested, you could make your own ice. When my father would take road trips, he would fill up empty milk cartons with water, freeze it and break the ice up. Voila! If you know of anyone on a fixed income that receives food stamps (theyre not hard to find if you're in the right food market during the beginning of the month), the may be willing to purchase the water for you at fifty cents on the dollar. You could buy twice the water for the same price. And this is definitely a DIY project. If you do hire someone, consider paying less than you paid Barry. Also please stop reffering to those individuals as bums. That's so not PC.
If you were going to do this on a long term base, you may want to invest in some of those aprons with the pockets and print your price or message on it. You could wear it or the help. That would make you look a lot more legitimate.
Thanks for the post, I'm bookmarking this site.
Peace,
Mike in Bmore
this is awesome. If you think you can get more from one person, you should definitely maximize that.
http;//www.kredyt.01234.info
http://www.danceandsing.com
I liked the way you earned $5.43 in just thirty minutes with little bit of capital.
and thanks for the ideas it eally help me. Good job!
i know every famous person show their talent like some different as like u.
i hope one day we'll see as a owner of worlds largest bottled water industry.
best of luck.
Read My Blog I Did The Same Experiment That He Did But I Made More Money. I Thought About It On A Bigger Scope
i did the same experiment everyone check out my experiment and tell me what you think!
I have noticed a tendency from some of the posters to either criticize you on the legality of the set up, or about the word bum and what it means. Most of the people here who are downing you for the use of the word only say so because of the idea that it isn't politically correct. I feel this is unwarranted as the word itself is only given meaning by the intention behind it.
Just keep up the good work and don't let the naysayers get you down.
www.chickenmonkeydog.com
~Lisa
-mhscheid@gmail.com
Jon
Student Athlete Guide
http://www.studlete.com
So I thought what was the next hottest way to make really good money fast. You have probably seen the news reports about the chemicals leaching into our bottled waters regardless of what brand or type. This creates fear in the minds of 10s of millions of people.
Also I read a book called "Your Bodies Many Cries For Water" which was written by a well respected doctor. He said there are so many diseases associated with chronic dehydration and not drinking enough water each and every day. I became so convinced that I was chronically dehydrated because of the many ill symptoms I experienced that this doctor talked about in the book and started to drink a lot more water like he recommended.
I became very concerned and scared about the water quality with bottled waters. The news reports about toxic chemicals leaching into the bottled waters frightened me. I spoke with my family and friends. Everyone I spoke with expressed that they were scared as well.
I decided to use the water from our sink for our daily water needs. But then I heard news reports that toxic drugs and toxic medications and toxic chemicals were found in like all over the U.S. drinking water supplies. So I did some research and found a really interesting Solid Carbon Block water filter. It was independently tested by (NSF) a non-profit organization which found it to be a superior water filter solution. I was amazed to find out that this water filter was inexpensive compared to all those bottled waters I used to buy.
I found a video on YouTube that gave a users review about it. The title was "Bye Bye Bottled Water" and was produced by MyNewLifeCoach. I called my family, friends, and everyone I know from work and spoke with everyone about this video. I am so inspired that I have a whole house filter and a portable water filter on order. I also found out that for only a one time fee of $10.00 I could easily become a National independent distributor and make a good residual full or part time income for just $10 dollars.
I thought about selling water on the street to make some good cash fast and maybe I will do this. Then I thought about the labor and time involved with this so I decided to give this a go. I thought for only few dollars and wow I have my own way to make residual income for a lifetime. It was a no brainer for me and signed up.
Here is the YouTube video that got me inspired, hooked, and convinced to do this. Note: the video does not mention anything about becoming a distributor. I found out after I called the company 1-800 number. http://www.youtube.com/watch?v=GKUhANhGEsg
The funniest thing about your expermint is that about 50% of the people posting became so EXTREMELY OFFENDED when you used policitally incorrect terminology for "homeless people" by calling them "BUMS". It's great because most people are more concerned with defending Political Correctness than they are with making an honest living. This is why so many people end up working at places like McDonalds for decades at a time. Anyways...
I stumbled across this blog because I have noticed that where I live, many people make a good living by doing this... Illegaley. As mentioned in some of these posts, You can't legally sell retail cases of water individually, but many companys DO sell wholesale cases that you can sell legally. Next would be things like food, business & vending licenses and the most illegal and rotten of all, giving the mafia their cut (TAXES). To do something like this LEGALLY in the "Land of the Free" (HA! HA! HA! LOL!), You would need several businesses licenses, health permits, written permission from a land owner (you can't sell on public property without a permit), etc. I seriously wouldn't recommend that a person on parol try this experment. Always remeber that the U.S. has more people in prision that any country in the world. They always leave the light on for you here in the "Land of the Free".
Some questions for somebody seriously considering doing this legit would be:
"What would the fine be for doing something like this if I got caught"?
"Would it reasonably be cheaper and more cost effective to just keep doing what your doing and pay the fine if and when you get caught, just as companys like Walmart, Standard Oil, etc. do, or would it be more profitable to get all of the permits, etc.?
I have recently been considering starting up a hotdog cart with my father and believe me, it would probably be easier to get a nuclear power plant approved. Ever wonder why you don't see many hot dog carts on the west coast? It's because of the Health Nazi's. Mobile food vending is enforced with an iron fist by the health dept. and California is the strictist state in the U.S. for mobile food vending. So my main question is...
LEGAL OR ILLEGAL ?
I'm sure that there are a few people out there who have done this sort of thing before who may be able to share the pros and cons of each way. What do you recommend? And tips or info would be welcome.
Thanks
Sarah
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