Konnected Minds Podcast – Episode Summary

Episode Title:
Price It Right or Lose: Why 90% of African Businesses Fail at Pricing Strategy

Host: Derrick Abaitey
Guests: Business Coach; Entrepreneur
Date: November 9, 2025

Episode Overview

This episode zeroes in on a critical, often-misunderstood pillar of business success in Africa: pricing strategy. Derrick Abaitey and his guests debunk the myths and fears surrounding pricing, drawing deeply on personal experience and practical examples. The aim is to empower ambitious entrepreneurs—especially younger Africans fresh from national service—to shed limiting beliefs, build confidence, and master the art of profitable, sustainable pricing in business.

Key Discussion Points & Insights

1. The Fear Behind Pricing Decisions (00:00 – 01:30)

• Afraid to Price Up: Many African entrepreneurs undervalue their offerings, fearing that raising prices will drive away customers.
  • Quote (Business Coach, 00:05):
    "People are afraid. They are afraid that once they increase their prices, they are going to lose customers. But you are not having enough customers anyway. You might as well just price right and then use the margins... to attract the kind of customers that you want."

2. Understanding Your Target Market (00:32 – 01:44)

• Misaligned Pricing = Failure: Pricing should be rooted in a clear understanding of your business model and your target audience—not just undercutting the competition.
• Business Coach’s Analogy:
  • Selling a Makola product to a Chasaku customer while pricing for neither.
  • Quote (Business Coach, 01:10):
    "You can't have middle to low income earners as your target market and then your pricing is all the way up."

3. Competitive vs. Low Pricing (01:44 – 03:15)

• Competitive ≠ Cheap: Many conflate low pricing with competitiveness; true competitiveness comes from offering value that matches and justifies the price.
• Value Addition Example: “Glam Inches” business uses premium pricing, justifying it through exclusive benefits (glam card, community, tutorials, personal attention).
  • Quote (Business Coach, 02:07):
    "Our prices may be higher, but they are competitive because we add a lot of value to the price."
  • Memorable Moment: Discussion of customers feeling “special” because of the glam card, community, and personalized support.

4. Practical Pricing Methods (03:15 – 04:53)

• Business Coach’s Method:
  • Start with vendor costs (Excel or similar)
  • Account for all expenses: shipping, packaging, overheads
  • Factor in the value of your own time (consider market salary equivalent)
  • Study competition, define desired profit margin
• Quote (Business Coach, 03:58):
  "Some people struggle with that, the profit they want to make. Sometimes I ask them to value their time—if you were working for a company, how much would they be paying you for a month?"
• Entrepreneur’s Method:
  • Emphasizes profit and independence from competition’s prices.
  • Works backwards from desired profit, not just costs.
  • Avoids becoming a “commodity” by differentiating and aiming for premium positioning.
  • Quote (Entrepreneur, 05:06):
    "If I look at competitors... I become like a commodity. But when I price at my own price, looking at my time, what I’ve put into it, the efforts, everything… then I do that."

5. The Profit and Impact Balance (04:53 – 06:53)

• Profit is Essential: Even for mission-driven businesses, lack of profit leads to frustration.
  • Quote (Entrepreneur, 04:57):
    "Impact without profit is frustration."
• Optimize for Profit: Set income goals, calculate expenses, price accordingly. Don’t let external price wars define your value.

6. Advice to Young African Entrepreneurs (06:53 – 09:35)

• Jobless Graduates Have Opportunity: With 100,000+ young Ghanaians finishing national service yearly, entrepreneurship is a viable path for many.
• Leverage Your Time (Business Coach, 07:29):
  • Use post-graduation time to learn, volunteer, network, and build personal brand.
  • Quote (Business Coach, 07:36):
    "So they have time. Use your time, get to know people, make yourself valuable... you have time. So right now, after national service, all you have is time. So just make sure you make the most out of that time."
• Set Goals, Seek Exposure (Entrepreneur, 08:51):
  • Self-assessment: define life goals
  • Get exposed to pros/cons of traditional employment vs. business
  • Recognize diverse business models beyond brick-and-mortar
  • Quote (Entrepreneur, 09:01):
    "Most people don't have goals and so they have little aspirations... Number one, you need to be exposed to different things—the pros of a job and the cons, the pros and cons of business."

Notable Quotes & Memorable Moments

• On Underselling:
  "You might as well just price right and use the margins you are making to attract the kind of customers you want."
  — Business Coach (00:11)

• On Value-Based Pricing:
  "You’re not just looking at the number, you’re offering value, added value to the price."
  — Business Coach (02:03)

• On Impact vs. Profit:
  "Impact without profit is frustration."
  — Entrepreneur (04:57)

• On Entrepreneurship Mindset:
  "I don’t look at other people’s things, otherwise I become a commodity. I want to be premium, I want to be a person of my own."
  — Entrepreneur (05:19)

• On Seizing Opportunity:
  "After national service, all you have is time. So just make sure you make the most out of that time."
  — Business Coach (07:52)

Key Timestamps

• 00:00 – 01:30: The core fear driving bad pricing (Business Coach, Interviewer)
• 01:45 – 03:15: Deep dive into competitive vs. low-value pricing (Business Coach)
• 03:18 – 04:53: Step-by-step: pricing methods revealed (Business Coach, Entrepreneur)
• 04:53 – 06:53: Balancing profit and impact; avoiding the commodity trap (Entrepreneur)
• 06:53 – 09:35: Advice for national service graduates on entrepreneurship, personal growth (Interviewer, Business Coach, Entrepreneur)

Final Takeaways

• Pricing is not about being the cheapest; it’s about sustainable value and a clear sense of your worth.
• Entrepreneurs must deeply understand their market, costs, and personal goals before setting prices.
• Young Africans—especially those fresh from university—should fearlessly explore entrepreneurship, leveraging time, learning, and networking.
• Without profit, even the most passionate mission collapses; pricing right is non-negotiable for business survival.

The right price invites the right customer, fuels growth, and ensures you don’t just survive, but thrive.