Every product decision eventually meets a money question. Will this feature bring in revenue? Does it cost more to run than it earns? Can customers afford it? Even NGOs ask whether a tool serves people well within its budget. Interviewers for product and analyst roles expect you to talk about these basics with confidence.
Four words to know
- Revenue. Money coming in from customers, such as fees, subscriptions or a share of each sale.
- Costs. Money going out: staff, servers, SMS charges, mobile money fees, marketing, agent commissions.
- Margin. What is left from each sale after the direct costs of that sale.
- Unit economics. The money story for one customer or one transaction. If one order loses money, more orders lose more money.
How products make money
Common models in Ghana include a small fee per transaction, a monthly subscription, a commission on sales made through the platform, advertising, or a free service paid for by a partner such as an NGO or government programme.
Pricing in cedis
Price is not just a number. It signals value and affects who can use the product. A few ideas help:
- Compare with what people pay today. If a trader pays a susu collector a day's savings each month, that tells you what saving is worth to her.