momoglobal · investigation stage · july 2026

Water Filtration Supply — Centurion

Landscape analysis, demand data, China sourcing economics and margin modelling for a filtration supply business serving residential, commercial and trade channels in Centurion and greater Tshwane.

Brink Olivier · brand, sourcing, ecommerce Duncan Hayward · sales & installation Mario Nell (E2W) · China sourcing Financed via Momo Global
Verdict
Proceed
On filters. Not on AWG.
Blended GM
66.1%
60:40 retail:trade, modelled
Order 1 capital
R677k
20ft, landed — agreed
Demand
~36,500
monthly SA searches, de-duplicated
Import duty
0%
HS 8421.21 & 8421.99.90

01What the numbers say

There is a real business here, but it is not the business we assumed when we started. The money is in consumables and mid-market residential filtration, sold nationally through ecommerce and locally through Duncan's installation capability. Atmospheric Water Generation is a poor fit for the Highveld and should be treated as marketing, not revenue.

Five findings that shape the plan

  1. Cartridges are the business, not the systems. Consumables are 21% of capital but 37% of revenue at 82% gross margin. Systems are customer-acquisition; cartridges are the annuity.
  2. "We import from China" is not a moat. Puritech already sells Runxin valves, Vontron membranes and FRP vessels — they are an importer too. The edge has to be brand, service and installation.
  3. A 20ft is the right first container — agreed and locked. At R500–750k the natural volume is ~31 CBM. A 40HQ only becomes freight-efficient at roughly R1.3m of stock.
  4. Local search intent is thin; national intent is not. "water filter centurion" is 20/month. "water filter" is 6,600. This is an ecommerce business with a Centurion service footprint — not a local-SEO business.
  5. Commercial demand is not searched for, it is sold. "restaurant water filter" is 10 searches/month nationally. That channel is Duncan knocking on doors, not Google Ads.

Recommended shape of the business

Three channels off one inventory pool:

  • Ecommerce (national) — the volume engine. Under-sink RO, whole-house, shower and tap filters, plus a subscription cartridge programme.
  • Installed residential (Centurion/Tshwane) — Duncan's margin layer. Higher ticket, borehole and tank treatment, whole-house systems.
  • Commercial & trade — restaurants, coffee shops, guesthouses, plus wholesale to other plumbers. Lower margin, far stickier, contract-based.
The strategic bet

Own the replacement cartridge relationship. Whoever installs the system controls a 10-year consumable annuity at 80%+ margin. Sell the system near cost if you must — win the annuity.

02The structural problem in Gauteng

This matters because it determines what we sell and how we talk about it. The honest version of the Gauteng water story is more useful commercially than the scary version — and it is defensible if a customer pushes back.

The core insight

Gauteng does not primarily have a water quality problem at the treatment works. It has a distribution and continuity problem between the plant and the tap. Rand Water's bulk supply is generally compliant; the failure is in ageing municipal reticulation, leaking reservoirs and intermittent supply. That distinction is the entire product strategy.

What is actually going wrong

Structural failureEvidenceWhat it createsProduct we sell
Ageing reticulation & pipe bursts Johannesburg Water recorded 16 pipe bursts in six days; 43 structurally leaking reservoirs, estimated R1.3bn to repair Sediment, rust and discolouration at the tap after every repair and re-pressurisation Point-of-entry sediment filtration (Big Blue 20")
Intermittent supply / outages Rand Water major maintenance 29 May–2 Jun and 17 Jul 2026 across Joburg, Tshwane, Ekurhuleni Pressure loss → back-siphonage risk; households install storage tanks Tank inlet/outlet filtration + UV
Storage tank adoption "jojo tank filter" 210/mo, "water tank filter" 390/mo Stored water goes stagnant, grows biofilm, collects roof debris Tank kits: pre-filter + UV steriliser
Municipal financial collapse Joburg losses R2.4bn/8 months; Tshwane ~R1.9bn/yr; Rand Water demanding a R2bn+ deposit No capital for repair → the problem compounds and is not solved within our planning horizon Justifies the whole category long-term
Borehole substitution "borehole water filter" 720/mo, "borehole water purification system" 170/mo Raw groundwater: hardness, iron, nitrates, bacteriological risk Multi-stage borehole treatment trains — highest ticket
Hard water & scale "limescale" 590/mo, "hard water" 480/mo, "water softener" 590/mo Geyser, kettle, espresso and ice machine damage Softeners and scale inhibitors — the commercial wedge

