APWS was launched almost three years ago in Los Angeles, California. It currently has about 2,000 units in the marketplace and the number is growing rapidly. Why did you decide to launch the business at this time?
David Glosman: I decided to get into the point-of-use (POU) industry after realising there was high potential to convert bottled water coolers to ‘bottleless’ or POU water coolers. I felt that the POU water cooler would be the leading solution in the water cooler industry, and my experience in the industry has only helped to reinforce this belief.
An apt analogy is what the typewriter was to the computer, or the pay phone to the mobile phone. The simple fact is that, normally, there’s no need to have a delivery man dropping off plastic bottles of filtered water. I like to tell my customers that we do the same thing as the big guys but we’re able to do it within the workplace for less money.
This is possible from a business standpoint because we don’t have all the extra overheads such as factories and delivery trucks. We can promise our customers a lower price and guarantee them that we won’t raise their price due to gas prices increasing or other surcharges due to the cost of business going up.
Which clients do you work with?
Glosman: APWS has been fortunate enough to land accounts such as Sony Pictures, Nickelodeon, Napster, AEG Live, Goodyear, Vans Shoes and 24 Hour Fitness, to name a few. All these companies were interested in reducing their carbon footprint, going green and saving money.
We aim to provide top-of-the-line products at very competitive prices. That’s what gives us the competitive advantage. We don’t charge extra for service calls or installations. Our units provide hot, cold and ambient water, as well as ice-making facilities.
Do you feel there’s real potential for growth in the POU market in the US?
Glosman: We do think there’s a lot of potential. The market hasn’t been saturated yet and there are a lot of growth opportunities for companies like ours if one knows what he or she is doing and has the capital to sustain the growth. There are a couple of big players in the POU industry in the US, such as Quench USA, Coolersmart and PHSI. These are only some of the companies who have had great success in growth over the past 10 years.
How do you maintain customer service levels?
Glosman: Our business model has been to develop a marketing centre and call on companies, educating them on our product line and the benefits of our solution. Once one of our representatives contacts the decision maker, an appointment is set to evaluate what the company needs and fine-tailor a proposal to accommodate to their specific needs.
We have a range of over 10 different water coolers, varying in size and capacity, so we’re able to give the customer exactly what they need and not just what we have to give. Once the perfect unit is determined and the installation takes place, APWS records maintenance and filter changes with a software system designed specifically for the POU industry. Bringing proper technology to this industry is one key in keeping operating costs down.
Where is the company headed?
Glosman: Our vision at APWS is to build a water cooler company that services over 20,000 coolers under contract in the next 5-10 years. We see this happening by continuing to grow organically and by acquiring other POU companies.
One obstacle we’ve run into is that there aren’t too many POU companies out here that are for sale, or doing well enough to be viable for purchase. Only time will tell how fast we will be able to grow through acquisitions. That is why we’re focusing on growing organically by reinvesting back into the company and hiring more sales reps. We believe that with hard work, a strong vision and determination, anything is possible.
Hannah Oakman is editor of Cooler Innovation magazine. Subscribe here.
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