Stop Competing on Price: How to Charge What You're Worth
There's always someone cheaper — and racing them to the bottom is a race you win by going broke. Here's how Kenyan service businesses escape the cheapest-quote trap.
"Nipunguzie bei" is practically a national anthem — and many owners respond by quoting lower than the last guy until the job barely covers costs. But look at the businesses around you that thrive for years: they are almost never the cheapest. They've simply given customers a reason other than price to choose them.
The cheapest-quote trap
Competing on price attracts the worst customers — the ones with no loyalty, endless demands, and a cheaper option always one WhatsApp message away. Worse, thin margins leave nothing to reinvest in quality, marketing or staff, which forces you to stay cheap. It's a trap that tightens the longer you're in it.
What customers actually pay more for
- Certainty — a written quote, a firm timeline, and a business that answers its phone
- Proof — photos of past work, reviews, real clients they can verify
- Speed and convenience — being reachable, delivering on time, sorting problems without drama
- Specialisation — the "wedding tent specialist" charges more than the "tents for everything" guy
- Aftercare — a warranty, a follow-up call, someone accountable after the money changes hands
Practical moves that raise your price ceiling
Offer three packages instead of one price — most customers pick the middle, and the premium option makes it look reasonable. Quote in writing on a branded document; a professional PDF justifies a higher number than a figure typed into WhatsApp. Itemise what's included so "expensive" becomes "thorough". And when someone asks for a discount, trade instead of surrendering: a lower price for a smaller scope, upfront payment, or a referral.
Fire the bottom, feed the top
Each year, look at your customer list honestly: the bottom slice pays least, complains most, and crowds out better work. Politely raise prices there, and reinvest the freed time in the customers who value you. Revenue may dip for a month; profit and sanity rise for years.
Price is only a problem when you've given the customer nothing else to compare. Give them certainty, proof and care — then the cheaper guy is the risky option.
Antony Mungai
Founder, Steff Cloud — building websites, systems and automation for Kenyan businesses from Nakuru.