“You need guts and discipline”: Finding new customers with Idonrenyen Enang #SheHive Lagos
SheHive Lagos brought together the best of the bunch and of course, our speakers were just as awesome. The distinguished marketing practitioner and former Managing Director of L’Oreal West Africa and Samsung West Africa, Idonrenyen Enang was one of them. With a career spanning almost three decades in several key positions, Idonrenyen has a wealth of experience in several areas. This includes brand management, marketing management, strategic planning, organizational redesign and more. He showed us how to take the headache out of finding new customers and never lack them again. And we just couldn’t resist sharing some of these lessons with you! What marketing really is You see, marketing isn’t about sponsorship and advertising. The whole essence of this shouldn’t be lost on you. Marketing is actually about identifying a need and making money out of it. In between this, is the supply chain. Of course, you’re an entrepreneur and out to make money. But there are so many different things to do in order to get people to actually cough out money for that product or service, no matter how good. There has to be some transfer of value and that’s where profit comes in. Here’s the thing; there’s no way to handle this except by really knowing how. And even if you could, you would drive yourself crazy trying to keep up with everything, wouldn’t you? So, how do you snake around such a problem? Go to the shrine Start-ups typically have short menus at their disposal but you need to broaden your scope. Your menu should include advertising, strategy, branding, research and internet. Everyday should be research day. Why didn’t she/he come for a purchase today? Why did they not like our product/service? That’s how the mind of a marketer should work. It may feel a little overwhelming getting people to patronize your products or services in the current recession but it is the best time for creativity and innovation. In fact, this is the best time to launch a business. Understanding consumption and purchase occasions is the basis of a successful sales strategy. In addition to this, you need to determine the following. The who of marketing —discipline This is about you. You simply need to be a rebel. Lots of guts and discipline are needed to increase patronage of your brand. The what of marketing Basically, the what is about metrics —numbers. If you can’t triangulate numbers and make them speak to you, then your investments might just go down the drain. For example, the reason why you use a particular brand of toothpaste is the physical satisfaction you get from it. After this stage, comes the emotional attachment. The whole experience is where that brand gets a hold of you and that’s brand equity metrics. The why of marketing —the essence The idea is to market the essence. You need money and every stakeholder needs value and satisfaction. You’ve got to meet somewhere between the two. The how of marketing Now, you may have the best product or service there is in town but marketing doesn’t stop there. You’ll need to rightly position yourself by consistently improving on your customer experience. There’s an art and science to delivering to the end user. Positioning tells you what type of product to innovate, how to improve on it and what sponsorship to ask for. Finally, Idonrenyen shared 5 keys to tracking performance, remember them. Availability Merchandising Space/equipment Price to value Quality And there here you have it, ladies. Entrepreneurship may seem hard but knowing what to do is essential to finding new customers. When building a business, give yourself every advantage that you can. Try these ideas by Idonrenyen and we bet, business will be easier! What could possibly be better than participating in the #SheHive action? Actually attending the next one, obviously. See you in Joburg!
