Sometimes ago, I, alongside my boss traveled to Patigi Village in Kwara State for a humanitarian assignment. On getting there, we lodged in the only guest house in that neighborhood - ECWA Guest House. We couldn't believe our ears when the attendant told us that one room per night cost just #1,000. Guess what? Apart from the fact that the room had no TV, it was not less than the standard room we had lodged at Rockyson Hotel in Akoko, Ondo State where we paid #8,000 for a room per night. Despite the ridiculous amount, the room service provider still worshipped us like a god.

After our duty at Patigi, we traveled to Jima Village at Niger State for another assignment the following day. By the time we got to Abuja to catch up with our flight at the Nnamdi Azikiwe International Airport, I was already very hungry. While waiting at the departure hall, I walked up to the airport restaurant to get some food. "How much is a plate of rice?" The guy replied, "Just #700 per spoon." Initially, I thought he was joking. Trust me, I stylishly reversed my legs so that he could attend to other people. I asked myself, "Kingsley, how much is a congo of rice?"

I didn't even know when my hunger disappeared. There, I knew the value of Iya Ibeji who sells food in my street. With #700, Iya Ibeji will give me a VIP treat.

Was the airport restaurant wrong to have charged such price? No! Was the management at ECWA Guest House wrong to have charged such price too? No! Was the manager at Rockyson Hotel wrong to have charged such price? No! What about Iya Ibeji who can perform wonders on your stomach with just #700 - was she wrong too? No!

Their different locations made the difference in their prices. Dear, location remains a strong determinant factor in price strategy. Don't just take your products or services into the market without first considering the location of your potential customers. Else, you may be selling a time bomb.

In my new book SATURN, you will learn more about how this and many more topics that I have discussed extensively. I mean, practical solutions to survive in the African market. SATURN is The Best Business Book For African Entrepreneurs. Pre-order now at a discount price (#1,000) via kingsleyndimele95@gmail.com

© Kingsley Ndimele
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