Automatic Tubig Machine to expand via franchising

With the great market potential in the Visayas-Mindanao area, Filipino-owned and operated water refilling and retail firm is aiming for expansion this year through franchising.

"We are targeting 60 more outlets in the VisMin area for ATM though franchising especially on areas that don't have ATM yet," disclosed Automatic Tubig Machine (ATM) Water Venture Corporation Sales and Marketing Manager Gilbert Gabutan.

Since its introduction to the VisMin area two years ago, ATM has reached a total of 160 units, which prompted Gabutan to say "The business itself is good considering the given the achievement in just the two-year span."

He said they are looking for franchisees in big areas like Tacloban in Leyte, Dumaguete in Negros Oriental, Butuan, Surigao, South Cotabato and General Santos in Mindanao. "We would like to provide the people in these areas clean water and at the same time give the entrepreneurs a chance to have business," Gabutan related.

"This will be a low-capital investment and the return of investment can be had after three years or even shorter. For example, you franchised the mother unit. You can generate sales from your own vendo machine and from supplying the purified for the wall type and the portable units, should their tanks ran out of water." said Gabutan.

He added further that the profit margin is almost or about 100%. On a computation of per P1 worth of water dispensed, Gabutan disclosed that the capital is approximately 40-50 centavos only and the remaining can be considered a profit.

The company employs a "vendo machine" concept, giving them and their franchisees the benefit of a 24/7 business. Classified to be a self-service water refilling station, an ATM machine have three faucets - one for the retail of P1 of purified water and the two others are for the P5 denomination.

What they are opening for franchising are the different types of ATM - the portable, wall type and mother units. Both the portable units don't require huge spaces and can be installed at school canteens, public markets and the likes. The mother unit, which is more like a standard water refilling station on the other hand, will require a space big enough to accommodate its 18-stage water purifier system and other pertinent amenities and devices.

"The applicant for franchise should mean business. We don't want to compromise the name of the company and we want to protect the other franchisees too," Gabutan disclosed.

When it comes to the applications. Gabutan said they would evaluate the location first before approving. He added that they would also consider the proximity of the place to the other outlets in relation to the population or the people traffic of the area.

For the after sales support, "We have good after sales services and we have a team of support staff and technicians to attend to the needs of our franchisees."

Gabutan observed that there were a lot who are imitating them and to protect the integrity of their concept and to avoid confusion among the market, the company is processing intellectual property rights acquisition.