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Monday, August 12, 2013

The Marketplace......

Shhhhh...... Don't wake the boys. I have some peace and quiet now, here's my chance. Its been a while since I sat at this computer to put out a meaningful post. Not even sure if today's will turn out to be meaningful. I am so tired, I just feel like I am rambling. I think I am!

Maybe I should just type Wizkid on the title again and generate as many views as the last Wizkid post. That post about Wizkid's Porsche Panamera got me so many views it was unbelievable! Don't know what worked, the mention of Wizkid or the Porsche Panamera? People can like amebo gist shaa! I refuse to bow to pressure. Focus Sade, Focus........ An Entrepreneur's Journey. 

I took some pictures in the market a few weeks back when I was trying to put together my entry for a business competition. I never got around to submitting, but I'll share my thoughts here and hope it serves as meaningful and useful information.

The marketplace

How do we define the marketplace in simple terms? It is basically a place where buyers and sellers interact. Yes, Non? Share your own definition please.

In the past it was restricted to a physical location, but now alternative mediums (battled here a bit, between media and mediums, the latter sounded better) have emerged that are not restricted to a physical space. People conclude transactions without even meeting face to face.

I attempt to describe the three main elements of a marketplace below (bear in mind, I am no professor, at least not yet J)

Buyer - There's someone out there looking for a product or service that meets their specifications and matches their budget at a particular point in time. The price he/she is willing to pay today changes over time, based on access to information, resources and level of desperation for that product/service.

I get better bargains when I am not under pressure to buy an item or try a service. When I was much younger, my dad would make us comb almost the whole market and negotiate with most of the sellers the day before we come back to buy stuff for the house. His point was, we make better buying decisions that way. Sometimes I used to fear we would get beaten up by the traders, lol!

Seller - There's another person out there who has a product or service on offer and is looking for that person who is willing to pay the right price for it at a particular point in time. Again, this "right price" changes with time as determined by the market.

There was this plantain seller on my street one time who would hike her prices so bad no one would buy from her. Now here's the crazy bit, even after the plantain got all black and was about to go rotten, she would still demand the original price for the plantain o! How now?! People like her are outliers, exceptions to the "right price" rule.

Medium of transaction - This could be a physical store or space where products are displayed. It could also be a virtual space that a buyer can access via the internet or a mobile application that allows the buyer to make a decision whether to purchase or pass.

I have never met a couple of the clients I have done business with. We conclude via email, blackberry or phone and money is exchanged via online banking and their goods are couriered to the location. Shikena.

Here's my amateur picture of a physical marketplace with captions showing what could be going on in the minds of the participants.

Enjoy...... (or not *covers face)

My amateur attempt at picture editing, hehe

Entrepreneur Tips
  • As an entrepreneur, your success is determined by your ability to find that person(s) who is willing and able to pay the right price for your product or service at the right time. Before you develop any product or service, start with that person in mind.
  • Times have changed, you do not need a physical space to carry out transactions. If you have limited resources (we all do, anyway), think outside the box for creative ways to give your customers access to your product or service.
  • You might have more resources than others, maybe enough to get you a fancy physical location, do not ignore opportunities to create other access channels to your product or service.