Have you seen people selling fresh milk from milk cans from their shops? If yes then these people are doing milk dairy business.
This business is unknown to many people which makes this business very less competitive.
As all over India milk is considered as dudh so this business is also known as the Dudh dairy business.
With this post, I will share step by step process of starting this business & how my friend is earning 50,000 rupees per month from this business.
Here are the things which you will require to start milk dairy business:
1. Buy Milk cans & Milk Testing Machines
Milk cans are used to store milk while transporting from farmers to the shop.
Aluminium & steel cans are costlier than plastic cans, so in starting you can go with plastic cans.
Along with this you also need a milk testing machine like a lactometer, these machines help to find any kind of adulteration in the milk including water very easily.
The total cost of these machines can go up to 80,000 or more, depending upon the company and quality of the product.
To reduce any kind of financial burden a person can buy a lactometer which is very cheap and used to measure adulteration of water in the milk.
2. Purchase liters & freezers
A liter is a measurement vessel made of either aluminium or steel which is used to measure milk, in the milk dairy business a person will need 3-4 liters of 500ml & 1liter.
Freezers are used to store milk that is not sold on the same day, in starting a person will need one freezer.
3. Find Good Farmers
After this we need to find good farmers who are willing to sell their milk, most of the time these milk farmers are found in villages.
Probably you are thinking that finding these kinds of farmers is very hard?
The answer is ‘no’ because mostly in a village there are many families which sell milk, so you can contact them one by one.
4. Check milk prices
Usually, the difference between the milk price of the city & village is 10-20 rupees i.e if the price of cow milk in a city is 40 rupees per liter then there is a high probability that the price of the same milk will be 25 rupees per liter in villages.
If the city in which we are living has a milk price of 40 rupees per liters & we are getting milk at the rate of 25 rupees per liter then nothing is best than this.
5. Arrange vehicle for Milk Transportation
To transport milk from farmers to the shop we will need a bike or a car.
If we are bringing 50 – 60 liters of milk per round then the bike is enough & the quantity is more than this like 100 – 200 liters of milk then we will need a car for transportation.
6. Take a Shop on Rent
The shop is the main place in the city where we will sell our milk. It can be our own land or we need to take a shop for rent.
The location of a shop directly impacts the earning of the milk dairy business.
If the shop is located in the center of the city then there is more probability of high customer engagement because most of the crowd wanders in the center of the city.
But if the location of the shop is at the outside of the city then our shop will see less customer engagement indirectly fewer sales of milk.
So, as per my experience, it’s very important to have a shop in the center of the city or main market areas.
7. Find Good Customers
Customers are the man & women who purchase products from any shop.
In starting, we will face problem to find good & loyal customer, because as we have just started so nobody knows about our shop.
To get some customers we can tell any relatives, friends, etc. to purchase milk from us & as a result, we will get initial boosts up.
Marketing of Milk Dairy Business
Marketing help people to know about your business & it’s location in the city, here I will share some secret marketing ways which can increase the customers very fast in this business:
1. Place Big ad Board: You need to place a board on the front side of the shop or you can stick a board on the upper front part of the shop on which your shop name should be mentioned with milk cans photo.
This will make people to look once at your shop.
2. Give ads in the newspaper: Almost every house in a city uses a newspaper to read the latest news about their country & their cities.
We can place a good size ad in newspaper so that people can easily read the ad of our shop.
3. Decrease the rates: This is the best marketing of milk dairy business in which we can reduce the prices of milk i.e lower than the market price.
Let’s say the rate of milk in the market is 35 rupees per liter then we can sell our milk at 30 rupees with the same or better quality than market milk.
No doubt, this will decrease our profit but the demand will automatically increase in our shop.
4. Let your quality make the noise: If you will provide good quality milk to your customers then they will automatically tell their neighbours that this shop is providing very quality milk.
This marketing is very effective & free as well.
5. Providing Door to Door Service: You can decide a limit, for example, if a person buys more than 5 liters of milk per day then you can provide doorstep service without delivery charges.
This will help you to gain some extra customers.
Profit Margin in Milk Dairy Business
The profit margin in milk dairy depends upon the price on which you buy and sell the milk.
For example, if you buy cow milk at the rate of 25 rupees & you are selling at 38 rupees then the profit margin is 13 rupees per liter.
If the gap between buying & selling price is less then the profit margin will be less, but on an average, the profit margin is 10 rupees per liter.
My Friend’s Story
My shop is around 500 meters away from my friend’s shop but it’s in the center location of the city.
He started this shop in 2010 since then he never looked back. Now he is selling too much milk in his shop in both morning & evening.
The amount(50,000) which I mentioned in the title is the amount which he was earning in 2016 but at present in 2021 he earns a lot more than this.
Now, he carries 200 liters of milk in the morning and the same in the evening, so the total quantity which he sells in his shop is 400 liters.
And as per my knowledge, he purchases at 28 rupees from the farmers and sells at 40 rupees in the market, which means he earns 12 rupees per liter.
So for 400 liters, he earns 400 × 12 = 4800 per day, yes you have heard right.
He has also hired 4 – 5 workers in his shop which distributes milk to the customers because 400 liters of milk is a big quantity.
And this is the real fact, if there is a milk dairy shop in your city then you can check the crowd in the evening for better confirmation.🤠
Milk Diary Business Investment
The main investment in this business is of milk testing machine and of a vehicle which is required for transportation.
If a person has a bike or car then the investment in the milk dairy business is 80,000 to 90,000 rupees including milk cans, milk measuring instruments, etc.
Things to Remember
Here are some things which you need to pay attention while starting this business:
1. Don’t add water to Milk: Your customers can’t see water added in the milk but when they will consume the milk, they will find that extra water has added to the milk by the shop owner & they will stop purchasing milk from your shop.
So try to be loyal to your customers and never try to add water to milk, also advise farmers to do the same.
2. Be on time: Time is very important in this business, if you are not delivering milk at a time in your shop then it will impact your earning.
Try to deliver milk around 7:30 PM in the evening at your shop.
Is milk dairy business profitable?
Yes, it’s profitable, I have also shared my friend’s story in this post about his success.
Like other businesses this business is also dependent upon the selling of the milk the more you sell the more you earn.
I have shared all the points about this business, I write many posts about business so you can check them.
Disclaimer: All the information provided in this post is for educational purposes only. This site or I will not be responsible for any profit or loss in any business. Please do your own research before starting any business.