The process of setting prices in my WRS in the context of the Philippines is much more than what is seen on the surface. Certain factors affect the price despite the fact that the government sets recommended prices. The origin of the water and the kind of treatment it undergoes are two of the most significant expenses I face. My WRS facility, which operates in a regulated environment, usually has higher costs because of the safety measures that are in place. Hence, I charge higher prices than those facilities that are not regulated, like some stations. Also, there are differences in charges depending on the geographical location and the source of water supply.
The Price War Between Regulated and Unregulated WRS
In this industry, I observe a clear price tussle between regulated and unregulated WRS. As the owner of a regulated WRS, I know that certain rules have to be followed to provide safe water. This includes frequently carrying out tests and inspections to conform to government-set requirements and provide my customers with clean and safe water. However, unregulated stations avoid these rules, and therefore, there are differences in water quality, which could be very large.
However, pricing is one of the most crucial factors that I have to consider, and my primary focus is to supply safe and clean water to the population. Studies have proved that WRSs that are regulated have a higher safety level than those that are not regulated. In my capacity as a concerned citizen of this community, I think it is essential that I deliver quality water.
Water Safety and Unregulated Stations
My regulated station operates with certain procedures and performs microbiological and physiochemical analyses to provide safe water to consumers. However, at unregulated stations, these protocols are not followed, which may lead to unsafe water. One issue I observe is the existence of many unregistered facilities. Although all registered WRS comply with the legal requirements and best practices, many unregistered entities work beyond these standards and pose threats to water quality and safety. This also results in low market prices, thus creating an imbalance in competition.
The Department of Trade and Industry (DTI) and Its Functions
The DTI is also responsible for the price floor of refilled water, such as alkaline, purified, and mineral water. These standard prices effectively avoid the unhealthy competition that is usually occasioned by price competition. However, I noticed that price reductions still occur due to several factors: legal requirements, water supply and purification, competition, and consumer demands.
Green Strategies for Dealing with Price War Issues
Being a WRS owner, I found the Ka-Tubig app to be a rather promising and wholly tailored solution to address the problem of the price war. These tools enable me and my consumers to comfortably buy water from WRS that meets set standards and quality that is acceptable for commercial production.
This is because the market is fully competitive, which places me in a position where I have to employ focused price strategies. This competition makes businesses like mine reduce their prices, which has led to what is referred to as a ‘price war,’ especially among water refilling stations. Another factor that affects my pricing is customers’ expectations since people tend to go for the cheapest products. However, this should help me remind consumers that quality water is more important than the price of the water.
Implementing Sustainable Cost-Cutting Measures
A viable strategy for addressing the current price reduction among Water Refilling Stations in the Philippines is to implement long-term cost control measures that will not lead to the degradation of service delivery. For instance, installing solar panels can save me a lot of money on electricity bills for the next 15-20 years, and this is a good investment for me as a business owner. Also, using environmentally friendly delivery vehicles such as cargo e-bikes that can be charged using solar energy eradicates fuel costs and hence cuts operating costs. In addition, making my staff aware of the proper ways to maintain and fix water refilling machines can save me money from external servicing. These strategies can all together help me reduce my monthly expenses between 15,000 PHP to 20,000 PHP and keep my business profitable and competitive while providing quality services.
Ka-Tubig Solution for a Better Life of the People
To meet these challenges, I believe the Ka-Tubig solution entails selling WRS products through the Internet. All products and services offered by WRS under the Store Management app will be sold in the Ka-Tubig marketplace. My objective is to have the public accept the Ka-Tubig solution as a viable choice for customers and store owners in the future.
Conclusion
Therefore, I believe safety, regulation, and fair competition are critical to the development of a healthier society. Through the Ka-Tubig project, I see it as possible to make water clean and affordable for all the citizens of the Philippines. This is not just a business venture for me but a mission to enhance the quality of life and health of our people and nation.
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