4 ways to overcome your fear of public speaking
[bctt tweet=”Feel the world is crumbling around you when you speak in public? It’s time to overcome your fear” username=”SheLeadsAfrica”] When it comes to public speaking, we’re all different. For some people, it can come easily, and for others, it can feel as if the world is crumbling down. Especially when you’re trying to speak without sounding like you don’t know what you’re talking about. It’s frustrating. But keeping quiet and not practising will not make it better. This can be in the workplace, in school, even in social settings. Is the right time to get exposed to it? A good starting point would be these observations I’ve made over the past few years: 1. Set a target for networking events and conferences It’s very easy to go to networking events and decide to only speak to one person before the event starts. One lesson I learnt was to go to an event with the intention of having spoken to three other people. Speaking to more than one person helps you deal with different kinds of people. It also helps you learn how people react to you speaking, and in learning how to interpret people’s body language. [bctt tweet=”Speaking to more than one person helps you deal with different kinds of people” username=”SheLeadsAfrica”] Learning someone’s body language will help in determining in whether or not they’re interested in what you’re saying. People become disinterested during conversations therefore the more networking events you attend or more people outside your circle you interact with, the more you learn to be able to turn the conversation around. Even though this isn’t public speaking, learning to read people’s body language in a smaller setting can feed into how you interpret people’s interests and attention span in larger crowds. 2. Join Toastmasters One of the best pieces of advice received a few months ago was to join Toastmasters to help overcome my fear of public speaking. This was, and still is a daunting idea. Firstly, it requires that you actually speak in front of people you wouldn’t initially know. But this is a great way to learn, and also a good step towards overcoming your fear. You could also bypass attending the networking events, because joining a Toastmaster’s club helps you get right into speaking in front of people. But it’s important to take baby steps and move at your own pace. It becomes second nature to you the more you are acquainted with people and the art of public speaking. 3. Volunteer to facilitate meetings and workshops If you’re in corporate and can get the chance and experience to facilitate a meeting or workshop, then volunteer to do so. One of the best, and most challenging aspect about this is that you’ll find that you’ll be speaking to different people at different meetings or workshops. This is where studying the body language and possibly joining a Toastmaster’s club will come in handy. [bctt tweet=”It’s important to keep calm and take a few pauses to get over your fear of public speaking” username=”SheLeadsAfrica”] 4. Prepare yourself and keep calm Prepare yourself and keep calm before any public speaking that you do. Especially when you’re still in the beginning stages of trying to overcome your fear of speaking in public. Write a few notes to keep yourself on track and keep these with you during public speaking. But it’s also important to keep calm, take a few pauses in between. Taking those few pauses will help you process whether or not you have been speaking too fast. The audience will also receive your message clearly when you speak calmly.
Some things have to take the back seat: Balancing work + life #SheHiveLagos
Although undoubtedly one of the most fun events of the year, SLA’s SheHive is also one of the most informative gatherings for smart African women. This weekend, the city of Lagos pretty much exploded thanks to #SheHiveLagos. We could wax rhetoric about all the wonderful ways you can achieve some balance, but let’s be real. At the end of the day, you need a way out of those particularly uninspiring mornings where you just want to give up on everything. To help Motherland Moguls shatter glass ceilings across all industries without breaking a sweat, Arese Ugwu, founder of Smart Money Africa, Nimi Akinkugbe, founder & CEO of Bestman Games and Nibi Lawson, founder of The Kinky Apothecary gave the best advice ever. You’ll need to bookmark this! What is balance to you? What does it mean to be able to balance work with life? Arese: I believe in balance but not in the way most people view it. I spent a lot of time in my 20s trying to find balance. But you can’t have it all put together all the time and that’s fine. You should be able to focus on your career and not feel guilty. Learn to live with it. Find out what best works for your lifestyle. Nimi: I have never had total balance in my life. Some things have to take the back seat and that’s totally okay. Don’t knock yourself out on everything. You can’t insist on micro-managing everything. Nibi: Find out how things work with you. Compartmentalize them. Do things at the time you’re able to and when at your best. As busy women, how do you cope with handling personal responsibilities? Arese: There are times when my daughter says, “Mummy, you work too much”. I used to feel bad but I found a way to make her understand that my working hard is tied to the quality of life I am able to provide her. Now, while she’s doing homework, I work. This works for us as we