Whether you are considering setting up a new business or add onto your range of products and services, the Salad ATM machine presents a good venture with a promise of steady returns and perhaps with a great location with regular customer traffic, the idea might be excellent for implementation both in rural and urban set ups.

After a consideration of all relevant facts and the decision to start the profitable business of vegetable oil retailing using the Salad ATM, the next thing is to plan on the steps to operationalize your business. Here are some of the things to put in consideration in starting up the business.

Finding a Good Location for Your Vegetable Cooking Oil ATM Machine Business

The secret to success in this business lies in achieving a large volume of sales per day. You therefore should locate your business in an area that is adequately populated. The more walk-in customers your ATM can attract, the better. But what if finding such a location proves difficult? Well, worry not.

You can approach your nearest supermarket or mini-market and negotiate a revenue sharing agreement. Like there is one guy from kahawa who has partnered with Quickmart. They will give you the space and you will give them the machine and vegetable oil to dispense. Smart…isn’t it?

 Selecting the best Vegetable Cooking Oil ATM Machine supplier or dealer

There are various options when it comes to buying a vegetable oil machine and prices also varying depending on the dealer and whether the machines are locally made or imported from outside the country. With the option of importing, you could consider buying the machine in separate parts to be assembled locally. That will help you save on tax.

Some buying factors will include the ease of use and also service and quality guarantee in the form of a warranty lasting for about 12 months to be assured of the reliability of the machine and that you will acquire service assistance in installation and maintenance where need arises with the period of the service and quality warranty.

For maintenance purposes as well its shrewd to consider buying a machine whose spare parts are readily available locally and insist on warranty cover on all your purchases.

In both buying options its more recommend you to purchase one locally because of maintenance that may be required and spare part availability locally . Also remember locally made is way cheaper than imported which costs between Ksh 250,000 to 400,000 before tax

Finding a reliable Cooking Oil supplier and getting relevant licenses.

In order to ensure that the business runs uninterrupted, you will need a reliable and consistent supplier of the vegetable oil which is your business commodity. There are various manufacturers especially from manufacturing plants in Thika and Nairobi such as the Bidco company who have proven reliable and dependent among other companies.

Another critical element which is mandatory for you to operate the business legally is the license for operating the business (business permit) .Remember cooking oil is not perishable hence, doesn’t require any board licenses.

A small business house will cost rent of Ksh 6000, and business permit will cost you about  Ksh 4000 for a single business permit depending on the location as the rates vary with the high rates being in metropolitan cities while other smaller towns outside Nairobi such as Kajiado, Machakos,will normally have lower rates.

An Estimate Budget for Your Vegetable Cooking Oil ATM Machine Business

Buying Vegetable Cooking oil ATM (100 Litres) – Ksh75, 000

Rent & Deposit – Ksh12, 000

Transport – Ksh1, 000

Relevant Licenses – Ksh4, 000

Maximum starting budget = Ksh93, 000

Profit potential (estimates)

A well-established vegetable cooking oil ATM can sell between 100litres to about 180 litres of vegetable cooking oil per day. This is because ATM milk is of the same quality as packaged vegetable cooking oil yet 20% 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 80 litres a day.

There is even more potential if you partner with a renowned supermarket on a revenue sharing agreement. That way you can sell more than 300 litres of vegetable cooking oil per day.

CALCULATIONS USING 80 LITRES AS THE BASE QUANTITY SALE

Four- 20 litre jars of oil each @ 2100 Total= 8,400

Sell 160sh per litre total sales (160 X 80 ltrs) Total = 12,800

PROFIT per day =12,800 – 8400 =4,400

Estimated Expenses per day (rent=200+employee= 400) total =600

NET PROFIT = 3,800

Monthly NET PROFIT= Ksh114, 000

MINIMUM PROFIT per Month = Ksh114, 000 (Per ATM)

Going by this rule, you will need just 2 month to recoup your initial investment.

In conclusion, the Vegetable cooking oil ATM is relatively easier procedure wise to set up and operationalize, it also takes up smaller space to set up and therefore, could be started just beside your shop to cut cost on a new business premise. Business partners can also come together in partnership and open one then another and keep generating money. Remember cooking oil is not perishable it can even stay 3 months without going bad. It’s definitely a business worth consideration and from the information I believe the details are effective in aiding decision making for entrepreneurs.

 

To get the Salad ATM/ Vegetable oil vending business and reap the benefits in the growing market, contact Neema Technogies company that supplies high standard Water ATM machines countrywide for enquiries or to make an order call: +254792880966 or Email: info@neematechnologies.co.ke/ today.