How To Start A Milk ATM Business In Kenya
How to start and succeed in the milk ATM business has probably been a question that has crossed your mind more than once. Techwin Limited is here to provide you with your answers. The first thing to do when thinking of venturing into a business is to conduct market research. The research should consist of the business gaps in that sector and what you will need to start it. Lucky for you, we will give you a step-by-step process to follow on the same.
Why you should start a Milk ATM business in Kenya
With the increase of High-rise residential developments in the urban centers, coupled with the abundance of quality milk production in the outskirts of these centers, the opportunities presented by the Milk ATM, are endless. Both the local farmers and entrepreneurs can greatly profit from the venture as it is not only cost-effective but also bears considerably less risk to consumers when compared to roadside milk vendors. Techwin remains to be a trusted and reliable expert in the supply, installation, and maintenance of dairy and milk processing equipment within the sector.
How to start and succeed in the milk ATM business.
Step One: Determine a suitable location.
Identify a business premise preferably with high human traffic that can yield large volume of sales per day.
- Consider collaboration, and partnership with the nearest local supermarket or mini-market and negotiate a revenue-sharing agreement. They can give you space, while you provide the machine and milk to dispense.
- Identify a local shopping center, rent a shop and equip it with the Milk ATM. Find a dairy farmer to supply the milk on a regular schedule and make sales.
Step Two: Choose a good-quality ATM machine.
Investing in a Milk ATM from a reliable company will determine the heights of success your business will attain. Depending on the human traffic and demand for the milk, a machine with enough capacity to sustain your customers’ demand is essential. Currently, Techwin stocks imported Milk ATMS suitable for the sustenance of this business venture. The ATMs can be paired with either galvanized stainless steel or aluminum milk cans which are available from the company.
Advantages of Techwin Milk ATMs :
- They have an inbuilt cooler that regulates the temperature of the milk.
- Easy to use.
- Noiseless, therefore offering a good working environment.
- Made from industry-standard food-grade materials that will preserve the integrity of the fresh milk.
- Spare parts are readily available locally from Techwin.
- Power-efficient (Single phase).
- Low operational costs, and easy to maintain.
- Techwin-supplied ATMs come with a 12-month warranty.
- Available in various sizes
- Can be customized to fit preferred and personalized branding.
Step Three: Locate dairy farmers or milk suppliers.
Form partnerships with dairy farmers or reliable and trustworthy suppliers to get an affordable and consistent supply of milk. Ensure that you have done a cost comparison of the commodity from local farmers and vendors to ensure that you get the best quality and quantity in the market.
Step Four: Get authorization and license from local authorities.
As is the norm with any business, you will need certification, authorization, and licenses from local authorities. Ensure that you visit the county, or area government offices to obtain authentic information and authorization required before opening your doors to the public.
The estimated cost of acquiring the Milk ATM :
- Buying Milk ATM (100 Litres) – (Ksh152,000)
- Transport – Ksh1,000 (estimate)
- Relevant Licenses – Ksh20,000 (estimate)
Estimated Profit Potential :
Once established, the business can realize proceeds from the sale of approximately 200 liters of milk a day. However, this is dependent on the location, commodity demand, and human traffic witnessed in the vicinity of the ATM. Owing to the fact that the quality of milk in the ATMs is similar to packaged milk but 30% cheaper than the retail branded milk; a clean, reputable, and reliable station with good customer service can record exponential growth and proceeds from its sale.
Chances of the profit potential increase if you partner with an established supermarket, or mini-market on a good revenue-sharing agreement. That way you can sell more than 1,000 liters of milk per day.
Not only does Techwin guarantee industry-approved food-grade milk ATMs and milk cans, but we will also offer affordable installation and maintenance support in the course of the machine’s lifetime.
NOTE: It is possible to dispense more than 100 liters of milk per day as long as the location, quality, and customer service are right.
For inquiries and orders call Techwin Limited through 0743793878