have a routine for homework, conversations and play dates. Nimi: Guilt trips are real. Most times, I’m not able to do school runs but I’ve found a way around that. I decided on 3 days, a week. Support systems are also critical. You need the help of friends, siblings and a spouse (if you have one). My mother-in-law is my greatest support. She kicks in just when I need her. Nibi: I’m not married yet and I feel guilty about not having time for my friends (and weddings). But I find ways around these things. Priority is key. How do you decide on what to prioritize? What models do you make use of? Arese: I think everyone has to learn how to say, ”No”. It’s really that important. If you have to spend all day responding to emails, DMs and tweets, you will never get work done. How then do you pay your bills? I remember being on a board where their expectations for my responsibilities were quite different from mine and of course, I politely declined. Figure out your priorities and focus on them. Nimi: I have a broad picture of what I do. I don’t have idle time. And yes, even my thinking time is planned! I’m definitely not one to attend four weddings and a funeral on a Saturday. It takes a lot to juggle family, friends, business and a career but you can’t sit and worry about how hard it is. You’ve simple got to prioritize. Nibi: My hair business started as a hobby but even as a banker then, I had to decide between the two. You simply have to be courageous enough to decide what you need to do. Looking back at your 20s, what would you have done differently if you knew better? Arese: Maybe I would have gone harder on building my career. Ladies, balance should not exist in your dictionary. Understand that this is a time to build yourself and go hard on yourself. Nimi: Financial knowledge and discipline are very important as a lady in your 20s. Also, develop yourself and don’t wait for things to happen. Nibi: In my 20s, I waited for suggestions on what to do but now, I would say, do you and be focused. How do you manage people’s expectations of who you are with who you really are? What drives your desire for success? Arese: What drives me fundamentally is my child. I want to be successful so I can provide her a better life. And so, I don’t keep friends or people who question my drive and desire for success. Nimi: It’s about purpose. That one thing you love and won’t mind doing for free. Gradually, you would make money out of it. Nibi: I’m driven by success itself and I try to hang around smart and driven women who motivate me to great heights. Final words to Motherland Moguls Arese: If you haven’t found your purpose, that should be your priority right now. You know those issues that make you argue on end? That’s probably your passion. Start thinking of a way to make it work. Your awesome, smart, and lucrative idea isn’t going to achieve itself if you don’t start doing something about how you’d make it happen. Nimi: There is so much abuse of everything these days. So look after yourself, exercise and diet properly. Give back. Have social empathy —think of that one thing you can do to change lives. Nibi: Your health is very important. If you’re not healthy, you can’t be talking of success in business or career. You can’t afford to be ill when there is money to be made. Taking a whole lot on yourself can make you flounder out somewhere along the way.
You need workplace inspections
Last week, Ada noticed the office photocopier wasn’t working rightly. She thought it was negligible but didn’t say anything to anyone. The office has never had a workplace inspection plan. Yesterday, when Kate started to use the machine, she got electrocuted. Thankfully, Biola saw her and immediately switched off the equipment. Kate did not die. However, she sustained injuries. Now, that was very close! Who wants to waste business funds on scenarios that could have been avoided? These things happen! A lot of potential hazards can be stopped from growing into accidents through workplace inspections. Most times, we take happenings in the workplace for granted. Other times, we create tasks for ourselves and employees wrongly. Regular inspections can expose existing and potential danger. Hazards like a sharp nail, a blown fuse, faulty equipment, poor workstation design, uneven floors have a high potential to cause injuries and illnesses. Someone might be thinking “This is not for me”. Hold that thought. Are some more prone to injuries than others? Anyone can get injured on any type of job. People faint, fires start, people trip and fall, machines malfunction in various businesses. To really get things right, you would need a Safety Professional to help you with safety inspections. However, on your own you can begin to assess the work process (Are there repetitive tasks? Is the task properly designed? Do staff have sufficient break time?), the environment (What is the noise level? Is the workplace too hot or too cold?), the equipment (Does it malfunction? Is it appropriate for the particular task?). Workplace inspections could be done daily, weekly or monthly depending on the scale and nature of business. Workplace inspections are important to start-ups because they help you: Identify existing and potential hazards (danger) Recommend corrective actions Interact with employees and know their concerns as they perform their daily tasks Monitor existing corrective actions So, what have you observed at work that could lead to harm? Do something about it!
