"My prices are based on my talent, not your budget".

I first heard this statement from an entrepreneur who was struggling to make ends and ended up closing his business barely three months down the line. And yet, it appears to be a common statement among SMEs. 

prices

To succeed in business, your 'WHY'- the reason for your existence must be clear in your mind and communicated to your customers in an appealing and emotional manner. Your WHY- not your talent determine your success. Think about Apple, Samsung, HP, Lenovo and other related computer companies- they all have the same software, the same talent yet only one dominates the market.

Running a business is not cast on stones. Business owners are confronted with many challenges and the 21st century customer is not concerned with your talent but rather by the value your product will have in their lives. As entrepreneurs, we do not exist for ourselves but rather to meet the needs of our customers. This must be clear and should be at the forefront of every strategy we make. Does your price then reflect the perceived value of your product? Is the next question.

Price has often been considered as a differentiating factor for businesses, when establishing themselves. Rightly so, since our society englobes different social classes and the masses possess the lowest fraction of the country's wealth. 

Let's take Samsung for example, every year the company releases at least 2 new phones (a S and Note series). The costs are relatively high and yet attract a specific target market who happen to be price insensitive, and are more concerned about THEIR images and the perception they will portray. This, however, did not prevent Samsung to unveil new products for those who could not afford the S series but wanted class. In both instances, the company did not communicate price, it communicated value.

samsung

As entrepreneurs we must link what we want with what we are willing to risk. In this volatile age, creating value for your customers is not just a matter of talent but it is ensuring that:

  1. Your staff are committed to testing new ideas that meet the needs of your customers rather than merely executing new ones,
  2. Your WHY remains at the forefront of every strategy,
  3. Your communication strategy takes into account the elements listed above. With 51 million people online in Kenya, your message can impact or destroy your brand.