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  • 🚀 From Price-Taker to Price-Maker: How to Set Prices That Reflect Your Value and Drive Success

🚀 From Price-Taker to Price-Maker: How to Set Prices That Reflect Your Value and Drive Success

Let’s dive into how you can set the right prices for your products and services to reflect your true value and maximize your profits! 💰

Hi future Brand Giant,

You're not just setting prices - you're crafting the value story of YOUR brand. Working with SME entrepreneurs I noticed that many are facing the same challenges in finding the right pricing strategy and moving from survival mode to industry shaper.

The good news is, with the right framework, you can move from just sustaining your business - to fuelling your empire.

The Truth No One Tells You About Pricing

Think pricing is just about numbers? Think bigger! Your price tag is your first brand story and communicates a lot more than you think! It’s about setting expectations, creating value, and ensuring your business remains profitable. It's the difference between being seen as "just another business" and becoming THE name in your industry. Here’s what you need to know:

Your Price = Your Power Position

  • When you nail your pricing, you're not just covering costs - you're building an empire that investors fight to be part of

  • Your price isn't just a number - it's your declaration of value to the world. It defines how customers perceive you and how you position yourself.

  • This isn't about being cheap or expensive - it's about being intentionally positioned for massive growth

But first things first: 
As someone who's worked with many African SME entrepreneurs, I've seen firsthand how the right structures transform businesses.

After watching talented founders unable to scale their businesses and get rejected by programs and investors simply because of fixable business structure issues, I knew something had to change.

That when I developed our Scale and Lead Program.

Our 6-weekProgram helps you:

  • Engineer your brand for category dominance (not just market participation)

  • Build systems that turn your business into a scalable powerhouse

  • Join a brotherhood/sisterhood of future African market leaders

  • Get exclusive access to our asset-investment platform (Beta version)

P.S: You can already start engaging with fellow SME entrepreneurs TODAY by joining our WhatsApp Group.

What Pricing Means for Your Business

Pricing is about determining how much your customers will pay for your product or service. It’s a balancing act between your costs, customer expectations, and market competition. Here are the 3 main pricing strategies:

  1. Cost-Based Pricing: Calculate your production cost and add a profit margin. Straightforward, but may not reflect customer value.

  2. Value-Based Pricing: Focus on the value your product provides to customers. If it solves a problem or improves their life, you can charge more.

  3. Competitor-Based Pricing: Set your price based on what competitors are charging. However, just because others charge less doesn’t mean you have to. Highlight your unique benefits.

Real Talk: The Bread Story 🍞

Let's make this super practical. Imagine you're not just a baker (Small Business Mindset) - you're building the next big bread brand in Africa.

Calculation Example:

Fixed Costs (Monthly):

  • Rent: $200

  • Utilities: $100

  • Equipment Maintenance: $50

Variable Costs (Per Loaf):

  • Ingredients: $0.50

  • Packaging: $0.30

Production Volume: 500 loaves/month

Calculations:
Fixed Cost per Loaf: $200 + $100 + $50 ÷ 500 = $0.70
Total Cost per Loaf: $0.70 (Fixed) + $0.50 (Ingredients) + $0.30 (Packaging) = $1.50
Add Profit Margin (30%): $1.50 × 1.3 = $1.95
Selling Price: $2.00 (rounded)

Basic Baker: "My bread costs $1.50 to make, so I'll charge $2.00"

Here's how Brand Giants think:
“My artisanal bread brings premium quality to everyday tables. $3.50 reflects our brand promise and fuels our vision to become Africa's preferred bakery."

Your Action Steps This Week

  • Calculate Your Costs:
    Review your fixed and variable costs. Fixed costs are expenses that don’t change, while variable costs depend on production. Use our Unlock the power of your Numbers to guide you in this process.

  • Research Your Market:
    Study your competitors’ pricing and find out how they justify their prices. What makes your business unique? Learn from your Stop fighting for Customer Post 

  • Understand Customer Value:
    What do your customers value the most? Price, quality, speed, or sustainability? You can gather insights by talking to customers or conducting surveys.

  • Add a Profit Margin:
    Decide how much profit you want to make per unit (e.g., 20%). Multiply your total cost per unit by (1 + profit margin) to set the selling price.

  • Test and Adjust:
    Launch with an initial price, then monitor sales and gather customer feedback. Adjust if necessary to find the right price that drives profitability.

Remember: You're not just running a business - you're building Africa's next Brand Giant. Let's make it happen!

Cheers,

Sitan