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How to Price Milk per Litre at a Milk ATM: Costs, Margin and Competitive Pricing

Herritech engineering teamUpdated 18 October 20263 min read

How to Price Milk per Litre at a Milk ATM: Costs, Margin and Competitive Pricing
Pictured: 100 Liters Milk vending machine (mdf concept) and Lactometer.
Quick answer: Price per litre = buying price per litre + transport + power and cleaning + losses + rent and staff per litre + machine repayment per litre + your margin. Divide each monthly cost by the litres you expect to sell. Then check local shop and packet prices and set a price that is competitive but still covers every cost. Set the ATM to dispense smaller amounts (half litre, 250 ml) at slightly higher prices per litre to cover handling.
Key facts
  • Add every cost per litre
  • Divide by litres sold
  • Check local prices
  • Smaller sizes cost more per litre
On this page
  1. Costing Worksheet
  2. Worked Example (Illustration Only)
  3. Milk ATMs on H-TECH’s Price List
  4. Pricing Smaller Quantities
  5. Staying Competitive
  6. Frequently asked questions

Costing Worksheet

Cost lineHow to work it out per litre
Milk (farm-gate or supplier price)Price paid per litre
TransportMonthly transport ÷ litres bought
Power (cooling) and cleaningMonthly bill and detergents ÷ litres sold
LossesSpilt, rejected or spoilt litres (often a few percent) spread over sales
Rent, permits, staffMonthly total ÷ litres sold
Machine repayment or depreciationMonthly repayment ÷ litres sold
MarginThe profit per litre you need

For a full calculation use the milk ATM profit calculator.

Worked Example (Illustration Only)

These numbers are made up to show the method; use your own. Suppose your monthly costs other than the milk itself (transport, power, cleaning, rent, permits, a part-time attendant and the machine repayment) total KSh 30,000, and you sell 100 litres a day (about 3,000 litres a month). That is KSh 10 per litre on top of what you pay for the milk, before your margin. At 200 litres a day the same costs fall to KSh 5 per litre. This is why location and volume matter more than a few shillings of price.

Milk ATMs on H-TECH’s Price List

Current listed prices incl. VAT (updated 18 October 2026).

Pricing Smaller Quantities

Staying Competitive

See milk ATM machine cost and milk ATM vs packaged milk.

Watch: Milk ATMs

Milk ATM in Kenya (portable fridge design)Video · 0:14 · Herritech Ventures on YouTube
Portable milk ATM, locally manufacturedVideo · 0:24 · Herritech Ventures on YouTube

Frequently asked questions

How do I calculate the price of milk per litre?

Add the buying price and every monthly cost divided by litres sold, then add your margin.

Why do milk ATM prices change?

Farm-gate prices rise and fall with the seasons.

Should a half litre cost half the price of a litre?

Usually slightly more than half, to cover handling.

How can I lower my cost per litre?

Sell more litres from the same machine, reduce losses and cut power waste.

How do I set prices on a milk ATM?

The supplier configures the dispensing price; ask for training on changing it.

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