Watersorted brings new efficiencies to NZ’s water infrastructure.
With the chickens coming home to roost after decades of under-investment in water infrastructure, a new business-to-business marketplace aims to make the procurement of operational goods and services faster, easier, and more cost-efficient.
Watersorted intends to help make the available dollars for effective management of this key resource stretch further, with less money leaking into sales and marketing efforts, by connecting buyers and sellers online.
The brainchild of water industry figure Jason Colton, Watersorted sets out to solve a problem he’s seen firsthand: “The cost of sales is high, and that means a higher cost of providing the goods and services necessary to keep the three waters – that’s wastewater, stormwater, and drinking water – flowing,” he says.
That’s because selling often involves road trips and the associated expenses of fuel, food and lodging. “There are two annual conferences, too, where sellers can get in front of buyers – but those are expensive. The intention with Watersorted is to become the funnel and the default location where buyers and sellers of all water-related goods and services come together.”
Colton says Watersorted isn’t aimed at big infrastructure projects but targets the operational requirements of local and district councils. These deals are typically under $100,000 in value and are often in the $5000-$10,000 range – and take place somewhat continuously all over the country. “It’s trade in equipment, services, and expertise, as opposed to major capital projects.”
Conceptually, online B2B marketplaces are proven at scale with the likes of Alibaba and Amazon B2B, with many other platforms addressing particular markets, verticals, or countries. There’s a clear and simple value proposition: buyers access a competitive marketplace aggregating sellers and can therefore source the best solution for their requirements from a broad pool.
By the same token, sellers put their goods and services in front of a wide range of buyers, potentially increasing market reach and growing their book.
Colton says Watersorted’s difference from mega-scale B2B marketplaces is its initial focus on New Zealand and a specific niche: “There’s an element of trust in transacting online, so all the sellers we host are verified New Zealand businesses. They’re also generally all transacting in very traditional ways, particularly when it comes to selling their services.”
Which is perhaps perplexing, given the country’s excellent internet infrastructure and the fact most are quite accustomed to buying and selling online. “With Watersorted, we’re giving organisations on both sides the opportunity to connect easily, be seen on both sides,” Colton says, “while accelerating the pace and efficiency of routine transactions.”
It is early days for the platform but Colton has already signed up a number of clients since going live and says several deals have been successfully done. He has a target of 500 within the first two years of operation.
“Market research has indicated there are about 1000 supply-side companies in total, while the 67 district councils around the country are the primary buyer targets - though there are many others, including those on the supply side, who may well transact among themselves.”
Given the straightforward value proposition of accelerated procurement and reduced cost-of-sales, he says the market is receptive. “Suppliers like the idea of a new growth channel and any buyer prefers easy procurement.”
In addition, the Watersorted marketplace is free for buyers, with a range of options for suppliers starting with a ‘test the waters’ free listing, with another three subscription tiers above.
“We want to remove the barriers so using Watersorted is quick and easy, while also helping buyers follow procurement rules,” he explains. “For example, there’s a built-in RFQ system, so buyers can invite anyone or specific suppliers for goods and service they require and get multiple quotes from which to choose.”
Removing barriers extends to sellers, with onboarding made as easy as possible. This starts by registering basic details, adding a description and images, and a Stripe verification – a process not unlike registering for Trade Me or other online platforms. It takes no more than 10 minutes.
More complex organisations might have tens, hundreds, or even thousands of products and services, which will require more effort. “We offer multiple guides, bulk uploading and an option of paid-for support to help customers get their organisation on Watersorted with minimal hassle, and we have an API for those using this service,” Colton adds.
While value depends to an extent on achieving critical mass, he says efforts are targeted at gaining crucial sign-ups of suppliers and buyers.
“Most of the marketing is, of course, digital and, yes, the target of 500 is ambitious. But there is widespread acknowledgment that procurement is too expensive, that smaller deals especially don’t have a lot of headroom for cost-of-sales and that water management must be done better.”
That, he contends, contributes to an appetite for the service Watersorted provides.
Visit Watersorted at watersorted.com