Guidelines for Investing in Dairy Milk Dispenser Business in Kenya
Are you looking for a profitable and sustainable business opportunity in Kenya? If so, you might want to consider investing in a dairy milk dispenser business. In this post, we will share with you elaborate guidelines for investing in dairy milk dispenser business in Kenya. We will also share the steps to take when starting a milk ATM business in Kenya and why Saset milk ATM are the best in the market. In this post you will also learn why we believe investing in a milk vending machine business is a good idea. Let us delve in right away.
What is a dairy milk dispenser
A dairy milk dispenser, also known as a milk ATM, is a machine that sells fresh, pasteurized milk to customers who bring their own containers. It is a convenient and affordable way to provide quality milk to urban consumers, while also supporting local dairy farmers. The guidelines for investing in dairy milk dispenser business in Kenya in this post are meant to help you get the most return on investment in your venture.
Section I: Guidelines for Investing in Dairy Milk Dispenser Business in Kenya
Why we believe investing in a milk ATM business is a good idea
At Saset, we are proud to be one of the leading manufacturers and suppliers of dairy milk dispensers in Kenya. We have been in this industry for over eight years, and we have seen the growth and potential of this business. We have a loyal customer base, as well as many new clients who are interested in our products and services. That is why we want to share with you some of the best practices and tips for starting and running a successful dairy milk dispenser business in Kenya.
Why invest in a dairy milk dispenser business in Kenya
A milk ATM business is a great way to earn a steady income, as milk is a staple product that is in high demand in most households. With a milk ATM, you can sell milk in flexible amounts to customers who bring their own containers, which allows you to sell more milk than those who sell pre-packaged milk. It is also more appealing to customers who do not have refrigerators at home and who want to buy only the amount of milk they need, without wasting any.
Section II: Guidelines for investing in dairy milk dispenser business in Kenya- steps to take
Step 1: Research the Requirements and Regulations of operating a Milk ATM Business in Kenya
This involves knowing which licenses are required and the regulations for setting up a milk ATM business in Kenya. It must be set up in a hygienic environment where there is access to clean drinking water. Kenya Dairy Board also requires that milk sold via milk dispensers must be pasteurized.
The three main licenses to obtain here are;
- A dairy license from the KDB, allowing the operation of a milk vending machine and the sale of pasteurized milk. The annual license fee is Ksh. 5,000, requiring renewal on a yearly basis.
- A trading license from the county government, granting permission to conduct business at your chosen location. The annual license fee varies by county, typically averaging around Ksh. 10,000 per year.
- A health certificate from the public health department, verifying that your milk ATM business adheres to hygiene and sanitation standards. The certificate fee is Ksh. 2,000 per year, renewed annually.
NB: You can acquire a KDB approved milk dispenser made by Saset.
Step 2: Find a Strategic Location for Your Milk ATM Business
Tips for choosing the perfect location for your dairy milk dispenser business
The success of your milk ATM business hinges on its location, influencing sales, visibility, and the size of your customer base. When scouting for a location, consider the following factors:
High Foot Traffic:
Opt for areas with significant foot traffic, such as residential zones, schools, offices, and markets. A bustling environment increases the likelihood of attracting potential customers.
Target Market Alignment:
Choose a location aligned with your target market, be it low-income or middle-income areas, in accordance with your pricing strategy. Understanding and catering to the demographics in the area can enhance your business appeal.
Seek locations with minimal or no competition from other milk ATM businesses. Offering a unique value proposition in a less saturated market can set you apart from competitors.
Optimize accessibility by locating your milk ATM business near main roads, bus stops, parking lots, or other high-traffic areas. Ensuring ease of access encourages customer convenience.
Prioritize safety by choosing a location with security measures in place, such as proximity to a police station, the presence of a security guard, or CCTV cameras. Protecting your business from theft or vandalism is essential for long-term success.
Consider the affordability of the rent, which depends on factors like size, condition, and location of the premises. Monthly rent typically ranges between Ksh. 10,000 and Ksh. 50,000, factoring in these variables.
Selecting a strategic location that aligns with these considerations will contribute significantly to the prosperity of your milk ATM business.
Step 3: Find Reliable Suppliers for Your Milk ATM Business
Your milk ATM business depends on the quality and quantity of your milk supply, as they influence your customer satisfaction and income. You should look for trustworthy suppliers who can offer you fresh, pasteurized, and quality milk at reasonable prices.
