How to Make Good Money With a Milk ATM Business
Are you an entrepreneur or thinking of starting a business? Or probably you already have an existing business and want to expand your income. Either way you have seen an opportunity in selling milk and want to venture into it. We are here to give you some tips on how to make good money with a milk ATM business.
Step one: identify the opportunity
The first step before you start any business is identifying the opportunity. You need to make sure that there is market for the milk or any other product for that matter. Do not just jump into the business for the sake of it. Establish if there is demand and sufficient clients for the milk.
One problem we have seen with Kenyans is venturing into an overcrowded market and people end up driving each other out of business. Therefore research if there are other milk ATMs operating in the same location you want to install yours. However it could be that there are others but they are not able to meet the demands of the market and by venturing you are guaranteed of clients.
On the other hand it could be that your are more strategically located or you own an established business with loyal clients that would shift to buying from you. This way you are the one who eats into the client share of other businesses. Whatever the case just make sure that you are guaranteed of clients before venturing into the business.
Step two: establish a milk source
The next step after identifying there’s market for your milk is establishing where you will be getting the milk from. There are suppliers of milk from different parts of the country you can approach to be supplying you with the milk. For example there are dairy farmers cooperatives who correct milk from their farmers and sell on their behalf. Just make sure that they are not far from where you are located or that they have means of supplying. We as phyne tech has a list of milk suppliers you can choose from. Namely: Kinangop dairy, Murang’a dairy, Gatundu Dairy , Mt Kenya Dairy and Meru Dairy
Do not go for those that require you to go pick milk for yourself because it’s not cost effective. There are suppliers who supply in Nairobi from different parts of Kiambu county for example. These suppliers have their own vehicles and since they have many clients, it’s economical for them to transport the milk to venders.
There are also some milk companies that also sell unpacked milk in jerrycans that you can approach. They do this because they don’t have a big market share for their branded milk. Therefore so as to expand their sales channels and be able to sell all the milk they have, they usually sell to milk ATM vendors. Your job is to identify a reliable supplier so that you are able to serve your clients always.
Important to note: Kenya Dairy Board requires milk ATM vendors to sell only pasteurized milk. Make sure the milk supplier sells you pasteurized milk.
Tip: time one of the suppliers who supply to supermarkets or other milk ATM vendors during their trips to see if they can supply you too. This way they just drop at your place when doing their rounds.
Step three: get the necessary licences
The third step after you have identified a market and established your reliable source of supply is getting the necessary licences. Here you will need:
- A licence from the Kenya Dairy board
- Single business permit if you don’t have an established business
- Food handling certificate- this saves you from harassment by the county council officers AKA kanju.
Last time we checked the above are the 3 requirements unless things have changed. However we advise you to inquire what is needed so that you can be well set. Better safe than sorry. The fines can be punitive for lack of adherence.
Step four: modify your business premises
The fourth step involves getting your business premises ready. Ensure that your premises is modified well to suit installation of the milk ATM at a strategic location. It should be possible for clients to come in and hand over their bottles and see the display unit that shows you have pressed the right figure.
No matter how honest you are clients will not trust that you have dispensed the right amount of milk commensurate with the amount of money they paid if the unit is not visible to them. Therefore make sure that the milk ATM display unit is well visible to the clients.
Also you need to make sure that the milk storage tank compartment is easily accessible. The doors need to open in a free space. This will help you receive and pour milk in the ATM without challenges.
Step five: buy a high quality Kenya Dairy Board approved milk ATM
After you have done the above four steps, it’s time you bought the milk ATM. Now here you need to be careful and buy a milk ATM that is Kenya Dairy Board approved. There are specific things that KDB look for and if found not having an approved ATM you can get into trouble.
The good thing is you don’t have to worry about this if you buy from Saset. We make high quality KDB approved milk ATMs. Therefore when you buy from us you can have peace of mind it meets the highest standards and will not get you into trouble.
Step six: establish a loyal client base
The final step in now earning loyal customers. Establishing loyalty comes by offering high quality milk and always having enough stock. This way, your clients always know they can come to your shop and find milk.
Also ensure that you maintain high standards of hygiene. A milk ATM business must always be clean and the people handling it must also always be clean.
How to make good money with a milk ATM business
The following are figures that show you how to make good money with a milk ATM business.
Milk cost per liter(pasteurized)- Ksh 50 (this figure can go down to 45 in rainy seasons or when there’s plenty of milk in the market).
How much you sell per liter- Ksh 60 (some locations its sold @65 Ksh)
Profit per liter- Ksh 10
Sales per day 200 liters X Ksh 10 = Ksh 2000 per month that comes to Ksh 60,000 (remember you can sell more at a high traffic location with no competition.
For example if you sell 500 liters per day that amounts to 500×1- 5000 Ksh per day resulting to Ksh 150,000 per month.
Please note the above figures are relative. Milk prices go up or down depending with the supply. At times milk is supplied at ksh 55 per liter.
Buy a milk a high quality milk ATM from us
Are you in the market for a milk ATM? Phyne Tech is your best source of high quality milk ATMs that are approved by Kenya Dairy Board. Get in touch with us today if you need one.