Sources: Johannesburg Water / DA infrastructure statements (Feb–May 2026); Rand Water maintenance notices; Daily Maverick, IOL, Engineering News (2026); Blue Drop 2025 via DWS/PMG; search volumes from DataForSEO, Google Ads, South Africa, July 2026.

Be careful how we market this

The Blue Drop 2025 assessment found metro drinking water systems generally performing well, with low-risk systems improving from 60.2% to 61.9% nationally. If we run "your tap water is poisoning you" messaging in Centurion, we are factually vulnerable and it will eventually cost us credibility and possibly an ASA complaint.

The defensible pitch: "The water leaving the plant is fine. What happens in the 40-year-old pipe between there and your kitchen is not — and neither is what happens in your tank when the supply goes off. Filter at the point you actually drink."

03Demand — what people are actually searching

Pulled live from DataForSEO (Google Ads data, South Africa, English, July 2026). These are national monthly search volumes.

Methodology note

Google groups close variants at identical volume — "water filter system for home", "home water filter system" and 18 other phrasings all report 3,600. Summing the raw list inflates the market roughly 4×. The figures below are de-duplicated to distinct clusters. Treat ~36,500/month as directional, not additive.

Top demand clusters

water filter / filters
6,600
reverse osmosis
6,600
home water filtration
3,600
water purifier machine
3,600
water filter system
2,400
puritech (brand)
2,400
reverse osmosis filter
1,900
water purifier / purification
1,900
tap / faucet filter
1,300
shower head water filter
1,300
reverse osmosis system
880
water filter jug
880
borehole water filter
720
water softener
590
limescale
590
water dispenser filter
480
hard water
480
water tank filter
390
whole house water filter
320
atmospheric water generator
320
jojo tank filter
210
water filter centurion
20
restaurant water filter
10

The brand signal

"puritech" = 2,400/mo at $1.96 CPC. That single branded term is bigger than almost every generic product category. It tells us the market is brandable — people search for a trusted name, not a spec. That is the opening for a well-built brand.

The sleeper

Shower filters: 1,300/mo at $0.54 CPC, and almost nobody in SA merchandises them properly. FOB ~$3.80, retails R279–420. Tiny CBM, high margin, perfect ecommerce basket-filler and gateway product.

The warning

Local terms are dead. "water filter centurion" is 20/mo. Do not build the plan around local SEO. Build national ecommerce, and use Centurion proximity as a service and trust advantage, not a traffic source.

Source: DataForSEO Google Ads Search Volume API, location South Africa, language en, retrieved 28 July 2026. Raw dataset: research/data/keywords-za-core.json (59 terms) and keywords-za-longtail.json (461 terms).

04Product solutions we can supply

Six categories, mapped to the problem they solve and the channel that sells them.

CategoryWhat it isSolvesChannelSA retail
Consumable cartridges PP sediment, CTO carbon block, GAC/UDF, T33 polisher, RO membranes, 20" jumbo Everything. Every system needs them every 6–12 months All three — subscriptionR89–R650
Under-sink RO 5-stage 75GPD w/ tank; 6-stage remineralising; tankless 400/800GPD Drinking water taste, TDS, chlorine, dissolved solids Ecommerce + installedR1,999–R11,290
Point-of-entry Big Blue 20" 2/3-stage whole-house, brackets, pressure regulation Sediment and rust after bursts; protects geyser and appliances Installed (Duncan)R2,760–R4,200
Tank & borehole UV sterilisers 12GPM, auto-backwash multimedia, softeners (FRP + Runxin valve) Stored/stagnant water, hardness, iron, bacteriological risk Installed — highest ticketR5,500–R14,442
Commercial 400GPD / 1600GPD RO, scale-inhibitor heads, ice & espresso filtration Limescale destroying equipment; consistent product quality Direct B2B contractsR2,400–R14,000
Retail / impulse Shower filters, faucet-mount, countertop gravity units Low-commitment entry; skin/hair; renters who can't install Ecommerce onlyR279–R1,800
Product decision

