ATM for water, not cash

The business name, Automatic Tubig Machines, invariably brings smiles to the listeners’ lips; more so, its acronym, ATM.

"Our machines dispense water, not cash," said sole proprietor Teodulo Bergado.

ATM, which was initially registered with the Department of Trade and Industry as ATM-Ber Aqua, fabricates water-dispensing or vendo machines that are plugged to regular faucets. Tap water then goes through 16 filters inside the vendo machine before it is automatically dispensed after a P5 coin is inserted. A P5 coin is good for a gallon of water.

"We are now tinkering with P1 coins which would dispense one cup worth of water. Because we sell water, the machines do not accept paper bills nor are they able to give out change," said Bergado.

Beginnings

ATM was started in 1999 when Bergado returned home.

"I used part of my savings as an overseas worker to put up a regular water station. Right across, I saw my neighbors, who couldn’t afford to buy my water, hauling water. That was when I decided to revive the blueprint of a vendo machine that I built while working as an electrician in the United States. I used what I learned working in a water treatment company and built my first machine using junkshop parts from an elevator, a washing machine, and other appliances," said Bergado.

Located right beside Bergado’s regular water station, the first ATM began to attract customers because the price of water sold was significantly cheaper and the service was open 24 hours a day, seven days a week.

"Customers benefited from the savings of operating a vendo machine. The space requirement for a machine is very small. We didn’t have to pay for the salaries of at least two employees. There were no bottles to wash because the customers brought their own bottles. Electricity cost was down because there was no air-conditioning or electric fans to keep the workers cool," said Bergado.

ATM put up four company-owned machines before borrowed P1.4 million from Small Business Corp. last year for its expansion program.

Franchising

ATM currently employs 22 workers to fabricate the machines. To date, it has sold 63 vendo machines, 55 to franchisees.

The investment cost per machine is P330,000 in Metro Manila, going up to as high as P400,000 for locations in Mindanao. Priority locations include subdivisions, public markets, schools, hospitals, and sport facilities frequented by B-C income markets. Average daily gross sales per machine is P800 for net sales of P650.

"We prefer to locate the machines right across a sari-sari store. We give the store owner a monthly allowance of P500 to keep an eye on our vendo machine. The store owner also indirectly benefits from our business. Often, our customers need to break their money to get the needed P5 coin and they buy something from the nearby store," said Bergado.