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Published on August 18, 2007

The slowdown was the result of economic and political fluctuations.

The company will attempt to boost sales by expanding its customer base and offering promotions.

Managing director Suda Dusdeevutikul said yesterday that sales growth during the first half of the year had been normal at 7 per cent year on year, but had become flat in July when compared with the same month last year. The situation persists.

The four-year-old company must get more customers. It rents or sells drinking-water vending machines.

It is moving into selling machines that target lower-income customers with its new L9 model. This is 1.65 metre tall and 68 centimetres wide, smaller than usual, with a capability of 600 litres a day.

It sells for Bt59,000, cheaper than the average Bt63,000. The company offers 15-month instalment at no interest rate.

The size is suitable for small- to medium-sized condominium buildings with 40-100 rooms. With the payment option and usual one-year warranty and after-sales service, the company believes the model will attract many buyers.

Suda added that the lower price would not confuse current customers.

The company will attend the 11th Business Opportunity and Franchise fair at Queen Sirikit National Convention Centre from August 23-6. It will promote franchise for upcountry sellers.

The company is offering existing users the chance to swap their old machines for new ones at a discount.

The company is focusing on penetrating the market in the east of the country. It has sold 1,000 machines there already over the past two years.

It is looking to dominate the Chon Buri market and then expand further in the region.

Suda would not name a marketing budget but did say the market had decreased "significantly" over the past two years. This government has stopped buying vending machines.

The company has few major competitors, although there are small players in Bangkok.

Although the company experienced a slowdown starting in July, Suda remained optimistic the market would revive.

Many people are turning from bottled water to vending machines as a result of lower prices.

There is plenty of room for expansion in Bangkok, Chon Buri and upcountry.

Nitida Asawanipont

The Nation