Salad oil ATM vending machines have emerged as a new and innovative solution to address the challenge of accessibility to affordable cooking oil in Kenya. These vending machines work like traditional ATMs but instead of dispensing cash, they dispense cooking oil. The machines have become popular because they offer customers an affordable and convenient way to purchase oil, as they do not require them to carry large amounts of cash or travel to distant shops to buy oil.
The concept of the salad oil ATM vending machine was first introduced in Kenya in 2019 by a Kenyan company called Tassmatt Limited, which had previously focused on Milk Dispensing Machines and Water Purification Systems. The company saw an opportunity to address the challenge of access to affordable cooking oil, which is a basic necessity for many Kenyan households but can be expensive and difficult to obtain in some areas. The company’s first machine was installed in Nairobi’s Umoja neighborhood, and since then, the concept has spread to other parts of the country.
The vending machines operated on a prepaid system, where customers loaded money onto a card that they could use to buy oil from the machine. To use the machine, customers simply inserted the card into the slot and selected the amount of oil they would want to purchase. Today, purchase has been made easier, the machine is either coin inserted using a special PLC or money paid to the shop keeper inform of cash or Mpesa. The machine then dispenses the oil. The vending machines have a capacity of up to 100 liters of oil and can dispense a variety of cooking oils, including vegetable, sunflower, and palm oil. At Tassmatt Limited, the machines are sold on 20L, 40L and 60L capacity though this can be customised to a larger capacity on order.
Advantage Of Salad Oil Vending Machine In Kenya
One of the main advantages of salad oil vending machines is that they provide a cost-effective way for customers to purchase cooking oil. The machines offer competitive prices, which are often lower than those charged by traditional retail shops. Additionally, customers can purchase small quantities of oil at a time, which can be especially beneficial for low-income households that cannot afford to buy large quantities of oil at once.
The vending machines have also helped to promote financial inclusion by providing a secure and convenient way for customers to make purchases without carrying large amounts of cash. Mpesa allows customers to budget and manage their spending on oil, which can help them to better manage their household finances.
Another benefit of salad oil vending machines is that they provide employment opportunities for local communities. The machines require regular maintenance and refilling, which creates job opportunities for people in the area. Additionally, the machines are often installed in local shops or markets, which can help to attract more customers to these businesses and stimulate economic growth in the community.
Salad oil ATM vending machines have emerged as an innovative solution to address the challenge of access to affordable cooking oil in Kenya. These machines provide a cost-effective, convenient, and secure way for customers to purchase cooking oil, while also promoting financial inclusion and creating job opportunities in local communities. While there are challenges associated with the vending machines, their potential benefits make them a promising solution for addressing the issue of accessibility to affordable cooking oil in Kenya.
The salad oil vending machines have gained popularity in Kenya since their introduction in 2019. According to Sales by Tassmatt Limited, they have currently sold over 10,000 salad oil vending machines installed in various locations across the country. These machines are mostly found in urban areas and informal settlements, where access to affordable cooking oil can be a challenge for many households.
The vending machines have also been praised for their role in promoting health and safety. In some areas, traditional retail shops often sell cooking oil in reused containers that may be contaminated, which can pose health risks to consumers. The salad oil vending machines, on the other hand, dispense oil in sealed containers, which reduces the risk of contamination and ensures that the oil is fresh and safe for consumption.
Challenges Associated With Salad Oil ATM Vending Machine In Kenya
However, there are also challenges associated with salad oil vending machines. One of the main challenges is the need for reliable power supply to operate the machines. Many areas in Kenya experience frequent power outages, which can disrupt the operation of the vending machines. Additionally, the machines require regular maintenance and monitoring to ensure that they are functioning properly.
Another challenge is the need for consumer education. Many people in Kenya are still unfamiliar with the concept of vending machines, and may not know how to use them or trust their reliability. Therefore, it is important to provide education and awareness campaigns to promote the use of salad oil vending machines.
In conclusion, salad oil ATM vending machines have emerged as a promising solution to address the challenge of access to affordable cooking oil in Kenya. These machines provide a cost-effective, convenient, and secure way for customers to purchase cooking oil, while also promoting financial inclusion and creating job opportunities in local communities. However, their success will depend on overcoming the challenges of installation, maintenance, and consumer education.
Profitability Of Salad Oil ATM Vending Machine In Kenya
The machines are installed in various locations such as supermarkets, shops, markets, and other high traffic areas where customers can easily access them.
The profitability of salad oil ATM machines in Kenya is dependent on several factors, including the cost of the machine, the cost of the salad oil, the location of the machine, and the pricing strategy employed by the operator.
The cost of the machine is one of the major factors that determine profitability. Salad oil ATM machines vary in cost depending on the size and capacity of the machine. A smaller machine with a capacity of 20 liters can cost around Ksh 40,000, while a larger machine with a capacity of 40 liters can cost upwards of Ksh 65,000. It is important to note that the cost of the machine is a one-time expense that can be recouped over time through the sale of salad oil.
The cost of the salad oil is another factor that affects profitability. The price of salad oil can fluctuate depending on market conditions, but it is generally affordable in Kenya. Currently, the average cost of salad oil is Ksh 300-600 per liter depending on brand, and this price can be lower if purchased in bulk. To maximize profitability, the operator of the salad oil ATM machine must ensure that they are purchasing the salad oil at the most affordable price.
The location of the machine is also a critical factor that determines profitability. A well-placed salad oil ATM machine in a high-traffic area such as a supermarket or petrol station can attract a large number of customers, leading to increased sales and profitability. The operator must ensure that they secure a strategic location that is easily accessible to potential customers.
The pricing strategy employed by the operator is also important in determining profitability. The operator can choose to sell the salad oil at a fixed price per liter or use a variable pricing strategy that takes into account market conditions. A fixed pricing strategy is easy to implement but may not be the most profitable option. A variable pricing strategy, on the other hand, can be more profitable but requires careful monitoring of market conditions.
In conclusion, the profitability of salad oil ATM machines in Kenya depends on various factors such as the cost of the machine, the cost of the salad oil, the location of the machine, and the pricing strategy employed by the operator. With proper planning and execution, salad oil ATM machines can be a profitable business venture in Kenya.