How Your Fortunes can Change Aided by a Milk ATM Vending Machine

The Milk ATM Vending Machine business isn’t exactly new here in Kenya, in fact several supermarkets already have these machines installed. However, according to our outlook there’s is a lot of potential in this emerging opportunity waiting to be fully leveraged, and Many SME’s have struck gold from this venture, proving naysayers wrong.

The fact that so many community estates in our urban centers and with abundance of raw milk, considering that milk is almost a basic need in every household, this worthwhile venture can be your new cash cow.

Here’s how you can get started with a milk ATM vending machine.

• Find and Ideal Location: The secret to success in this Milk Vending Machine Business lies in economies of scale. You therefore should locate your business in an area that is adequately populated. The more walk-in customers your ATM can attract, the more value to be realized.

• Procure a Good Milk ATM: Choose a machine that does not strain your budget and one that has enough capacity to sustain your customers’ demand. You can start small with a 200 liter machine and then graduate to a bigger 1000 liter machine as demand rises.

A good Milk Vending ATM Machine can be sourced locally from local manufacturers like SASET Technical Services or import directly from China. Locally manufactured machines are cheaper and easier to transport thereby saving you cash.

• Organize for constant Milk supply with local farmers: Yes your business will be located in the urban centers but in order to get quality and consistent milk supplies you will need to link up with farmers or suppliers. As part of your planning, take time to visit the surrounding rural areas and compare cost before settling on the most feasible source.

Don’t take chances. Have your suppliers sign a contract with you…that way you will be sure they’ll not sell your milk to anyone else and leave your supplies hanging.

• Obtain necessary licenses: You will need a license from the Kenya Daily Board which will cost you Ksh2,500 with a one-time application fee of Ksh600. This is of course in addition to the county single business permit which may vary from Ksh 5,000 in remote counties to as high as Ksh 20,000 in urban counties like Nairobi and Mombasa.

In Hindsight, A well-established Milk ATM Vending Machine business can sell over 200 liters of milk per day. This is because ATM milk is of the same quality as packaged milk yet 30% cheaper. So provided your shop is clean and your customer service is on point, there is no reason as to why you should not sell more than 200 liters a day.

There is even more potential if you partner with a renowned retailer e.g. a supermarket, on a revenue sharing agreement. That way you can sell more liters of milk per day.