Step 4: Acquire a High-Quality Dairy Milk Dispensing Machine
Your milk ATM business relies on the milk ATM machine, as it dispenses the milk to your customers. You should buy a high-quality milk ATM machine that complies with the standards and regulations of the KDB and guarantees smooth operations and customer satisfaction.
It should have a food grade stainless steel storage tank and food grade pipes for transferring the milk from the tank to the nozzle. It should also be refrigerated to ensure milk can stay for long without getting spoilt.
Another crucial feature is the digital control unit or PLC. This enables you to precisely set the prices, sell the correct amounts and maintain sales records for easier sales reconciliation.
Step 5: Determine a Competitive Pricing Strategy for Your Milk ATM Business
Your milk price is crucial for your profitability and customer appeal. You should have a competitive pricing strategy for your milk ATM business, which means that you set a price that pays for your costs, gives you a profit, and draws your customers to your business. Don’t set too low that you barely make profits and unable to cover costs of doing business.
Step 6: Branding and Market Your Milk ATM Business
Some people might feel this is not necessary for such a business but you shouldn’t ignore it. Some of the creative and effective ways of marketing your milk ATM business can be:
- Online advertising: You can leverage online platforms, such as WhatsApp and Facebook, to market your milk ATM business to a niche audience. For instance, posting on your WhatsApp status or group walls of people close to your business. A good example is to post in a WhatsApp group of your neighborhood if you are in one. You can make and share captivating content, such as photos, videos, testimonials, or offers, that display your milk ATM business and its advantages. You can also engage with your prospective and current customers, and respond to their questions or feedback.
- Local platforms: You can utilize local platforms, such as flyers, posters within the premises you operate in or along the route where potential customers walk by every day, or banners to advertise your milk ATM business to a specific and suitable audience. You can make and distribute appealing and informative materials, that emphasize your milk ATM business and its location, price, and quality. You can also support or join local events, such as fairs, festivals, or competitions, that can expose your milk ATM business to a large and interested crowd.
- Word-of-mouth: You can rely on word-of-mouth, which is the most effective and credible form of marketing, to spread the word about your milk ATM business. You can motivate your happy customers to recommend your milk ATM business to their friends, family, or neighbors, and offer them rewards, such as discounts, referrals, or loyalty programs, for doing so. You can also use your network, such as your suppliers, partners, or employees, to promote your milk ATM business and create positive buzz.
Step 7: Work on Maintaining High Standards of Milk Hygiene
How to Maintain Hygiene and Customer Service for Your Milk ATM Business
Your milk ATM business depends on the hygiene and customer service that you provide, as they influence your reputation and retention. You need to uphold high standards of milk hygiene and customer service, which means that you guarantee and deliver the safety and quality of the milk dispensed, and the courteous and efficient service provided.
The main hygiene and customer service practices that you need to follow for your milk ATM business are:
- Cleaning the machine and its components daily: You need to clean the milk ATM machine and its components, such as the tank, the dispenser, the nozzle, and the payment system, regularly and thoroughly on a daily basis, using approved cleaning agents and methods. This will prevent the growth of bacteria and the contamination of the milk.
- Storing and handling the milk properly: You need to store and handle the milk properly, following the best practices of cold chain management and hygiene. This means that you keep the milk at the optimal temperature of 4°C, avoid exposing it to sunlight or heat, and use clean and sealed containers and utensils.
- Training your staff: This applies mainly to a situation where you have employed people to operate your business and especially if you have several branches. You need to train your staff, if you have any, on how to operate the milk ATM machine, how to handle the milk, and how to serve the customers. You need to ensure that they follow the hygiene and customer service standards, and that they wear the appropriate attire and equipment, such as gloves, masks, and aprons.
Step 8: Offering Good Customer Service
Resolving customer complaints is very important: You need to handle customer complaints, if any, quickly and politely. You need to hear their problems, say sorry for any trouble, propose a remedy or compensation, and appreciate their feedback. You need to also benefit from their complaints and enhance your milk ATM business accordingly.
Section III: Guidelines for Investing in Dairy Milk Dispenser Business in Kenya
Factors to consider when buying a dairy milk dispenser in Kenya
A milk ATM is a self-service vending machine that dispenses raw or pasteurized milk to customers. It is a popular and profitable business in Kenya, as it provides fresh and affordable milk to the consumers, and eliminates the need for packaging and middlemen for the dairy farmers1.
