How Gen Z Can Make Money Through Milk ATMs and Cooking Oil ATMs in Kenya

The rise of ATMs for essential commodities like milk and cooking oil has opened up exciting business avenues for Kenya’s Gen Z entrepreneurs. These innovative machines offer convenience to consumers while providing a lucrative opportunity for young business minds.

As the entrepreneurial spirit continues to flourish among Gen Z in Kenya, one promising avenue for business is investing in Milk ATMs and Cooking Oil ATMs. These innovative vending machines have transformed the traditional retail model by offering customers a more convenient and cost-effective way to purchase fresh milk and cooking oil. For young entrepreneurs looking to capitalize on this trend, here’s a comprehensive guide on how to start and what costs to expect.

The recent nationwide protest against the #RejectFinanceBill, which ultimately led to its abolition, highlights the power of Gen Z in shaping Kenya’s political and economic landscape. This event demonstrates the potential of young entrepreneurs to drive change and influence policy decisions.

The Business Opportunity

Milk ATMs and Cooking Oil ATMs are increasingly popular in Kenya, driven by the demand for fresh, affordable products and the convenience these machines offer. These machines allow consumers to purchase precise quantities of milk or cooking oil, reducing waste and catering to their budget. For Gen Z, this business model is appealing because it aligns with modern consumer behavior and offers a relatively low barrier to entry.

Initial Costs and Considerations

The startup costs for a Milk ATM or Cooking Oil ATM business can vary depending on the location, the machine’s capacity, and the quality of the products being sold. Here’s a breakdown of typical costs:

• Machine Costs: A Milk ATM typically costs between Ksh 80,000 and Ksh 150,000, while Cooking Oil ATMs at Ksh 35,000 – Ksh 45,000 price range. Tassmatt Limited, a leading supplier, offers competitive pricing and provides budget planning and technical support, ensuring that young entrepreneurs can start their businesses with confidence.
• Licenses and Permits: To operate a milk or cooking oil ATM, you’ll need to secure the necessary permits. Licensing costs in Kenya are approximately Ksh 10,000, depending on the county regulations.
• Location: Securing a strategic location is crucial. Rent for a small retail space can range from Ksh 5,000 to Ksh 30,000 per month, depending on the area.
• Inventory Costs: Initial stock for milk or cooking oil will vary. For milk, a 50-liter initial stock might cost around Ksh 5,000, while for cooking oil, a similar quantity could be around Ksh 10,000.
• Marketing and Branding: To attract customers, investing in branding and marketing is essential. A basic marketing campaign using social media platforms could cost around Ksh 2,000 to Ksh 10,000.

Revenue Potential

The profit margins in this business are attractive. For milk, the retail price per liter is generally between Ksh 50 and Ksh 60, while the wholesale purchase price is around Ksh 40. This margin allows for significant profits, especially when sales volumes are high. Similarly, cooking oil can have a markup of about 20-30%, depending on the supplier and market demand.

Why Tassmatt Limited?

Tassmatt Limited not only offers competitive prices on Milk and Cooking Oil ATMs but also provides critical support to young entrepreneurs.

Tassmatt Limited plays a crucial role in supporting Gen Z entrepreneurs who are venturing into the Milk ATM and Cooking Oil ATM business. As a trusted supplier of these vending machines in Kenya, Tassmatt offers a comprehensive suite of services that are particularly beneficial for young business owners:

1. Competitive Pricing: Tassmatt Limited provides Milk and Cooking Oil ATMs at competitive prices, making it more affordable for Gen Z entrepreneurs to start their businesses. This is particularly important for young individuals who may have limited capital but are eager to enter the market.
2. Technical Support: One of the challenges in operating vending machines is ensuring they function reliably. Tassmatt offers ongoing technical support, helping to minimize downtime and ensuring that the machines operate efficiently. This support is vital for maintaining customer satisfaction and maximizing profitability.
3. Budget Planning: Starting a business can be daunting, especially when it comes to managing finances. Tassmatt provides budget planning assistance, helping young entrepreneurs understand the financial aspects of their business, from initial setup costs to managing cash flow. This guidance is invaluable for those new to business, allowing them to make informed decisions and avoid common financial pitfalls.
4. Business Expansion Advice: As Gen Z entrepreneurs grow their businesses, Tassmatt offers advice on scaling operations, such as expanding to new locations or adding more machines. This mentorship helps young business owners navigate the complexities of business growth and ensures they have a solid foundation for long-term success.

By partnering with Tassmatt Limited, Gen Z entrepreneurs can access the tools, support, and expertise they need to succeed in the Milk ATM and Cooking Oil ATM business. This partnership not only helps them overcome initial challenges but also positions them for sustainable growth in a competitive market.