How to Make Ksh 47,000/Month from Cooking Oil ATM Business in Kenya

Are you interested in starting a new profitable business in Kenya? Selling cooking oil using a salad ATM is one of the businesses to consider due to its profitability!

This new and innovative business is changing the way people are buying cooking oil in Kenya, offering a convenient and cost-effective solution.

In this guide, we will analyse the cooking oil ATM business, including the expected profits, costs involved, and how you can get started and be successful.

The Emergence of Cooking Oil ATMs in Kenya

The cooking oil ATM, also known as salad ATM or cooking oil dispenser, is a machine that enables customers to purchase cooking oil in desired quantities, similar to withdrawing cash from a bank ATM. That is how a cooking oil ATM works just like a bank ATM but this time dispensing salad cooking oil.

This eliminates the need for pre-packaged cooking oil containers, enabling customers to buy oil affordably, reducing waste, and providing more flexibility for customers. Oil ATMs have become very popular among customers.

How Profitable is A Cooking Oil ATM Business in Kenya?

The profitability of a cooking oil ATM business is quite remarkable. Let us go into the numbers:

• Cooking Oil Wholesale Price: A 20-liter jerrycan of cooking oil typically costs around Ksh. 4,000 in Nairobi and other regions of Kenya.
• Retail Price: Most cooking oil ATM owners sell cooking oil at approximately Ksh. 280 per liter.
• Profit per Jerrycan: With this pricing, a single 20-liter jerrycan translates to Ksh. 5,600 in sales (20 liters * Ksh. 280), resulting in a gross profit of Ksh. 1,600 per jerrycan (Ksh. 5,600 – Ksh. 4,000).
• Daily Sales: An average shop in a moderately busy location can sell around 20 liters of cooking oil per day, although this figure may vary depending on factors such as demand and location.

Monthly Earnings and Profit of Cooking Oil ATM Business

Based on the figures mentioned, let us break down the potential monthly profit:

• Gross Profit per Day: Ksh. 1,600 (profit per jerrycan) * 1 (average jerrycan sold per day) = Ksh. 1,600
• Monthly Gross Profit: Ksh. 1,600 (gross profit per day) * 30 (days in a month) = Ksh. 48,000

Costs Involved

Of course, there are operational costs to consider. The main expense is electricity, with an average machine consuming approximately Ksh. 1,000 per month.

Net Profit Analysis

After factoring in electricity costs, your estimated net profit would be:

• Net Profit: Ksh. 48,000 (gross profit) – Ksh. 1,000 (electricity cost) = Ksh. 47,000

This is considering the cooking oil ATM machine is installed in an existing business (shop or supermarket). If the machine is placed in new shop and as the only product then one has to consider rent which can be about Ksh. 10,000 still leaving a profit of Ksh. 37,000

How The Cooking Oil ATM Business Enables one To Reach Profitability Easily

The good news is that with a cooking oil ATM machine costing around Ksh. 40,000 (a 50 litres machine), you can expect to break even within a month, meaning your business starts generating pure profit after covering the initial investment.

Benefits of the Cooking Oil ATM Business

Let’s recap the advantages:

• High Profit Potential: Earn an average net profit of Ksh. 47,000 per month.
• Quick Return on Investment: Achieve break-even within a month, ensuring fast returns.
• Low Operational Costs: Electricity is the primary expense, making it a cost-effective venture.
• Meeting Growing Demand: Capitalize on the increasing popularity of cooking oil ATMs in Kenya.

How to Start a Cooking Oil Business in Kenya

Ready to start the cooking oil ATM business in Kenya? Here’s what you need to do:

• Get Your Oil ATM Machine: Invest in a reliable cooking oil ATM machine from a good firm like Peupe Technologies.
• Find a Strategic Location: Choose a high-traffic location especially low (ghetto/slum) and middle income localities.
• Maintain Adequate Stock: Choose a dependable cooking oil seller to ensure consistent supply.
• Promote Your Business: Spread the word about your cooking oil ATM service through a small sign board, flyers and local advertising.

In Conclusion

The cooking oil ATM business in Kenya offers a promising opportunity for entrepreneurs in Kenya. With its good profit potential, minimal operational costs, and a fast return on investment, this venture is certainly worth considering.

Don’t miss out on the chance to invest on a profitable business journey in the fast growing cooking oil ATM sector where you can make Ksh 47 000 per month or more (or less)!