Water Purchase Agreements Are the Key!
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Riggs Eckelberry reports weekly on issues facing the water industry. Here, he discusses how to speed up the notoriously slow water deal — and turn water treatment for businesses from CapEx into OpEx. To hear, watch, and chat with Riggs live, sign up by clicking HERE.
Now, the major problem the water industry faces is the notoriously slow water deal, and we think we have the solution…
Slow, slow, slow.
There’s a hotel deal we did that by the time you read this, we probably will have installed with great testimonials, but our guys worked on that deal for something like a year and a half. Multiple hotel managers, lots of proposals… It was extremely long.
The problem.
What was the problem? It was a big capital expense, and there was a lot of debating and “Yeah, but…”. And then they had to redo their numbers, etc., and eventually they figured it out, but it was rough.
And the problem, of course, was capital. CapEx is a big deal.
Playing it safe.
Number two — and this is an important one for us — is the more important the investment, the more they want to go, “Wow, we’ll play it safe. We’ll go with the big guy.”
The tendency is to go with the “safe bet.” Like what they used to say in high-tech: you can never be fired for choosing IBM. Even if IBM were crappy, you would never be fired.
So, for the innovative solutions, these big CapEx decisions actually work against us and it makes it harder.
The resistance factor.
The other thing is that there’s resistance. “This is not my business. I don’t treat water. Why am I trying to do this?” So, they tend to resist it. They may not have the money or the credit, or they may not want to do personal guarantees and this and that.
The solution? WPAs.
Now, the solution to that is to fund the systems with something called a Water Purchase Agreement or WPA. It’s like what they have in solar, which is the power purchase agreement. You’ve heard of SolarCity. Well, that’s very much the same kind of model, doing water subscriptions with business owners.
CapEx becomes OpEx.
It’s OpEx or Operating Expense, meaning it’s like paying rent. You’re paying on the meter and there’s the water bill. We’re going to pay the water bill, no big deal. It takes a large amount of the stress away. That’s what Water On Demand™ brings.
Reducing the risk.
Normally WPAs work with very long cycles. We’re talking 15 years. If you look at the example of our friends over at Cambrian, they’re putting the system in the ground or bolting it in, which means they have to have the long-term commitment. Well, if we can repossess, then we can have shorter term agreements.
And that reduces risk. You don’t have to be quite so demanding of their commitment and so forth. And it makes it harder for others to do, because the technology we’ve licensed is patented with five excellent patents by our Chief Engineer, Dan Early, and the stuff is good.
Innovators bubble to the top.
Our innovative “pay as you go” offering helps innovators in the water industry solve their water problem without putting in money up front. You could help make this happen by participating in our innovative offering.
Want to learn more? Schedule a call with the amazing Ken Berenger — just click on www.oc.gold/ken. This is how you can help the state of water while also prospering.
Don’t miss an update…
You can hear more stories like the one above and discover the financial benefits of decentralized water when you join me on my weekly WATER IS THE NEW GOLD™ Live CEO Briefing each Thursday night.
You can register for the event by clicking here now.
I look forward to having you join me there. Also, while we’re live together, there will be a chat feature that will allow you to ask me questions directly.
Yours In Water,
Riggs Eckelberry
President & CEO
OriginClear, Inc.
PS: Questions? We’re happy to help! Just schedule a call here now: www.oc.gold/help. Or email us here.
