Cooking oil is an essential commodity in every Kenyan household. With the rising cost of living, many consumers prefer to buy cooking oil in small, affordable quantities rather than in bulk. This growing trend presents an excellent business opportunity for entrepreneurs through the cooking oil ATM business in Kenya.
A cooking oil ATM machine allows business owners to sell cooking oil in customized quantities, making it a convenient and profitable venture.
Profitability of the Cooking Oil ATM Business in Kenya
The cooking oil ATM business is highly profitable due to the favourable price margins. Here is a simple breakdown of how much you can make:
- Buying price: A 20-litre jerrycan of cooking oil costs around Ksh 4,400.
- Selling price: You sell 1 litre of cooking oil at Ksh 280.
- Total revenue per 20-litre jerrycan: 20 litres × Ksh 280 = Ksh 5,600.
- Profit per jerrycan: Ksh 5,600 – Ksh 4,400 = Ksh 1,200.
If you sell three 20-litre jerrycans in a day, your daily profit is:
- 3 × Ksh 1,200 = Ksh 3,600 per day. A moderately busy shop usually achieves this.
- In a month (assuming 30 days), you can make: 30 × Ksh 3,600 = Ksh 108,000
This profit margin makes the business an attractive investment for small-scale shop owners and established shop owners looking to increase their income.
Understanding the Cooking Oil ATM Business
1. How Cooking Oil ATM Works
A cooking oil ATM machine is a simple dispensing unit that allows customers to buy cooking oil in small quantities. The process is as follows:
- A customer requests a specific quantity of cooking oil by price, e.g., sh 20, sh. 50 or sh. 280
- The business owner inputs the amount into the salad ATM machine.
- The machine dispenses the oil into a container provided by the customer.
- The customer pays for the exact amount received.
This model is convenient for low -income earners who cannot afford large quantities at once. It also minimizes wastage and ensures affordability for all.
2. Startup Costs and Investment
To start a cooking oil ATM business in Kenya, you need:
- A cooking oil ATM machine
- A steady supply of cooking oil
- A strategic business location
- Marketing and branding
The cooking oil ATM price in Kenya varies depending on the machine’s capacity and features and the costs ranges between Ksh 35,000 and Ksh 130,000. You can check the current cooking oil ATM prices here.
The oil ATM machine price in Kenya also depends on the supplier. It is essential to buy from a reputable seller like Peupe Technologies who offers warranties, installation, and after-sales services.
How to Start a Cooking Oil ATM Business in Kenya
1. Choosing the Right Location
A high-traffic location increases sales. Ideal places include:
- Busy residential areas
- Markets and trading centers
- Near grocery stores and supermarkets
- Near universities and colleges
2. Getting a Reliable Cooking Oil Supplier
To maintain consistency, find a trusted supplier offering quality cooking oil at reasonable prices. Consider wholesale prices and purchases to get discounts and reduce costs.
3. Marketing Your Business
Use the following strategies to attract customers:
- Word-of-mouth marketing: Encourage satisfied customers to refer others.
- Banner and poster: Use banners and posters on your shop entrance as well as nearby residential buildings
- Signage and branding: Use eye-catching banners to draw attention.
- Discounts and promotions: Offer discounts for bulk purchases to increase sales.
4. Customer Service and Hygiene
- Ensure the machine is clean and well-maintained.
- Offer excellent customer service to retain buyers.
- Provide a clean space where customers can comfortably access the ATM.
Challenges in the Cooking Oil ATM Business
Like any business, the cooking oil ATM business faces challenges such as:
- Price fluctuations: Cooking oil prices change frequently, affecting profit margins.
- Competition: More businesses are entering the market, requiring unique strategies to stay ahead.
Where to Buy a Cooking Oil ATM Machine in Kenya
If you are looking for a reliable and high-quality cooking oil ATM machine in Kenya, Peupe Technologies is the best option.
Peupe Technologies provide durable and efficient machines at competitive prices. Their after-sales support ensures your business runs smoothly without technical hitches.
Why Choose Peupe Technologies?
✅ Affordable oil ATM machine price in Kenya
✅ High-quality and durable machines with optional Lipa na Mpesa feature
✅ Installation and training support
✅ Excellent customer service and warranty
Final Thoughts
The cooking oil ATM business is a lucrative venture in Kenya, given the high demand for affordable cooking oil. With a reasonable investment in a quality ATM machine, a strategic location, and excellent customer service, you can generate good profits.
If you are ready to start your cooking oil ATM business, purchase your machine from Peupe Technologies today for the best quality and pricing. Don’t miss out on this profitable opportunity!