4 lessons Tiwa Savage taught us on comebacks
It now seems so long ago. Sometime in April, we woke up to a rather unexpected hot-button topic —the messy detail of troubles in Tiwa Savage’s marriage. There were mind-blowing accusations on social media by her estranged husband. A tell-all video from Tiwa was to follow the next day. We already knew the 36-year-old Nigerian pop diva could make any song sound heavenly. But for someone who seemed well put together, we didn’t exactly see this coming. In case you’re one of the handful who hasn’t realized yet, Tiwa has got her groove back and she’s clearly on her grind! I have gleaned from her setback and triumph, 4 hard-hitting truths. They are guaranteed to stick with you for a long time. Challenges have a way cooler purpose than you ever thought. This is probably relative but this attitude is the most important you can develop in life, business or marriage. Seriously, challenges can sneak up on you and make you feel like the worst person alive. The idea is to realize that though it might take a lot of courage to look pain in the eye, it’s best to trust that it is a learning opportunity. If you’ve never had to crack some tough nut, have you really lived? I don’t think so. Know when you’ve had enough… and start talking like Tiwa. Like the message in the ‘If I Start To Talk’ song, off her RED album, maybe it’s time you realized you’ve had enough and started talking. You’ve probably been silent for too long. You don’t have to talk to anyone but an extra set of ears can be very useful. You probably think no one would appreciate, understand or help your plight (I find that pretty rare), but it can be a lifesaver to have someone know your story. Dust yourself off Tiwa’s got some interesting deals and endorsements going on, right now. The most recent and coolest, of course, is her being signed to Jay Z-owned Roc Nation! That’s some great trick for moving on —deliberately re-enact your own story. It makes for good business and helps you avoid having to obsessively dwell on something you cannot help. You can always decide the turning point in your own narrative. It is that moment when everything changes or catalyzes. Play the stingy one if you must Maybe you’ve been doling out cash to that lazy business partner, spouse, friend, family member or people whose link to you, you can’t fathom. No sweat girl, the giver tag to your name is fine. But the broke, unappreciated and unhappy tag is not so fine. If you find yourself in a position to offer help, by all means, do but it should really be worth it.
Walking away from pre-conceived notions
“You can take the boy out of the ghetto, but you can’t take the ghetto out of the boy”. That statement drives me mad and I get pleasure from proving it wrong. Why? Generalizations are not cool. I am from the Bini speaking part of Edo State, and if you’re Nigerian, you must have heard the popular saying; “Bini girls are loud, lousy, crazy, witches. They like going abroad to become commercial sex workers.” But you see, it’s not just common among Bini girls. There are pre-conceived notions associated with almost every ethnic group in Nigeria. “Ibo girls are money-hungry.” “Calabar girls are nymphos.” “Yoruba girls will do anything to keep a man”, so on and so forth. It’s even more annoying when educated people say these things. Let’s be real, this happens in Nigeria and I guess, other African countries too. I decided from an early age not to be defined by my ethnicity. Over the years, I have owned this resolve. Indie Arie’s “I am not my hair“ is my go-to song for kicking against convention and pre-concieved notions. I speak out against generalizations, whether in gender, colour, tribe, political or religious affiliations. I am not generic. I am specific, unique, and me! Unfortunately, some of us have allowed ourselves —and subsequently our families and businesses become products of these notions. Here’s a true confession: I secretly take pride in being an Aries. And the “Aries do not finish any project they start” statement is one of the biggest lies I ever heard. This belief shaped my life badly and for a long time, till I took control. I am tempted to just say “ walk baby, walk!” but it is not that simple. Here are my top suggestions to walking away from stereotypes. Define yourself Do not beat around the bush on this. I’ll be first to admit that I didn’t do this early on in life, and I wish I had. Taking self surveys and personality tests help to get a definitive self picture. A temperament analysis and if you are into it, your Zodiac sign can also help you get a clear picture. Filter In Nigeria, the statement “dem say, dem say” is used to define rumours. The prevalent view of your environment may not be normal at all. Don’t let it be. Filter what you hear and perceive. I’m not suggesting that you become oblivious. See, it’s important that you are aware of the workings of your area. Let go of dead-weights Please! This should be numero uno. Don’t go about dragging baggage and ideas that are probably as dead as the people who invented them . “Dreadlocks are evil” or “Girls should be quiet”. Ummm… no! Shed them faster than slimming teas shed fat. Re-brand As a follow-up to the previous tip, re-branding is simply psychological (let’s not talk about changing your wardrobe now). My mom calls it changing your OT (orientation). It is basically about changing your thinking process. I re-cultivated my mind on so many issues that were a part of my environment. Two major ways I did this were through books and the Bible. I read a lot about self-empowerment and growth and try to put what I read to practice. Positive re-enforcement You are so much more. Keep telling yourself that. I use sticky notes to write motivations to myself on my mirror. This way, I just can’t miss them. It’s scary thinking of how many people have followed uninformed predictions. Know that you can defy them. I don’t care what anyone says about Bini girls, that’s not me. I choose not to follow that notion and I do everything contrary to it. This is it, ladies, it doesn’t matter what people choose to believe about you, smile. Of course, we both know they know nada! So, walk away from generalizations and that “area” reputation. That’s clearly not you.
