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|Not All Your Customers Are Yahoo Boys by KingsNdimele: 1:04am On Jun 17, 2020|
Recently, I approached a tailor to in my street to sew a cloth for me and he gave me an overwhelming price. He said, "Don't you know how much Yomi Casual charge per cloth?" I jokingly reminded him that I am not a yahoo boy, Besides, if I wanted Yomi Casual to sew for me, I know the road to Lekki.
This is the mistake most entrepreneurs are making: comparing themselves with bigger brands in terms of pricing. Hey! How much have you poured into building your business and brand that you want to make 70% profit from just one deal. When did you start business, that you want to bill me like Yomi Casual. If those big brands started with a high price tag, they will most likely not be where they are today.
Before you place price tags on your products and services, consider your location. If your customers are majorly low income earners, you cannot give them a 'Banana Island' price.
I remember a classmate of mine, who told me that her 3 in 1 boxers is #5000. A student selling to a student in a federal university where the school fee is less than #30,000 per session.
The average Nigerian spends the larger percentage of his income on food. That means that, for the average Nigerian, everything you sell or offer competes with the price of food. Forget about our packaging on social media, the average Nigerian is very price conscious.
I came to relax in your bar where I can afford my class of beer, yet you want to sell Goldberg to me for #700 per bottle. Haba! If I can afford that, I can also afford one bottle of water at Quilox for #1000.
As at 2014, photographers in Port Harcourt charge at least #300 per hard copy whereas in Ile-Ife, the maximum price of a hard copy is #200 today (except you are being charged per studio time).
During my undergraduate days, you dare not organize a show and sell a ticket for more than #300 even if it is Beyonce that is coming to perform. Else, you will perform for the ghost of your ancestors. Many organizers understand this strategy. But when they go to other campuses, they charge more than 300% of what is being charged in my school. It's just about location.
In a competitive market, whoever has a quality product and an affordable price wins the market. Bigi cola used price strategy to compete with Coca-Cola. Cowbell used price strategy to compete with Peak milk. BOVAS Filling Station uses price strategy to compete with other petrol stations in Nigeria, especially during petrol scarcity. Dangote uses this price strategy to step up his game of monopoly.
At NOVEL Nigeria, for our kind of business, we don't have a fixed price for our services. The average Nigerian will prefer to set up a committee of friends and family, rather than hire an event planner and we know why this is so. Hence, for us, we work within the budget of our clients irrespective of their class. This has been a winning strategy.
The larger population in Africa is made up of largely low income and middle class guys. And we all can't be chasing after the VGC and Maitama guys. These are just a lesser fraction of the market. It is better and easier to make #1000 each from 100 customers than to make #100,000 from one customer. This is the secret of Toyota Company and Dangote Company. Where do you think MTN make the most sales? From the #100 recharge cards or from the #1000 recharge cards? Dear, make your products and services distinct, central and affordable, if you must win and retain more customers.
There's a reason why Facebook, Twitter and Instagram were made free to sign up. Have you suddenly forgotten about the "zero account" strategy that GTBank used to win most of us. Do you think the average Nigerian would have welcomed Uber or Gokada if it was not affordable? Apart from taking pictures, why do you think most of us prefer to buy from Shoprite? Shoprite sells quality and affordable items.
Because your friend sold his plot of land at Yaba for 20 million naira per plot, you too want to sell your plot of land at Modakeke for the same price. Ogbeni, las las na government go convert that land to public cemetery.
Dear businesspeople, stop overcharging your customers. Not all of them are yahoo boys. Price is the biggest challenge of an average customer. If you don't see your customers again, it's most likely they have moved on to a place where they can get same or better quality at a cheaper price.
I have discussed this extensively in my new book titled; SATURN (The Best Business Book For African Entrepreneurs). Make sure you get your own copy. DM (firstname.lastname@example.org) to pre-order at a discount price.
© Kingsley Ndimele
|Re: Not All Your Customers Are Yahoo Boys by Johnny1013(m): 1:27am On Jun 17, 2020|
This is some nice piece .......Love this
|Re: Not All Your Customers Are Yahoo Boys by KingsNdimele: 4:40am On Jun 20, 2020|
Johnny1013:Thanks for reading, Johnny
|Re: Not All Your Customers Are Yahoo Boys by gnykelly(m): 4:55am On Jun 20, 2020|
yeah you are right. during Jonathan administration when there was free money if you enter a barbing salon to have a cut was 7k. everything was just up. now dem no dey telli pesin
|Re: Not All Your Customers Are Yahoo Boys by KingsNdimele: 4:05am On Jun 21, 2020|
gnykelly:You sabi...e be things
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