Lead the range on under-sink RO and whole-house sediment — that is where search demand, price tolerance and Duncan's installation skill all intersect. Carry softeners and borehole trains as high-ticket installed work. Use shower/tap filters to build the email list and cartridge subscriber base cheaply.

05Competitive landscape

The market is wide open in the middle. There is a credible budget end and a credible premium end, and a large, poorly served gap between them.

PlayerPositionRO price bandRead
PuritechCategory leader. Vast catalogue — components through to full bottling plants. Sells Runxin, Vontron, Canature R138 – R414,000 Strongest brand (2,400 branded searches/mo). Also a China importer — so no sourcing moat against us. Broad but industrial-feeling; weak consumer brand experience
BWT (was H2O International) h2o.co.za now 301-redirects to bwtshop.co.za — absorbed into the Austrian BWT group. Ecosoft product line. Gauteng + Cape Town offices, franchise model R3,995 – R11,290 Watch this A multinational has just bought into SA retail filtration. They will professionalise and out-spend. Premium anchor — good for us, we price under it
Little LuxuryBudget/DIY ecommerce. 6-stage RO at R1,999 R1,999 – R2,599 Sets the price floor. Competes on price alone; no installation. We beat them on service and trust, not price
FilterShopCustom systems, camping/outdoor range MidAlready serves the outdoor/portable niche — relevant to the overlanding question
Local Centurion R&MPlumbers fitting whatever the wholesaler stocks n/aOur trade channel These are customers, not competitors. Duncan already knows them
The gap, precisely

A 6-stage under-sink RO sells for R1,999 at Little Luxury and R7,695 at BWT. Same fundamental technology, ~3.8× price spread. Nobody owns the R2,800–R4,000 installed-and-supported position — a properly branded system, professionally fitted by Duncan, with a cartridge plan. That is the space to take.

Geographic gap confirmed: the nearest affordable competitors are in Midrand and Hartbeespoort. For installed work — where the customer wants someone to physically arrive, fit it, and come back in nine months to change cartridges — a Centurion base is a genuine advantage over both. It is worth nothing for ecommerce, and everything for service.

06Unit economics — FOB to shelf

Read this before using any number below

All FOB USD figures are indicative, taken from public Made-in-China and Alibaba listings. They are placeholders for Mario to quote against — not a basis for committing capital. Everything else (freight, duty, FX, CBM, fee structure) is built on verified ProLogistics actuals from the Prebur O1/O2 containers.

Cost basis

InputValueConfidenceSource
Duty — HS 8421.21 (water filtering machinery)0% VerifiedSARS Schedule 1 / JLog. Free on general, SADC, EU, EFTA, UK
Duty — HS 8421.99.90 (cartridges = parts)0% VerifiedConfirmed against SARS Sched 1 during Prebur, Apr 2026
ProLogistics fixed transport, 40HQR106,800 ActualPrebur O1/O2 invoice reconciliation
ProLogistics fixed transport, 20ftR80,000 EstimatedScaled from 40HQ — get Dheo to quote
LC / confirmation fee2.00% of goods ActualProLogistics cost structure
Marine insurance0.275% of goods ActualProLogistics cost structure
Foreign bank chargesR1,700 × 2 legs ActualE2W 30% deposit / 70% balance terms
FX planning basisR16.50 / USD In usePrebur basis; spot slightly below = cushion
40HQ practical load65 CBM ActualPrebur O2 loaded 60.5 CBM / 571 cartons

SKU-level margin (Order 1, 20ft basis)

Landed includes FOB, freight allocation by CBM, LC, insurance and bank charges. RRP is set by deliberately undercutting the local market anchor, not by applying a fixed multiple — the margin is what falls out of that.