4 things to do in your 20s
The defining decade. That is what Meg Jay calls it. The ages between twenty and thirty are crucial in a woman’s life. It gets confusing, and it never gets better. You make mistakes and realize who you do not want to be. It is also the age that you are supposed to build a career or business, grow it to success. Don’t forget family as well. Your biological clock starts ticking, and children start getting cuter. Your social circle changes and you go from young adult to a working mother and wife. All in the same number of years it took you to properly learn and write English. Well, there are some pointers that Meg Jay gives in her TED talk, “Why 30 is not the new 20”. The same were replicated in her book “The Defining Decade”, but I do not want to be a spoiler (unlike some GoT fans). Here, however, is a tease of what I picked up. Always invest in who you want to be It does not matter whether you recently graduated and are jobless, or whether you have this amazing opportunity to do what you love. Always keep growing and maturing into the general direction that you want to end up in. That means that you do not have to take that boring unpaid internship that does not really interest you. Keep collecting your identity capital. That way, when you are asked who you are, you can state what exactly influenced you to be yourself. There’s no need being a Scandal fan if you cannot really live it. What’s the fun in that? We’ve shared some more ideas were given in an earlier article. So, really, you have no one to blame but you. Those that are farthest from your reach are the most helpful Most people think we are who we spend time with. That may be true when it comes to shaping your character, but it’s not entirely true for career and business. The weakest ties can come in handy. Your cousin’s friend’s wife may just be the ideal person to get you that dream job. And no, it is not cheating the system if you are qualified for the job. It is called networking. And really, it’s no time to play niceties with your career. Be ruthless in getting those connections going. Extremely nice girls never get the corner office. You have to get your hands dirty (the good kind, though). Own your lifestyle So many people change who they are to fit into what society expects of them. Once you know who you are, do not cram yourself into someone’s box or hide your light. I’m sure we’ve all seen that meme of an orange piece fitting into a garlic bulb. The strongest words are expressed in the simplest of pictures. Once you get that job, express yourself. If you are a creative person, go ahead and do you, darling. Be that leader that you are in your church. If you are a night owl, take up night shifts. Customize your life to your own needs. Truth is, if you don’t, no one will care enough to do it for you. Never ever compare your life to anyone’s Not only is this insulting to God, it is also a lie. Especially on social media. People will only show you an amplified version of the best in their life. You don’t get to know if they are happy or not. Just keep at your gift, work on it, keep your head down and keep going, you know, like a shark. Your actions will speak for you. The whole point of this is, in your 20s, you get to make changes and set habits that may be hard to break. Use them well. You never know when winter would come.
