The cost of cleaning my house twice a week is $110
This includes what I pay to the cleaner for labor and his transportation. He was using Bolt or Uber as I don't want him to use public transportation. I need him here promptly Monday and Thursday. This is a luxury service.
This includes what I pay to the cleaner for labor and his transportation. He was using Bolt or Uber as I don't want him to use public transportation. I need him here promptly Monday and Thursday. This is a luxury service.
I was driving out last week and saw that one of my neighbors with very expensive cars had a van parked in front of their home. It was for a luxury car detailing service. I regretted not taking a picture to get their contact details as I thought I would just Google to find out.
It turns out that they don't have a website and can't be located. There are other services in Accra listed but there was a reason this company came to our estate and it was word of mouth. Most luxury services scale that way and don't spend money on marketing.
My uncle has had the same grooming service twice a month for decades. They come to the house and do everything promptly. I always figured it was the best time to pitch things to him and I was right 😂
He felt good and relaxed. He was also in one place. Those guys have no website
He felt good and relaxed. He was also in one place. Those guys have no website
I have been chatting with a South African founder running a venture called Prim-U since last year and concluded that her home service for ladies haircare was a premium luxury service and should be positioned as such. She found out her biggest clients were men gifting the service!
Those trying to do artisan and handymen marketplaces in Africa have all been doing it wrong. It is a very profitable premium service and it is NOT for everyone. I repeat again, it is NOT for everyone.
The supply and demand issues can be solved very easily by knowing this.
The supply and demand issues can be solved very easily by knowing this.
At Mobile World Congress in Barcelona 10 years ago, a gorgeous lady walked up to me at a VIP cocktail event and I thought that it was my lucky day. She was very well dressed and we had great conversation. Then she slipped me a card for a high-class escort service. I was stunned.
I went to the site later with my wife and we saw that these people charged like 2000 Euros a night 🤯
Very well differentiated and their sales effort unparalleled. No doubt that it was a profitable business for discerning clientele. This is in the “oldest profession.”
Very well differentiated and their sales effort unparalleled. No doubt that it was a profitable business for discerning clientele. This is in the “oldest profession.”
In all the examples I have given above, two things stand out. They know their customer and the services aren't cheap. It is about value not cost.
I wrote an article long ago about the term “Proximate Value Pricing”
Quality indeed has its price.
guardian.ng
I wrote an article long ago about the term “Proximate Value Pricing”
Quality indeed has its price.
guardian.ng
Hal Varian once famously said that if you want to know what poor people will use tomorrow, look at what rich people use today.
I keep using the example of @nubank for a premium service that has scaled because they provided private banking type of quality service to the masses.
I keep using the example of @nubank for a premium service that has scaled because they provided private banking type of quality service to the masses.
It doesn't mean Nubank is cheap. They just decided to do quality at scale. It was hard and involved hiring a lot of people to provide support but they have scaled and are serving millions.
I believe it is possible in all sectors and high margin premium businesses are possible.
I believe it is possible in all sectors and high margin premium businesses are possible.
The mistake we keep making in Africa is not recognizing when a product is still at luxury stage and treating it as such. Customers want to have quality at scale but delivered cheaply. There are tradeoffs you must make and pains that must come. You don't have to serve everyone.
Maybe the Uber of Handymen also means the Handyman using an Uber to come to you. If we start treating these services as premium services delivered by professionals, we can possibly have quality services for all tomorrow.
Forcing it now just won't work. It isn't about scheduling.
Forcing it now just won't work. It isn't about scheduling.
Profitable premium services already exist around Africa with minimal digital footprint. We can't “tech” everything to make it better. We just have to take pains to understand what markets need.
By the way, I said my cleaner was using Uber and Bolt in past tense as I have now assigned him a driver. They both know their jobs on Monday and Thursday. It allows me to remain functional. It is an expense for my mental health and ability to work from home. My cleaner has no app
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