SKUOrder
qty
FOB $LandedOur RRP
incl VAT
Market
anchor
TradeGM
retail
GM
trade
Consumables — the annuity
RO membrane 75GPD6004.50R78R449R650R28180%72%
10" CTO carbon block1,5001.10R22R139R185R8782%75%
10" PP sediment cartridge2,0000.40R10R89R120R5687%82%
T33 post-carbon polisher1,0001.00R20R135R180R8583%77%
10" GAC / UDF cartridge1,0000.95R19R129R175R8183%76%
20" Jumbo PP (whole-house)4002.20R48R195R260R12272%61%
Under-sink RO — the volume driver
5-stage RO 75GPD + tank10042.00R837R2,799R3,995R1,75266%52%
6-stage RO + remineralisation6058.00R1,120R3,999R6,395R2,50468%55%
Tankless RO 400GPD2595.00R1,719R5,499R8,595R3,44364%50%
Tankless RO 800GPD8125.00R2,238R6,999R11,290R4,38263%49%
Point-of-entry & borehole — Duncan's installed work
Whole-house 2-stage Big Blue8028.00R563R1,899R2,760R1,18966%53%
Whole-house 3-stage + bracket4042.00R837R2,799R4,200R1,75266%52%
Tank/borehole UV 12GPM + pre2585.00R1,589R3,899R5,500R2,44153%35%
Softener 1054 + Runxin valve3210.00R4,057R9,499R14,442R5,94751%32%
Auto-backwash multimedia 10543175.00R3,441R8,499R12,500R5,32153%35%
Commercial — contract channel
Scale-inhibitor cartridge head6034.00R613R1,499R2,400R93953%35%
Commercial RO 400GPD8265.00R4,780R9,999R14,000R6,26045%24%
Retail / impulse — ecommerce basket
Shower filter4003.80R72R279R420R17570%59%
Countertop gravity filter6018.00R368R1,199R1,800R75165%51%
Faucet-mount filter2004.50R87R299R450R18767%54%
AWG — demo units only
AWG 30L/day domestic (demo)1720.00R13,049R24,999R15,65240%17%
AWG 20L/day compact (demo)1560.00R10,092R18,999R11,89539%15%

Trade price = RRP ex-VAT less 28%, for plumbers and resellers. Market anchors from Puritech, BWT/Ecosoft, Little Luxury and PriceCheck listings, July 2026. The semi-commercial 1600GPD RO has been removed from Order 1 — at the indicative FOB it prices above Puritech's R10,350 and is not competitive. Re-quote it before reconsidering.

MOQ reality

Cartridges

MOQ 50–100 pieces per type. Trivially met. FOB $0.36–$1.19. This is the easiest, highest-margin part of the order.

RO systems

MOQ 2–100 units depending on supplier. Most sit at 10–100. Our Order 1 quantities (10–100) clear this comfortably.

AWG

MOQ often 1 unit, but some factories quote 1 × 40GP container minimum. Confirm before assuming we can buy two demo units.

MOQ ranges from Made-in-China.com and Alibaba supplier listings, July 2026. Mario to confirm against actual E2W factory terms.

07Container plan — 20ft, agreed

Decision taken

Order 1 ships in a 20ft container. The mix below loads 31.2 CBM against a 33 CBM practical capacity (94% full) at R676,991 landed — comfortably inside the R500–750k envelope.

Why not the 40HQ: at this budget the natural volume is ~31 CBM against 65 CBM of capacity. Shipping it half-empty means paying the full R106,800 fixed cost across half the volume — effective freight jumps from R1,712/CBM to R3,425/CBM, doubling the freight burden on every unit. Water filtration is bulky relative to value; genuinely filling a 40HQ needs roughly R1.3m of stock. That is the Order 2 decision, once we have sell-through data.