“You create your own luck by working hard”: Lessons from international fragrance and body care brand, Malée
If you’re part of the SLA community, it’s likely that you have big dreams just like Zeze. Enormous dreams. Huge ones. The “I want to be Africa’s answer to L’Oreal” kinda dreams. That was Zeze’s dream for her healthy luxury fragrance and body care brand Malée, and over the last few years she has taken major steps to pursue that vision. Go girl. But how do you get to that point? How do you give yourself the right tips and stretch yourself? We know, it sounds quite overwhelming right? That’s why Zeze came to #SheHiveLondon to break to down for us, and lucky for you —we’ve got some of the best snippets from her talk. (By the way, nothing beats hearing all the gist for yourself in person —so try and make it to a #SheHive event near you, we’re in Lagos this October, so don’t dull yourself and get your ticket now). First of all, Zeze wouldn’t take no for an answer Even when pros like her college marketing professor told her that there was no real opportunity for a brand like Malée, it didn’t stop her. She was relentless from day 1, travelling across South Africa to find hotels that she could partner with to stock her brand, and giving them products on consignment. Zeze took a step of faith and learned the ropes as she went along, looking for every opportunity to get her high-end, value for money product into the hands of her customers. She also went to major trade shows in the beauty and fragrance industry, such as Top Drawer in order to meet potential retailers who could stock Malée in their stores. Looking back, Zeze knows that no experience goes to waste From working in the stockroom of Faith Shoes, she learned the ropes of retail and running the store. She reminded us to “count everything you know today as something that will prepare you for tomorrow”. We create luck by working hard, and within a few years her hard work began to pay off. Malée was featured on CNN in 2011, giving it some major exposure. But that was just the beginning. By 2011 Malée had won two awards, and by 2012 it was featured in one of the world-leading trend forecasting websites Trend Bible, confirming that Malée would be the next big thing. But building a successful business doesn’t come without its challenges In the same year, Zeze launched Malée’s first physical store and manufacturing facility to help other small businesses create new products. Shortly afterwards, she had to rethink her business model, and make some major changes. That included closing the retail store and manufacturing facility, which was difficult, but it was the right thing to do for Malée. It be like that sometimes; things change. Accepting that you don’t know it all is part of being a successful business woman, and it keeps you humble. Shortly afterwards, Zeze invited four of the smartest people she knew to South Africa to give her what felt like her own personal Business School crash course. Ladies, this point is key —build on your strengths but also make sure you’ve filled major skills gaps, there’s nothing wrong with needing a bit of help. A true mogul never stays down for long After two years of hustling hard to bring Malée into the UK, it will now be stocked at some of the largest, most influential retailers: Harvey Nichols and Fenwick. A good hustle isn’t enough to get your products in stores though, you also need a unique product, and for Malée, their high-quality, healthy, authentic African-inspired range is what made all the difference. Get to know desperation Sounds crazy right? Get to know desperation, so that you can ignore it. Too many times we let desperation drive us to making the wrong choices. Being able to tell when desperation is driving you instead of passion and common sense will save you time, money, and maybe some tears too. Stay inspired and completely focused on your goal: that is what will sustain you when things get really tough. We couldn’t leave this post without talking about the CA$H Capital is one of the major things on any entrepreneur’s mind, after all there’s a lot we can do with money. We all dream of getting that magical cheque that will sort everything out, but Zeze suggests it’s best to start with what you have now. Save all that you can, be smart with your money and even if you can only make one product, one is enough to sell and test whether people actually want to buy your stuff. One sale might just lead to someone pre-ordering a large quantity, but you never know unless you try. It’s called bootstrapping my friend, and most times, having limited resources actually helps us to make better choices.
Starting a Business: The Very First Step
Ready to be an entrepreneur but confused about where to start? Do you want to wake up every day doing something you love? Are you ready to be your own boss? Call the shots? If you answered yes to any of those questions, then you just might be ready to be an entrepreneur. But wait…do you know the first step in starting your own business? Before you run out and buy a $5,000 domain name, read this free guide to get you started down the path to financial freedom and personal fulfilment. This free guide walks you through the very first step in starting your own business: coming up with an awesome idea that sells. In this guide, you will find: Soul searching questions to help you pin down a business idea that is the right fit for you The main criteria used to judge a good business idea Stories and advice from women just like yourself Business ideas you can start today The secret ingredient that all great ideas have in common No one ever said starting a business was going to be easy, but it can be extremely rewarding. Make sure you start off on the right foot by downloading this free guide today. It walks you through the first step every entrepreneur needs to know before embarking on their exciting journey! Don’t delay! Get your copy today. So how do you download this free guide? Easy – just fill out the form below to join our community and get access to this guide and AWESOME weekly content. [ninja_form id=21]
Pricing as a start-up: Where do you begin?
