Tips on how to Start a Cooking Oil ATM Machine Business and Make Good Returns on Investment
Despite Kenya’s status as a middle-income country, unemployment remains a significant challenge. Many Kenyans are turning to small businesses as a viable solution to this issue. At Aquatech, we are committed to providing solutions that can help reduce unemployment through easy-to-implement business ideas and affordable products. One such opportunity is starting a cooking oil ATM machine business. In this post, we will share valuable tips on how to start a cooking oil ATM machine business and make good returns on investment.
We will also discuss why invest in a cooking oil ATM machine business in Kenya? Finally, we will guide you on where to buy high-quality salad cooking oil ATMs, also known as cooking oil dispensers, in Kenya.
How to Start a Cooking Oil ATM Machine Business and Make Good Returns on Investment
Starting a cooking oil ATM machine business involves several key steps:
- Conduct thorough market research
- Find a good location for your cooking oil ATM machine business
- Invest in a reliable cooking oil atm machine
- Establish relationships with trusted suppliers
- Comply with regulatory requirements
- Market your business effectively
- Provide excellent customer service
Let us now discuss these steps 1 by 1.
Steps on how to start a cooking oil ATM machine business and make good returns on investment
Conduct Thorough Market Research
The first step in starting a cooking oil ATM machine business is to conduct thorough market research. This involves understanding the demand for cooking oil in your target area. Look into the consumption patterns, preferences, and purchasing power of potential customers. Identify your competitors and analyze their strengths and weaknesses. This research will help you determine the viability of your business idea and identify the best strategies to attract and retain customers.
Find a Good Location for Your Cooking Oil ATM Machine Business
Choosing the right location is crucial for the success of your cooking oil ATM machine business. Look for areas with high foot traffic, such as near markets, residential areas, or busy streets. A strategic location ensures that your business is easily accessible to a large number of potential customers. Additionally, consider the safety and convenience of the location for both you and your customers. A well-chosen location can significantly boost your sales and profitability.
When choosing a location for your cooking oil ATM business, you have two options. The first is to set up your own shop where you can operate the cooking oil ATM alongside other machines like milk ATMs, water purifiers, and water ATMs. This approach allows you to create a one-stop shop for various essential products, attracting a diverse customer base.
The second option is to partner with a local supermarket or store to place your cooking oil ATM in their space. While this might require some negotiation, it can be highly rewarding. Supermarkets and shops already have a steady flow of customers, providing you with a ready-made market. With a high-quality cooking oil ATM and premium salad oil, you can tap into this existing customer base and generate significant revenue.
Invest in a Reliable Cooking Oil ATM Machine
Investing in a high-quality cooking oil ATM machine is essential. Purchase your machine from a reputable supplier like Aquatech to ensure it meets all regulatory standards and is durable. A reliable machine minimizes downtime and maintenance costs, ensuring smooth operation. Look for features such as ease of use, accurate dispensing, and low maintenance requirements. A good machine will provide a better customer experience and help build your reputation.
Establish Relationships with Trusted Suppliers
To maintain a steady inventory of cooking oil, establish relationships with trusted suppliers. Reliable suppliers ensure that you always have a consistent supply of high-quality cooking oil. Negotiate favorable terms and prices to maximize your profit margins. Building strong relationships with suppliers can also provide you with better deals and priority service, which is crucial for the smooth running of your business.
Comply with Regulatory Requirements
Ensure that your business complies with all local regulations and standards. This includes obtaining the necessary licenses and permits to operate a cooking oil ATM machine business. Compliance with health and safety standards is also crucial to avoid legal issues and build customer trust. Staying informed about regulatory changes and maintaining compliance will help you avoid fines and ensure the long-term success of your business.
Market Your Business Effectively
Effective marketing is key to attracting customers to your cooking oil ATM machine business. Use a mix of online and offline marketing strategies to reach your target audience. Social media especially WhatsApp, posters, branding, and word-of-mouth can be powerful tools. Highlight the convenience, affordability, and quality of your cooking oil. Offering promotions and discounts can also attract new customers and encourage repeat business.
Provide Excellent Customer Service
Providing excellent customer service is essential for retaining customers and building a loyal customer base. Ensure that your staff is well-trained and courteous. Address customer inquiries and complaints promptly and professionally. A positive customer experience can lead to repeat business and referrals, which are vital for the growth of your business.
By following these steps on how you can start a salad ATM business in Kenya and make good returns, you can successfully start a cooking oil ATM machine business and make good returns on investment. With thorough planning, strategic execution, and a focus on quality and customer satisfaction, your business can thrive in the competitive market.
Why invest in a cooking oil ATM machine business in Kenya?
Investing in a cooking oil ATM machine business in Kenya presents a unique and lucrative opportunity. Here are several compelling reasons why this venture is worth considering:
High Demand for Affordable Cooking Oil
Cooking oil is a staple in every Kenyan household, used daily for preparing meals. However, the rising cost of packaged cooking oil has made it less accessible for many families. A cooking oil ATM machine offers a more affordable alternative, providing the same quality oil at a lower price. This cost advantage attracts a large customer base, ensuring consistent demand and steady sales.
Cost-Effective Business Model
Starting a cooking oil ATM machine business requires a relatively low initial investment compared to other ventures. The primary costs include purchasing the machine and securing a supply of high-quality cooking oil. Operating expenses are minimal, as the machine is easy to maintain and requires little manpower. This cost-effective model allows for quicker returns on investment and higher profit margins.