What was cut to make it fit

The first-pass mix came to 35.5 CBM — over a 20ft. Trimming it improved the container rather than weakening it, because the cuts fell on the weakest lines:

Net effect: capital down R95k, blended margin up from 64.7% to 66.1%, and return on capital up from 183% to 195%.

ScenarioCBMFillFreight/CBMFOB goodsLanded capitalGP (60:40)Return on capital
A — 20ft, Order 1 mix
agreed
31.294%R2,565$35,175 R676,991R1,318,172195%
B — 40HQ, same mix
rejected — under-filled
31.248%R3,425$35,175 R703,791R1,291,372183%
C — 40HQ, mix ×2
the Order 2 question
62.496%R1,712$70,350 R1,297,383R2,692,943208%

Scenario C has better freight economics and a higher return, but it doubles capital at risk on a product range where we have zero sell-through data. Scenario A buys a full range test across all three channels for R677k. Once we know which SKUs actually move, Order 2 goes 40HQ and captures the R1,712/CBM freight rate on proven winners only.

Headroom: at R677k against a R750k ceiling there is roughly R73k of slack and 1.8 CBM of space. Hold it. It absorbs the FOB variance when Mario's real quotes land, and it is cheaper to add units to an existing order than to discover mid-negotiation that the budget is already committed.

Where the capital sits vs where the revenue comes from

CategoryCapital% capitalRevenue @RRP% revenueGMCBM
ConsumablesR157,92623%R867,73939%82%7.9
Under-sink ROR211,84831%R620,26728%66%9.8
Point-of-entryR140,73421%R361,17316%61%7.5
Retail / impulseR68,33910%R211,6009%68%3.5
CommercialR75,00411%R147,7677%49%1.9
AWGR23,1413%R38,2592%40%0.6
TotalR676,991100%R2,246,805100%69.9%31.2
The line that matters

Consumables absorb 23% of capital and return 39% of revenue at 82% margin — while AWG absorbs 3% of capital to return 2% at 40%. Every rand moved from AWG into cartridges improves the container. That is exactly what the trim did.

Sensitivities

If duty is not actually 0%

0% (expected)R676,991
5%R706,011+4.3%
10%R735,030+8.6%
15%R764,049+12.9%

Prebur lesson: a supplier mis-declared steel frames and we carried 10% duty until confirmed. Get Dheo to confirm the tariff line in writing before the deposit goes out.

If the rand moves

R15.50/$R641,016−5.3%
R16.50/$ (basis)R676,991
R17.50/$R712,967+5.3%
R18.50/$R748,942+10.6%

At 66.1% blended GM the business absorbs a R18.50 rand without breaking — and even then lands just inside the R750k ceiling. FX is a risk to capital required, not to viability.

If the 20ft freight quote comes back higher than assumed

R80,000 is scaled from the verified 40HQ figure, not quoted. This is the weakest input in the model, so it is worth seeing how much it actually matters:

20ft freightLanded capitalBlended GPGMReturn on capital
R65,000R661,992R1,333,17166.8%201%
R80,000 (assumed)R676,991R1,318,17266.1%195%
R90,000R686,992R1,308,17165.6%190%
R100,000R696,992R1,298,17165.1%186%

Even at R100,000 — a 25% overshoot on the estimate — landed capital stays under R700k and margin holds above 65%. Worth confirming with Dheo, but it does not threaten the plan.

08Commercial & restaurant opportunity

Set expectations correctly

"restaurant water filter" gets 10 searches a month nationally. "commercial water filter" gets 30. This channel cannot be acquired through search or ecommerce. It is entirely a field-sales motion — which is precisely why it suits Duncan and precisely why it is defensible once won.

Why commercial buyers actually buy

Not for health. For equipment protection and product consistency. That reframes the entire pitch from "clean water" to "your R80,000 espresso machine dies in 18 months instead of 8 years".