Some of the factors that you should consider when purchasing a milk ATM in Kenya are:
- The capacity of the milk tank. You should choose a milk ATM that can store enough milk to meet the demand of your customers, and also keep the milk chilled to preserve its quality. The capacity of milk ATMs in Kenya ranges from 50 to 1000 litres2.
- The body size of the milk ATM. When buying a milk dispenser, it’s important to consider the size so that you don’t buy one that is unnecessarily big and not fit in your space or is bulky to transport or move around.
- The quality of the milk ATM. Does the milk ATM meet Kenya Dairy Board standards? You should look for a milk ATM that is made of food grade stainless steel. The pipes should also be food grade.
- Features of the milk ATM. The milk ATM should have a digital control panel (PLC) for ease of operation, a self-cleaning mechanism. Another feature that you can consider but not a must is if the milk ATM has base wheels to enable it to be moved around easily.
- The price of the milk ATM. You should compare the prices of different milk ATMs in Kenya, and look for the best value for your money. You should also factor in the installation, maintenance, and operation costs of the milk ATM. The price of milk ATMs in Kenya varies depending on the capacity, quality, and features of the machine, but it generally starts from Ksh 70,0005.
- The warranty the seller is giving you. This should tell you how much they believe in the quality of their product. A 1 year warranty is standard and anything below that should not be considered.
- The reputation of the seller. You should check the reputation and reviews of the manufacturer or supplier of the milk ATM23. You can ask around from people who might have done business with them or check reviews about them online. Some of the places you can check reviews include Facebook, Google, Jiji etc.
Section IV: Guidelines for Investing in Dairy Milk Dispenser Business in Kenya
Reasons to Choose Saset as Your Reliable Partner for Dairy Milk Vending ATM Machines in Kenya
If you are looking for a trusted and experienced manufacturer of milk vending ATM machines in Kenya, look no further than Saset. We have been in this business for over eight years, and we have earned a reputation for delivering high-quality, affordable, and customized products and services to our customers. Here are some of the reasons why you should choose us as your partner for your milk vending ATM business:
- High quality: We guarantee the quality of our products, as we use the best materials and technology to make them. We also ensure that our products meet the standards and regulations of the Kenya Dairy Board, the Kenya Bureau of Standards, and the Ministry of Health. Our products are durable and reliable, and we have received positive feedback from our customers regarding their performance and functionality.
- Affordability: We offer competitive and reasonable prices for our products, as we understand the financial challenges that many entrepreneurs face when starting a new business. We do not compromise on quality, but we strive to make our products accessible and affordable to our customers.
- Variety: We have a wide range of dairy milk dispensers that we produce, in different sizes, designs, and branding options. You can choose the one that suits your needs, preferences, and budget. You can also browse through our portfolio and see some of the products that we have made for our previous customers.
- After sale services: We provide after sale services to all our customers, such as installation, maintenance, repair, and training. We have a team of qualified and experienced technicians who are ready to assist you whenever you need any help with your equipment. We also offer a warranty for our products, and we are always available to answer any questions or concerns that you may have.
- Customization: We can customize our products according to your specific requirements, such as the capacity, the color, the logo, the features, and the payment system. We can also advise you on the best options for your business, based on our expertise and experience. Just let us know what you want, and we will make it happen for you.
- Countrywide delivery: We can deliver our products to any part of Kenya, thanks to our partnership with leading courier service providers who have a countrywide coverage. We can also arrange for the transportation and installation of your equipment, and ensure that it reaches you in good condition and on time.
These are some of the reasons why you should choose Saset as your reliable partner for your milk vending ATM business in Kenya. We are confident that you will be satisfied with our products and services, and that you will join our growing list of happy and loyal customers. Contact us today and let us help you start and grow your dairy milk dispenser business in Kenya.
Investing in milk business is a great move because you can be guaranteed of daily sales considering milk is a daily consumed item in many households in Kenya. We hope the above discussed guidelines for investing in dairy milk dispenser business in Kenya will help you venture into this business well informed. Make sure you apply all the steps discussed above but also do more research of your own.
Buy a KDB approved milk vending machine from Saset today
Don’t miss this opportunity to get a milk vending machine from Saset, the leading manufacturer of KDB approved dairy milk dispensers in Kenya. Our products are top-notch and we offer convenient delivery services to your location.
You can contact us today to buy a very high-quality milk ATM.
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