Yes, there is abundance in Africa. But unlocking that abundance is not automatic because we have not witnessed the rise of all (we’re just having the rise of few). To win in Africa, you must improve your pricing strategy.
In any product I bring to the market, I put real efforts on pricing engineering to get things right. Our startups in Tekedia Capital also get that from me: no matter how great the products are, people must afford them before they can use them. Unlike America where shopping is part of entertainment (people buy things and after some months, they donate those items. Check, the tags have not been removed), in Africa, we are value-shoppers because free money is limited.
How do you price? You need to go back to this plot (above). It is called the Fortune at the middle of the pyramid: “the most significant opportunity for African B2C startups lies with consumers who earn between $4 — $8 per day … This is largely because that income band holds the highest concentration of discretionary spending power on the continent, as the graph below shows.”
Registration for Tekedia Mini-MBA (Feb 6 – May 6 2023) has started. Click and register here. Cost is N60,000 or $140 for the 12-week program if you register by Nov 30, 2022. Beat the early bird for free books, discounts and other bonuses.
Strategic pricing does not mean giving things away, it means finding a way to have as many people as possible while capturing more value where possible. That is the playbook of sachetization – and we do a lot of it in Tekedia. In our school, we separated the costs of the main program, review of homework, review of projects, etc so that people can come in at their respective purse capacities. If you lump all together, you could price-out many learners. Put efforts on your #pricing!
The Core Market Segment in Africa – Middle of the Pyramid
#1. Advance your career, run your business better with Tekedia Mini-MBA (Feb 6 – May 6, 2023): cost is N60,000 naira ($140). Click and register here.
#2. Click here and register for Tekedia Startup Masterclass and master business secrets from start-up to unicorn. Cost is N180,000 naira ($400).
#3. Click here to join Tekedia Capital Syndicate and own a piece of Africa’s finest startups with small investment.
Ndubuisi Ekekwe, PhD, Chairman of FASMICRO Group, is the Lead Faculty in Tekedia Mini-MBA. He writes regularly in the Harvard Business Review. Email: [email protected]
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