Price Smart and Win in Africa
At Tekedia Institute, we believe that Pricing Innovation is strategic in Africa, because of depreciating disposable income positions in families. As you innovate on tech and business models, remember PRICING. Business empires have been built because someone came up with a great pricing playbook. Get that African sweet spot and price within it: "$4-$8 per day segment" for B2C
As you plan smartly, also do all to ensure that you understand the business model you are investing in. This type of experience as noted should not happen: "The Airbnb model has helped create new “opportunity” in the rental car business. Entrepreneurs are purchasing vehicles and renting them out on car-sharing services such as Turo and Getaround, The Wall Street Journal reports. But the business is not without its challenges and potential pitfalls — a list that can include stolen cars, totaled cars and unforeseen events. At least one such car was involved in a shooting, The Journal writes. On top of mishaps, owners have overhead costs for financing and maintenance, along with pick-up and drop-off services. One owner said he threw in the towel after losing tens of thousands of dollars."