Pricing Lessons From Markets to Corporate Retail. by gerome Kemp

Years ago, I was standing at market stalls in Cape Town, selling ladies swimwear and jewellery. Back then, I thought pricing was just about guessing what people would pay. I’d look at the crowd, throw out a number, and hope for the best. But I quickly learned that every rand mattered — from the cost of fabric to the taxi fare to get there.

At Lewis Stores and Edgars, I saw firsthand how big retailers approached pricing, promotions, and customer value. It was a different world — structured systems, compliance, and strategies designed to scale. Those lessons showed me that whether you’re hustling in a township market or running a national chain, pricing is never just about numbers. It’s about survival, respect, and knowing your worth.

Looking back, my journey across markets, retail floors, and now Consulting Cave adds up to nearly 30 years of experience. Every step taught me something about pricing, lessons I now share with fellow entrepreneurs.

Pricing is not just maths. It’s dignity. And for South African entrepreneurs, especially those of us rooted in the township hustle, it’s the difference between sinking and thriving.

Know Your Costs, Know Your Ground

At the markets, I realised that if I didn’t track every cent, I was already behind. Direct costs like materials and packaging, indirect costs like rent and marketing, and hidden costs like VAT or delivery fees, they all add up. A simple spreadsheet or BI tool can be your best friend. When you know your costs, you know your ground. That’s the foundation of sustainable pricing.

Define Your Value

People don’t just buy your product, they buy you. They buy your story, your consistency, your promise. Maybe it’s the quality of your service, maybe it’s the fact that you deliver on time when others don’t. That’s your value proposition. Price with confidence, because you’re not just selling goods, you’re selling trust.

Research the Market

In Mitchells Plain, I’d walk through spaza shops and check what others were charging. Online, I’d scroll Takealot or Gumtree. Benchmarking isn’t copying — it’s positioning. Are you the premium choice, the budget option, or the reliable middle ground? Decide, and own it.

Understand Your Customer

Your people matter. Some prefer bundles, others want payment plans. Township customers are smart — they know value when they see it. Listen to them. Align your pricing with their habits, and they’ll keep coming back.

Choose Your Strategy

There’s no one-size-fits-all. Sometimes you go cost-plus, sometimes value-based. Maybe you launch with penetration pricing to win market share, or premium pricing to signal quality. The key is to be intentional. Don’t let pricing happen to you — make it part of your strategy.

Factor in Taxes and Compliance

South Africa has its rules: VAT, UIF, provisional tax. Ignore them, and you’ll pay later. Build them into your pricing now, so you don’t undercharge and struggle later.

Review and Adjust

Markets shift. Costs rise. Value grows. Every quarter, revisit your pricing. Ask yourself: am I still covering costs? Am I still delivering value? Am I still aligned with my customers? Adjust boldly.

Final Word

From selling swimwear and jewellery at Cape Town markets, to learning retail systems at Lewis Stores and Edgars, to building Consulting Cave — my journey spans almost 30 years. And through it all, I’ve lived and learned, thrived and cried.

Those years taught me that pricing is not just about numbers. It’s about respect. Respect for your work, your customers, and your community.

When you price right, you show the world that township entrepreneurs can play on the same field as anyone else. And more than that — you prove that our stories, our hustle, and our value deserve to be recognised.