The business model is hugely profitable. The cost to buy that municipal water is exceedingly low – and once bottled, the mark-up can be about 133 times greater, a Consumer Reports analysis of company water billing and usage records found.
Having a high mark up doesn’t mean profit. That depends upon what your costs are.
For example, the direct cost to me of writing a piece for a newspaper is about one bottle of beer. That’s the specific and necessary input to get the juices flowing to write it. Or perhaps the reward for having done so. The income from having done a piece for a newspaper is, perhaps 200 times the cost of a bottle of beer. Or the type of beer I drink and the place I drink it in etc.
That’s a mark up that’s 200 times greater than that marginal cost.
It really doesn’t mean that the profit from having written a newspaper piece is £200.
But what’s good for businesses isn’t necessarily good for consumers, according to CR’s review,
Which is more idiocy of course. It is consumers who decide what is good for consumers. They buy the stuff, they think it’s worth it, adds to their utility, it’s good for them.