SegmentPainSolutionTicketRecurring
Coffee shops / roasteries Limescale kills boilers, group heads and heating elements; hardness ruins extraction. SCA specifies 50–70 ppm Scale-inhibitor head + carbon; softener where hardness is high R1,500–4,000 Cartridge every 3–6 months
Restaurants Ice machine scaling and failure; dishwasher spotting; carafe water taste Ice machine filtration + under-counter RO for table water R4,000–10,000 2–4 cartridge changes/yr
Guesthouses / B&Bs Guest complaints on taste and smell; geyser scale; supply interruptions Point-of-entry + tank treatment + UV R6,000–15,000 Annual service
Gyms / offices Bottled water cost and logistics Plumbed-in dispensers with RO R5,000–12,000 Service contract
Dental / medical / labs Autoclave and instrument requirements demand low-TDS feed Dedicated RO with monitoring R8,000–20,000 Compliance-driven, very sticky
The commercial model to run

Sell the install at modest margin (45–55%), then put the customer on a scheduled service contract. A coffee shop on quarterly cartridge changes at R1,499 a head is ~R6,000/year of 53%-margin recurring revenue from a single site visit. Fifty sites is R300k/year of high-margin, near-zero-acquisition-cost revenue — and it is exactly the round Duncan is already driving.

Residential, for contrast

Higher margin per unit, far higher acquisition cost, much weaker retention. Residential is where the ecommerce brand and search demand live; commercial is where the durable cash flow lives. Run both — but do not expect them to behave the same way, and do not let ecommerce metrics govern the commercial pipeline.

09Atmospheric Water Generation — the verdict

Recommendation

Do not build a business line on AWG in Gauteng. Carry one or two demo units for showroom presence, PR and high-net-worth curiosity sales. Budget it as marketing spend that happens to have residual value, not as inventory.

Why — three independent reasons

1. The Highveld is too dry

Centurion averages 55% RH, but falls to 44% in August — and that monthly average masks the diurnal swing. Winter daytime humidity routinely sits in the 20–30s.

Most AWG units carry a cut-off at 30–35% RH. Output roughly halves between 65% and 35% RH. We would be selling a machine that underperforms worst exactly when Gauteng water supply is most disrupted — the dry winter.

2. The running cost is indefensible

AWG consumes roughly 0.35–0.45 kWh per litre (efficient units ~0.2; many are 0.5–1.0).

At South African electricity prices that is on the order of R1 per litre in energy alone, before capital recovery. Municipal water is a few cents a litre. Filtered tap water via RO costs a fraction of a cent. AWG only makes economic sense against bottled water — a narrow, and shrinking, comparison.

3. The margin is our worst

40% GM retail, 17% trade — against 82% on cartridges and 66% on under-sink RO.

It also consumes disproportionate CBM (0.25–0.35 per unit), carries warranty and service risk on a refrigeration circuit, and has no consumable annuity worth having. Every metric we care about ranks it last.

On the overlanding / 4x4 question specifically

You asked whether small serviceable AWG units exist for the overlanding community. They do — but the answer is still no, and the reason is worth knowing.

The units exist. 10–20 L/day portable and 12V AWG units are made in China (HurRain NanoTech A10, Guangdong Hongshu tabletop 12L, others) at roughly $550–$1,200 FOB, MOQ often 1 unit. Watergen's Mobile Box and ON Board are the established Western reference products. So supply is not the obstacle.

The obstacle is geography

Southern African overlanders drive to the Kalahari, Namibia and Botswana. Dry-season relative humidity there runs 20–40% — at or below the cut-off where AWG compressors stop producing water at all.

The product fails hardest in exactly the places its buyers take it. A R25,000 unit that produces nothing in the Central Kalahari in July generates warranty claims, refund demands and reputational damage in a small, tightly networked, forum-driven community that talks constantly. This is the fastest way to poison a new brand.

