329: Rich Razgaitis: Transforming The Way The World Drinks Water

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How do you shift consumer preference through a compelling value proposition?

Rich Razgaitis

Rich Razgaitis is the CEO and founder of FloWater. With 20 years of experience in leadership and tech, Rich is passionate about transforming the way the world drinks water.

Based in Denver, FloWater’s mission is to put an end to single-use plastic water bottles. Their product keeps 2.38 plastic water bottles from reaching our landfills and oceans every second. (To date, they’ve already saved 130 million!)

Since its launch, FloWater has achieved tremendous revenue growth year after year. Currently, it’s expanding its reach to major markets across the country.

What We Discuss With Rich Razgaitis In This Episode

Why bottled water is the new cigarette
Driving consumer behavior and buying trend
Why many people don’t use tap water anymore
Other health benefits of using FloWater
Where to focus in terms of value proposition and raising capital
What brings Rich the greatest joy in what he does

Episode Transcript Highlights

Bottled Water is the New Cigarette

Cigarette Facts:

Back in the 50s and 60, tobacco used to be advertised as healthy. But due to factors like public awareness and health outcomes, its usage significantly reduced. Amidst the sea of cash that these big tobacco companies are making, the tobacco industry is still being vilified.
Interestingly, a pack of cigarettes contains 6,000 known chemicals.
Smoking has a residual effect. For instance, one stick won’t hurt you, but smoking thousands of it will have harmful effects.

Bottled Water Facts:

Today, we’re seeing a megatrend away from plastics because of its destructive effects.
The U.S. discards 50 billion single-use plastic water bottles each year, of which 38 billion of those roughly end up in oceans, lakes, rivers, and landfills.
In certain parts of the Pacific Ocean, micro particulates from plastics have outnumbered plankton by 6:1.
There are 10,000 known chemicals used in producing water bottles. And some of these plastics and petroleum products contain very harmful endocrine-disrupting chemicals.

Why Consumers Don’t Drink Tap Water Anymore

Between 65% and 84% of Americans don’t like or trust tap water. Unfortunately, you can’t convince someone to buy a product they don’t trust. Therefore, the key is to transform tap water.

Aside from chlorine and fluoride, glyphosate is another harmful chemical compound found in tap water. Think Roundup. In other words, when glyphosate gets into our water systems, we’re literally drinking weed killer in small doses.

Similar to cigarettes, drinking tap water has its residual effects as well.

Shifting Consumer Preference Back to Tap Water

Through a highly sophisticated and very robust purification process, FloWater device treats water at the source. You can even hook it up directly to a pond. And what you get is pristine, healthy water.

As a result, there’s a shift in consumer preference to tap water. Here are some other benefits of using FloWater’s filtration system:

50% reduction in soda and coffee consumption
80% reduction in single-use plastic waste
Two- to five-fold increase in daily hydration
It’s fast! What normally takes 30-40 seconds to fill a bottle from a fountain, could now be filled in just less than 10 seconds.

How to Create a Compelling Value Proposition and Fund Your Initiative

In order to avoid making any trade-off, be able to come up with a product that has a super compelling value proposition.

Evaluate if you really need to raise capital. It’s easy to think you need more money than you do. Conversely, it’s also easy to under-anticipate the amount of expenses you need.

If you decide to raise capital, consider getting a lead angel investor – whether friends or family – to sponsor for the round. The key is to have a great financial picture.

Episode Resources

Connect With Rich Razgaitis and FloWater

Website: www.drinkflowater.com
Linkedin: www.linkedin.com/in/richrazgaitis
Instagram: www.instagram.com/richrazgaitis

Listen on Apple Podcasts, Spotify, Pandora or Stitcher.

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How do you shift consumer preference through a compelling value proposition?