Flexibility and Scalability
A cooking oil ATM machine business offers flexibility in terms of location and scale. You can start with a single machine in a high-traffic area and expand to multiple locations as your business grows. Additionally, the business can be easily integrated with other ventures, such as running a store that also sells milk ATMs, water purifiers, and other essential products. This scalability makes it an attractive option for entrepreneurs looking to grow their business over time.
Environmental Benefits
By providing cooking oil in bulk, a cooking oil ATM machine reduces the need for single-use plastic packaging. Customers can bring their own containers to refill, significantly cutting down on plastic waste. This environmentally friendly approach appeals to the growing number of consumers who are conscious of their ecological footprint and prefer sustainable options.
Support for Local Economy
Investing in a cooking oil ATM machine business supports the local economy by creating jobs and promoting local suppliers. By sourcing cooking oil from local producers, you contribute to the growth of small-scale farmers and manufacturers. This not only boosts the local economy but also fosters a sense of community and sustainability.
Ease of Operation and Maintenance
Cooking oil ATM machines are designed to be user-friendly and require minimal maintenance. With clear instructions and simple controls, the machines can be operated by anyone, even without technical expertise. Routine maintenance tasks, such as cleaning and refilling, are straightforward and can be performed quickly, ensuring smooth and efficient operation.
Potential for High Returns
Given the high demand for affordable cooking oil especially in lower income urban centers, and the low operating costs, a cooking oil ATM machine business has the potential for high returns on investment. By strategically placing your machines in high-traffic areas and providing excellent customer service, you can attract a steady stream of customers and generate significant revenue. Partnering with local supermarkets or stores can further boost your sales and profitability.
Community Health Impact
Starting a cooking oil ATM machine business can have a positive impact on the community. By providing an affordable and essential product, you help improve the quality of life for many families because they can consume healthy cooking oil. Additionally, the convenience of having a local source of cooking oil reduces the need for long trips to distant markets, saving time and money for your customers.
In conclusion, investing in a cooking oil ATM machine business in Kenya offers numerous benefits, from high demand and cost-effective operations to environmental sustainability and community support. With the right approach and dedication, this venture can be both profitable and rewarding, making it a smart choice for aspiring entrepreneurs.
Cost estimates for starting a cooking oil ATM machine business
- Buying 50 litres Cooking oil ATM– Ksh35,000
- Rent is relative to location and size but let’s work with Ksh8,000. Remember many premises require that you pay 1 month or 2 months deposit. So we can work with Ksh16,000
- Transport of the ATM machine is also relative to distance and service provider. But if we work with Nairobi metropolis we can put at an average of Ksh3,500
- Business permits & licenses – Ksh4, 000
- Cooking oil stock Ksh,5000
- Miscellaneous costs- Ksh10,000
- Total estimated starting budget = Ksh73,500 which we can round off to Ksh75,000
Based on these estimates we can confidently say that with a budget of Ksh,75,000 you can easily start a cooking oil ATM business in Kenya.
Projected returns of a cooking oil ATM machine business
A salad oil ATM business in a prime location with high foot traffic and a good population of target customers can sell over 100 liters of cooking oil daily. The reason is simple: cooking oil from the dispenser offers the same quality as packaged vegetable oil but at a 20% lower price. This cost advantage attracts customers looking for quality and affordability. By consistently providing high-quality oil and excellent customer service, you can build a loyal customer base and achieve average daily sales of around 80 liters.
The potential for higher sales increases significantly if you partner with a well-known supermarket on a revenue-sharing agreement. Such a partnership can boost your visibility and customer reach, enabling you to sell more than 200 liters of vegetable cooking oil daily. For now, let’s focus on the conservative estimate of 80 liters daily and proceed with some revenue calculations based on this figure.
Sample calculations
Cost of buying Postman 20 liters vegetable oil wholesale price= Ksh3,600 (Postman brand is one of the most common brand sold at salad oil ATMs).
- 4X3,600= Ksh14,400 (4 jerrycans of 20 litres is 80 litres)
- Sell 200 Ksh per litre total sales (200 X 80 litres) Total = Ksh16,000
- Profit per day therefore is 16000-14400=1600
- Monthly gross profit = 1600×30= Ksh 48,000
- Estimated expenses per month = 8000 (rent) + 1500 electricity + 1500 miscellaneous = Ksh 11,000
- Monthly net profit 48,000-11,000= Ksh37,000
With this, you can recoup your invested amount in just 2 months.
Key takeaways when running a cooking oil ATM business to help you make good cash
Despite the potential of a cooking oil ATM machine business thriving, its just like any other business. It give you good returns but it can also be rewarding. To thrive in the business, you need to adhere to the pointers we discussed above. Here are key points to remember:
- Conduct thorough market research
- Find a good location for your cooking oil ATM machine business
- Invest in a reliable cooking oil atm machine
- Establish relationships with trusted suppliers
- Comply with regulatory requirements
- Market your business effectively
- Provide excellent customer service
The cooking oil ATM machine business is profitable, but you will need to invest in a KEBS-approved and high-quality salad ATM.
Get in touch with us today to buy a high-quality cooking oil ATM
- Email us at info@aquatech.co.ke.
- Call us at 0720900777 | 0707419100.
- WhatsApp us at 0720900777 | 0707419100. We are available on WhatsApp for chat inquiries. Send a message for quick queries and prompt responses.
- Leave a comment below. We love to interact with our customers and potential customers online, and we welcome your comments and questions at the bottom of this post or on our social media pages. Share your thoughts, and we’ll address them with care.
- Fill in the contact us form on our contact us page. You can find the form in that page, and provide us with your details, and we’ll tailor our services to your needs.
- Visit our showroom in Ruiru. We are located in Kihunguro stage next to shell Kihunguro along Thika road.