What to sell that community instead

Overlanders have a real, unmet water problem — it is just not an atmospheric one. They need to make questionable water safe: borehole water at a farm gate, river water, dubious campsite taps, water that has sat in a jerry can for two weeks.

That is a 12V mobile filtration product: 4-stage RO or 0.01µm ultrafiltration with UV, running off the vehicle's electrical system. There is already a live SA market — Pure Water 4 Life's MP-12V-4, Allmech's H2GO, Aqua Angel Pure Terrain, Little Luxury's cross-country unit, FilterShop's camping range — which is fragmented and, notably, has no brand leader. Duncan's electrical specialisation is a direct fit for 12V vehicle integration.

Sources: weather-and-climate.com (Centurion/Pretoria monthly RH); Nature Communications and PLOS Water on AWG performance vs RH; safaribookings/Kalahari climate data; Made-in-China supplier listings; SA4x4, 4x4community, Pure Water 4 Life, FilterShop.

10Risks and open questions

RiskSeverityMitigation
FOB prices are indicative, not quoted High Whole model is a placeholder until Mario quotes. Every margin figure moves with it. This is the single biggest unknown.
NRCS Letter of Authority High Any electrical component (UV lamps, pumps, AWG) may need an NRCS LOA before it can legally be imported and sold. SARS and NRCS have an MOA blocking entry without one. Check before ordering anything with a plug.
SANS 241 / performance claims Medium SANS 241 governs water quality, not devices — but if we claim compliance we must be able to prove it. Budget for independent lab testing of the lead SKUs
BWT's arrival Medium A multinational now owns the #2 brand. Expect professionalised marketing and pricing pressure. Compete on service and locality, not on spend
Duty reclassification Medium 0% is well supported but supplier mis-declaration burned us on Prebur steel. Written confirmation from Dheo before deposit
20ft freight cost unverified Low R80,000 is scaled from the 40HQ actual, not quoted. Quantified above: even a 25% overshoot keeps landed under R700k and GM above 65%. Confirm with Dheo, but it is not a threat
Cartridge fitment fragmentation Medium The annuity only works if our cartridges fit our systems and ideally competitors'. Standardise on 10"/20" industry-standard formats — do not accept proprietary housings
Installation capacity Low Duncan is one person. Model assumes full sell-through; installed lines will throttle on his available hours. Plan a second installer before Order 2
Sell-through timing Low 195% return on capital is on full sell-through, not annualised. Prebur ran 46% sell-through in ~5 months — a realistic figure here is 12–18 months to clear the container

11Next steps

  1. Brief Mario with a real RFQ. Send the SKU list with target specs and our indicative FOB assumptions. Ask for FOB, MOQ, carton dimensions and CBM per unit, lead time, and certification (CE/CB, and anything NRCS-relevant). Nothing else moves until this lands.
  2. Confirm NRCS LOA exposure. Establish which SKUs carry electrical components and whether an LOA is required. This can block a container at the port — resolve it first.
  3. Get a ProLogistics 20ft quote from Dheo — the container size is now decided, so this is a concrete ask — plus written confirmation of tariff lines 8421.21 and 8421.99.90.
  4. Duncan validates the commercial pipeline. Ten conversations with Centurion coffee shops and restaurants. Not selling — asking: what breaks, how often, who services it now, what do they pay? That either confirms or kills the contract model in two weeks at zero cost.
  5. Decide the brand position. The R2,800–R4,000 installed gap is the target. Brand, domain and identity work can run in parallel with sourcing.
  6. Re-run this model on real quotes and lock the final Order 1 mix. The model is parameterised — swapping in Mario's numbers is a five-minute job. Hold the ~R73k of budget headroom until then.
What would change the recommendation

If Mario's real FOB prices come back more than ~35% above the indicative figures used here, the mid-market position gets squeezed between Little Luxury below and BWT above, and the whole thing needs rethinking. If they come back at or below these levels, this is a straightforward, well-understood import-and-distribute business with an unusually good consumables annuity attached.