You finally registered that business or online store, and already considering setting up packaging. Or maybe your website is up and running and you’re ready to pull out all stops to get your marketing underway. But there’s just one thing missing, how much should your products or services cost? Pricing isn’t easy; there are several factors to consider. You don’t want to seem too expensive and therefore alienate your target market. But you also don’t want to price it so low that it connotes less quality or cheapness. So what’s a girl to do? We all know that end at the end of the day, you’d want to cover your production costs and still make a profit. Because we all know those red bottoms won’t buy themselves. However, pricing has to be based on the value transferred to customers for using your product or service. Consider the cost of production and make comparisons between your prices and that of competitors. A general rule of thumb is to use the 10% rule by using the customer’s derived value and adding 10% to it. Got it? Good. Let’s explore some more. Know your customers/clients The better you understand your customers’ needs, the more accurate your pricing will be. Looking to your competitors for a pricing comparison should be based on the assumption that their pricing is ideal. Your competitors may be over or even under charging. So it’s still important to do a personal cost analysis and figure out the pricing that works best for you. Is your pricing above or below theirs? Does location, staff, size of the company, quantity, and quality of the products come into play? These are all worthwhile questions you should ask when looking to your for answers. “Profit is not something to add on in the end, it’s something to plan for in the beginning” – Megan Auman Price sensitivity It is important to note that clients and customers will only pay more if they have the assurance of value. So don’t be scared to test out several different prices at the beginning. It’s the same when you walk into a boutique, see a dress and instantly know it would be far cheaper at a regular clothing store. But because it’s an exotic brand, you believe it is of better quality and therefore, worth the high price. This is where price sensitivity comes into play. Price sensitivity is the degree to which the price of a dress in this analogy, affects the customers’ willingness to buy it. I like to call it the fine line between “too good to be true” and “dirt cheap” and therefore a bargain. You do this by offering a different price, typically with a 5% difference, to individual customers for the same service or product. The general idea is that if you aren’t getting pushback from at least 20% of your customers, then you’re on the right track. Also, it is important to note that there is less price sensitivity when the product is unique and hard to find. So make sure to distinguish yourself from competitors in a big way. The price would be worth it if the boutique is making just one dress per size. The exclusivity is almost like getting a custom-made dress. “The reason it seems as though price is all your customers care about, is because you haven’t given them anything else to care about”- Seth Godin Smaller versus bigger Giving customers a choice between several tiers in pricing helps establish how well your products/services are priced. Have you ever come across the low, middle, and high price offerings? This is called ‘Goldilocks Pricing’. With this, you get to choose between the inexpensive but not ideal and the expensive but full package. You then end up with the pricing that is just the right fit, like your very own Cinderella shoe. It typically has just enough features to get you started and is often the bestseller. More often than not, it’s a few steps away from that ‘premium’ package which you can upgrade to anytime. For instance, if you sell an 80-gram tub of shea butter for R60, then a 160-gram tub would cost 10% less than buying two 80-gram tubs. Chances are, the customer will go for the bigger tub which means more money for you, provided the production cost is not higher. Similarly, a “buy 3 products and get the cheapest one free” sale in a specific high-end product range/ service market will ensure that you still get your money’s worth. Make sure that you always capitalise on these opportunities by offering any extra features that come with the package. For example, 10% to upgrade to the premium package from a 7-day free trial. In summary, if your product or service is amazing, of standard quality and worth the price, customers will come flocking. Good luck!