Your Business: Water cooler story sparks fresh idea

AlpineFresh founder Mike Tait says globally the in-line water business is growing by 12 per cent a year. Photo / Paul Estcourt

In January 2005, Mike Tait started up his own in-line water cooler company, giving up his position as a country manager in the telecommunications industry.

It all began with an epiphany at the water cooler one day.

"Regularly I would end up replacing the water bottle, realise we had run out and then have to order more. It struck me there must be a better way.

"I found out that although in-line water coolers were available, they weren't promoted because they didn't generate the same constant revenue that refill coolers do through replacements and repairs. I thought it was a fabulous opportunity to move into offering businesses like the one I worked in, a more eco-friendly and convenient option."

With AlpineFresh no-refills water coolers there is one installation and fresh filtered water is constantly available. The system uses a firm's tap water supply and filters, purifies and cools the water.

"The old-style refills water cooler systems still rely on bottles being delivered on a regular basis to business premises by truck, meaning unnecessary vehicles 'bottling up' our roads nationwide, unnecessary staff downtime spent replacing bottles and making orders, and unnecessary storage of empty bottles," says Tait.

The former Equant NZ executive, who employed 50 staff, now has a business close to $2 million and nine permanent staff, plus a network of contractors around the country.

The global in-line water business is growing by 12 per cent a year, says Tait, who believes his company should be signing 1000 new contracts a year. He has around an 8 per cent market share of the business-to-business water market.

"When I first started I had to sell the benefits of water. Most people know the health properties of it now, it's quite an easy proposition.

"I love the water industry. In the telecommunications industry, there were very few happy people," he adds.

One of Tait's biggest challenges has been prospective companies being trapped into term contracts which have been set up to roll over when they come to the expiry date. He has approached emerging companies about forming an organisation which would lay down rules about this.

In his plans for this year, Tait has his sights on growing his operation in the South Island which has been treated like "the poor cousin" by the water companies, he says.

AlpineFresh has been winning a lot of new customers in Christchurch following the earthquakes and in surrounding towns like Rangiora where people and businesses have moved.

When he started in 2005, people would ask him for a reference. "Now I can give you five in any industry," he says.

His customers range from government departments to hotels including the Stamford Plaza, and the InterContinental in Wellington.

Tait sees himself as one of the team. "I can't ask them to do what I can't do. I know how to do an installation and to clean the cooler," he says.

The entrepreneur answers his phones regularly. "I want to know what our customers are asking, I need to be informed."

Having his own company gives him new freedom which he enjoys.

"I love it, there are so many benefits on how I can treat my staff and implement things."

One of his senior staff is a company shareholder and he will offer this to others as the company grows, he says.

The downside of being an entrepreneur is not having people nearby to share your ideas with. He says he would like to have an advisory board in the future.

ALPINEFRESH

* Water cooler company.

* Uses "in-line" system - which filters, purifies and cools tap water - rather than bottle refills

* Started in 2005.

* Nine staff, plus network of contractors.

* Plans to expand in South Island.