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Mar 19 2023
Milk ATM Business Plan For A New Investor

To conduct a cost analysis on a milk ATM business in Kenya, we need to consider the various expenses involved in starting and running the business. Here are the key costs to consider:

  1. Milk ATM machine: The cost of a milk vending machine can range from Ksh. 100,000 to Ksh. 300,000 depending on the size, capacity, and features. A basic model that can hold up to 200 liters of milk can cost around Ksh. 150,000.
  2. Location: You will need to rent or lease a space to install the milk ATM machine. The cost of rent or lease will depend on the location and size of the space. In some cases, you may be able to negotiate a revenue-sharing agreement with the landlord.
  3. Licensing and permits: To operate a milk ATM business in Kenya, you will need to obtain a business permit from the county government and a food hygiene certificate from the Ministry of Health. The cost of obtaining these licenses and permits can vary, but it typically ranges from Ksh. 10,000 to Ksh. 20,000.
  4. Milk supply: The cost of milk will depend on the volume and quality of milk you require. The price of milk can vary depending on the season, but it typically ranges from Ksh. 35 to Ksh. 50 per liter.
  5. Utilities: You will need to pay for electricity and water to operate the milk ATM machine. The cost of utilities will depend on the consumption and tariff rates in your area.
  6. Maintenance and repairs: You will need to maintain and repair the milk ATM machine regularly to ensure that it is functioning properly. The cost of maintenance and repairs will depend on the frequency and severity of issues.
  7. Marketing and advertising: You will need to promote your milk ATM business to attract customers. The cost of marketing and advertising can vary depending on the channels and strategies used.

Based on these costs, we can estimate the total startup cost and monthly expenses for a milk ATM business in Kenya as follows:

Startup costs:

  • Milk ATM machine: Ksh. 150,000
  • Licensing and permits: Ksh. 20,000
  • Rent: Ksh. 15,000
  • Initial milk supply: Ksh. 50,000
  • Marketing and advertising: Ksh. 10,000
  • Total startup cost: Ksh. 245,000

Monthly expenses:

  • Milk supply: Ksh. 150,000
  • Utilities: Ksh. 5,000
  • Maintenance and repairs: Ksh. 5,000
  • Rent: Ksh. 15,000
  • Marketing and advertising: Ksh. 5,000
  • Total monthly expenses: Ksh. 180,000

Assuming an average selling price of Ksh. 50 per liter and a daily sales volume of 200 liters, the monthly revenue for the milk ATM business would be Ksh. 300,000. This would result in a monthly profit of Ksh. 120,000, after deducting the monthly expenses.

Note that the actual costs and revenue for a milk ATM business in Kenya may vary depending on factors such as location, competition, and market demand. It is important to conduct a thorough market analysis and cost analysis before starting a milk ATM business.

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Mar 19 2023
Milk ATM Business In Kenya, feedback from happy customer in Nairobi

Its Saturday afternoon when the team from Tassmatt Limited delivered and installed the brand new 200L milk atm to a customer in Nairobi Kawangware, the happy customer had previous day made an order online at www.tassmatt.com and was followed by a phonecal from Tassmatt representative.

According to wikipedia, the 2009 Kenya Population and Housing Census, Kawangware’s population was 133,286 people at this time. It is estimated that 65% of the population are children and youths. Most inhabitants live on less than $2 (although they earn in shillings) a day and unemployment is high; many are self-employed traders. There is a diversity of ethnic backgrounds. Kawangware slum has more posho mills than bars, making it an ‘ugali nation’ for its over 130,000 mouths whose palates, unlike those of other Nairobians, have no time for supermarket unga, the grade-one sifted maize meal favoured by middle-class stomachs.

This according to Mr Wanjau, the investor of the new milk atm is an ideal area for milk business, the high population with low income would get affordable safe milk from as low as 10Kshs.

Mr Wanjau has setup the milk business as an add-on to his local shop that he sells common day to day household commodities.

“I am very delighted and happy, i normally don’t do online shopping by today i got a sure bet, the machine is here, its working well, the support and advice from Tassmatt team is on another level, i would recommend anyone who wants to invest on a milk atm to consult Tassmatt, they are the wizzards, am looking foward to install two other machine before August” Said Mr Wanjau

About Milk ATM Business in Kenya

The milk ATM business in Kenya has gained popularity in recent years, especially in urban areas where there is a high demand for fresh and affordable milk. Milk ATMs are essentially vending machines that dispense milk from a refrigerated storage unit. Customers can use their mobile phones to pay for the milk, which is dispensed into their own containers.

To start a milk ATM business in Kenya, you will need to follow these steps:

  1. Conduct market research: Before starting any business, it is important to understand the market demand, competition, and pricing. Research the local market to determine the demand for fresh milk, the competition, and the pricing of other milk products.
  2. Identify a suitable location: Look for a location that is easily accessible and visible to potential customers. The location should be close to residential areas and have access to a reliable source of electricity and water.
  3. Obtain the necessary licenses and permits: To operate a milk ATM business in Kenya, you will need to obtain the necessary licenses and permits from the relevant government authorities. This includes a business permit from the county government and a food hygiene certificate from the Ministry of Health.
  4. Purchase and install the milk ATM machine: Purchase a high-quality milk vending machine that is designed to dispense fresh milk. Install the machine in a visible and secure location, and ensure that it is regularly maintained and cleaned.
  5. Source high-quality milk: Work with local dairy farmers or milk processors to ensure a steady supply of high-quality milk. Ensure that the milk is fresh and safe for consumption, and that it is stored at the correct temperature.
  6. Market your business: Use social media, local newspapers, and flyers to promote your milk ATM business. Offer discounts and promotions to attract new customers, and provide excellent customer service to retain existing customers.

Overall, the milk ATM business in Kenya can be a profitable and rewarding venture, provided that you conduct thorough research, obtain the necessary licenses and permits, and provide high-quality and affordable milk to your customers

 

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