Search for:
Jan 30 2023
How i make Kshs 200,000 from milk atm business in Nairobi West

As the business of milk atm keep raising and raising, we have witnessed entrepreneurs making huge profits and maximizing existing businesses through use of milk atm machine and cooking oil atm as an addon. This has been attributed to quality standards by milk atm sellers in Kenya like Tassmatt Limited.

Victor is an entrepreneur who runs a milk ATM machine business in Nairobi. He shares a story of how he makes a monthly profit of at least Ksh200, 000.

“I am Victor and I own Milk ATM Machine in Nairobi West. I started the business in 2014, when milk was in a great demand and only supermarkets were having ATM machines.

My parents wanted me to be an accountant, but I ignored them and went my own way-that was after I graduated in 2013.

The decision to start this business was motivated by the fact that most people in Nairobi are not fond of buying packaged milk from companies like Fresha and Brookside. They believe the price of this milk is exaggerated.

I first inquired from one of the supermarkets in Nairobi how I can get a milk ATM machine. That was the time I realized even OLX (the former JIJI) has a variety of this. I went straight to OLX and searched for the machine, only to be told it was going for Ksh 200,000 at the time. The shock almost forced me to give up.

After two weeks of figuring out what to do, I decided to take a loan from Equity Bank using my title deed. Luckily, Equity offered to give me a loan of Ksh 500,000, which I used to set up my business.

In 2014, approached Kenya Dairy Board for a license .Then I went for a trading license from Nairobi County. I also took Ksh 180, 000, which I paid for my milk ATM Machine at Tassmatt Limited at their Umoja showroom.

Setting up the business cost me Ksh 350,000.

After setting up the business, the major challenge was where to source the milk. initially,I thought it was easy until I realized most people take their milk to big companies like KCC and Brookside. To convince them, I had to pay more than what these companies paid. I now source the milk from Kajiado, Limuru  and Kiambu.

How I make Ksh 200,000 per month from milk atm business.

I but a litre of milk at Ksh 80 and sell at 90,making a profit of Ksh 10 per litre.i supply the milk to 4 schools,5 hotels and  and also sell to individuals who visit my shop. In a single day, I manage to sell 800-100 liters of milk, which yield between Ksh 8,000 to Ksh10,00.

When I subtract my expenses, I remain with Ksh 6,000-Ksh7,500.

Advantage of milk atm business

One advantage of Milk ATM Machine is that once the milk arrives at my shop, the only work I do is to ensure it’s in the machine and the place is clean. I actually don’t have a lot of work to do”

Lesson I have leant on milk atm business

One lesson I have learnt is, in business you are not supposed to postpone anything; if you have an idea implement it, regardless of whether you have capital or not. If capital is the major hindrance, simply go for unsecured loan or look for money from friends and family members”.

Tassmatt 0 Comments
Jan 16 2023
The Trends On Milk ATM Business In Kenya 2023

Milk vending ATM machine, popularly known in Kenya as milk ATM, is an innovation for retailing milk, with automation design to dispense chilled, pasteurized, and ready to drink milk. Automation offers several comparative safety and business opportunities in milk retailing. Automation minimizes milk handling, which should enhance hygiene and assure quality and safety to consumers. Automated milk dispensing is a quicker and easier means to measure any volume of milk that a consumer may want.

milk atm by Tassmatt Limited being delivered in Umoja
milk atm by Tassmatt Limited being delivered in Umoja

An ATM is an automated facility that dispenses chilled, pasteurized, ready-to-drink milk that is sold unpackaged. The ATM offers several advantages. For the business, they eliminate packaging and processing which lower retail prices, and automated business transactions ease monitoring of sales turnover. Consumers expect ATM milk from Milk ATM to enhance hygiene and offer affordable milk of any desired volume, matching their variable purchasing capacities.

Recent economic surveys in Kenya show a steady growth in sales of processed milk and dairy products (KNBS, 2016). The demand is likely greater among urban consumers, given their higher incomes and changing dietary habits with trend towards more milk and meat. Coupled with this increase are innovative businesses that have emerged to deliver affordable pasteurized milk to consumers through dispensing machines, popularly known as ‘milk ATMs’ in Kenya.

Milk ATMs are now widespread in Kenya and are located in various strategic outlets: retail shops, farms, cooperatives, supermarkets and milk bars. As part of the growing Kenyan dairy industry, the ATM enterprises are expanding, even as safety of fluid milk remains a highly debated issue of public concern. Operating an ATM requires reliable power and a clean water supply to ensure milk quality is not compromised. Regulations require that the ATM is cleaned once every 24 hours to assure high quality of milk and to minimize loss from spoilage. If you are keen follower of our articles, you will notice that companies such as Tassmatt Limited supplies Milk ATM Vending Machines that have self cleaning capacity. A user does not need to clean it manually.

Though milk ATM  is an emerging innovation in milk retailing, information about the ATM as a retailing enterprise and their value offer for quality milk is scanty. On this Milk ATM Kenya Website, we normally highlight most of our findings at a consumer and business point of view. We collect information from the raw field and this helps us to improve the quality of Milk ATM Machines manufactured and supplied by tassmatt.com in Kenya, the quality of milk too.

The growing milk ATMs retail innovation offers good business opportunities and is attracting consumers
because of the competitively priced milk they offer. The exponential growth in milk retailing through ATMs is indicative of its potential to expand the country’s level of milk processing and this expansion could reduce the
challenges of the dominant raw milk market in Kenya.

Message To Potential Milk ATM Investors In Kenya

  • The milk ATM market segment has potential to be a game changer in expanding the formal milk market in Kenya.
  • While the exponential growth of the ATM milk market is concentrated in a few towns; under right conditions this can expand to other towns.
  • Affordability of ATM milk offers the potential of upgrading the formal milk market share, especially if quality concerns are addressed. The raw milk market is the biggest competitor for ATM milk.
  • ATM milk is purchased by consumers of all income categories, but mostly by low- and middle-income earners.
  • Some consumers’ perceptions of quality and safety of ATM milk impedes growth of the segment.
  • The ATM milk market has stimulated a diverse business ecosystem with enormous business and employment opportunities, also for youth and women.

Development can further be boosted by policy and regulations and  Business development support.

==

Tassmatt 0 Comments