Veloce - my start up company

[Veloce]

Hello everyone, I would like to tell you about my new start up company and I would like your opinions on it (please be kind).

My company is called Veloce (pronounced velochey) and it is a bottled water company that offers free water to consumers and offers businesses a way to advertise. Each of our bottle labels display four advertisements of locals businesses. The bottles are then distributed to local restaurants within an area of the advertised businesses. Because of the advertisements consumers don't have to pay for the water. And for each bottle a restaurant carries they receive $1.50.

Tell me what you think and if you would like to run an advertisement visit http://www.veloceh2o.com

-Thank you

[Keep3Percent.com]

Cool Idea!

[Veloce]

Thank you. Why should we have to pay for water?

[jdoc]

Interesting concept, although your ad rates seem pretty high for your reach. Why would I want to pay $1.25-1.50 per exposure when there are other forms of advertising that offer much lower costs per exposure (eg. billboards, bathroom ads, etc.)? What is the likelihood of converting someone who's drinking my ad-sponsored water into a customer?

I'd suggest lowering the fees and upping the volume. That said, if you're focusing on smaller towns then maybe the inherent targeted nature of the businesses and clientele make it worthwhile at your current rates. There's no way I'd pay that much in a big city though.

[CP Mr Ofevaw]

That's a $1.5K CPM

I guess if it's a local deal only (limit my campaign to a few local restauraunts), it might be a little more reasonable. I think jdoc is right on.

[Veloce]

Yeah we are currently targeting smaller towns and in our future expansions into other states and in larger cities we will definitely have lower rates for higher volumes of bottles.

The likelihood of converting a drinker into a customer is high. As the consumers are eating in a restaurant enjoying their meal they may see the ad and talk about it in their meal conversation. If they're eating at lunch time maybe they're thinking about what to do for the day and then decide lets go shopping here. Also, most consumers will carry their bottle out of the restaurant with them and drink it as they go about their day, so they are constantly reminded of the ads.

These are our rates:
$1.50 per bottle for 96 bottles (4 cases each containing 24) = $144

$1.50 per bottle for 192 bottles (8 cases each containing 24) = $288

$1.25 per bottle for 240 bottles (10 cases each containing 24) = $300

$1.25 per bottle for 384 bottles (16 cases each containing 24) = $480

[spyro]

I think it is a great idea. I do have to agree with the others on pricing. I'm paying $1.25+ per bottle but i'm sharing the ad with 3 other people? For that kind of money I could probably order my own bottles and be the only ad on there.

[Veloce]

Yes that may be true but how are you going to get your bottles in restaurants with out compensating them at all.

[spyro]

I didn't say abonadon your structure, I just said it would cost a lot to an advertser. And actually, giving a restaurant bottled water is compensation. It effectively lowers the cost of operation and net profits. The other problem I see is that nice restaurants won't want to give a bottle with ads to their customers. This has actually already been done in a way, just not with water. I've seen places with the tray covers filled with ads.

[Veloce]

Yeah we are targeting casual dining restaurants. Most upscale places only serve the expensive brands of water.

[karguy85]

what about airline companies since they are constantly trying to lower their costs? just an idea

[Veloce]

I think you shouldnt be giving $1.50 to each restaraunt. How about giving it to them for free. Or even charging them thirty percent less than other water suppliers?

If we don't compensate them, they will think that they are losing out because we are using their restaurant for free.

[spyro]

I think you are approaching this all wrong. You must convey the message that by giving them bottled water you are saving them money.

[MadDAVO]

Veloce,

This is a great idea. Spyro, I see where you're coming from. But both of you have different point of views here.
Ok I'd be blatantly honest with you here. Lets brainstorm a little here shall we?

Lets just assume that I am small time italian restaurant in the New Jersey area, and have like about on average 35-50 customers everyday. The water that I give out to customers are free filtered tap water that comes with their meal.
Then, one day I heard of your company Veloce that pays me $1.5 for each bottle of water. I then decided that I could give out to each of my customers for free. Then it starts to get out of hand. Employees taking the water for free since its free and im the one getting paid. And customers asking for more of them taking more than 2 at once..
If I am the advertiser, looking at this happen, do you think I will want to invest in your bottles with price like that? No way..

Look, if you can somehow charge the advertiser slightly less, maybe $0.90 for each bottle, so $0.90 x 4 = $3.60 you get from each bottle, and giving $0.60 to the restaurants for each bottle. Therefore, you have $3.60-$0.60 which is $3.00 and maybe your cost of producing the bottled waters are under $1.00 per bottle, therefore you have >$2.00 in pocket. But you need a lot of restaurants taking part in order to make good profit, not to mention your fuel and marketing spent on this company.

This is really a brilliant idea, since I know many people in which water is their preferable choice when they're dining. And, dont forget to hand out like a small poster to the restaurants participating..and make them follow the rule that they should have the poster in their restaurants somewhere, where the customers can see. The poster should state your companies vision: Get a bottled water for free, why should you pay for water? something like that. I swear.. this might get messy.. other reputable mineral bottle companies are not gonna like this. I know one fact: the payout for selling soft drinks are 2 to 1. So if the price of the soft drinks is $1.50, the cost price is only $0.50 for them(its true for Australia anyway) Make sure you adjust the compensation price a bit, so you can prove to the restaurant that your product is profitable to them.
Also, if the restaurants have like a Coca cola fridge or something like that, it is illegal to put in your own/other brands of products in it. So make sure everything is ok, you dont want the restaurants getting in trouble.
Make sure you have a good balance of the pricing.
Selling the product to restaurants wont work because they are already selling bottled waters and as I've said before, the payout for soft drinks, bottled water etc is 2 TO 1. So, selling to restaurants wont work, not even if you're selling for really cheap cause 1st: you cant guarantee their customers will want to buy the product, 2nd: restaurants will want the payout 2 to 1, 3rd: Its a waste of stocking space..since the price is so low.. etc etc..
So stick to your idea Veloce I like it a lot!! Don't work alone.. find at least a business partner.

[Lex]

I would suggest you not aim it at restraunts mainly but instead golf courses, entertainment places, paintball and especially gyms. I know when i play golf and go to the gym i need bottled water!