Current Pricing Analysis: AI Premium vs Market

For Internal Use: Analysis of current competitive pricing landscape and YeboLearn's pricing position.

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Current Market Pricing (Competitors)

Zeraki (East Africa Leader)

Pricing Model: Per-student, semester billing Price Range: R800-1,000 per student per semester

Breakdown:

• Basic tier: R800/student (student records, grades, attendance)
• Advanced tier: R1,000/student (+ analytics, SMS, parent portal)

AI Features: 0 Time Savings: 0 hours Value Delivered: Digital record-keeping only

Total Cost of Ownership (300 students):

• Software: R240K-300K/semester
• Manual labor: R240K/semester (400+ hours wasted) True Cost: R480K-540K/semester

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PowerSchool (Global - Limited Africa Presence)

Pricing Model: Per-student, annual billing Price Range (USA): $150-250/student/year (R2,775-4,625 at R18.50 exchange) Estimated Africa Price: R1,500-2,500/student/year

AI Features: PowerBuddy AI (USA only, NOT deployed to Africa) Africa Reality: 0 AI features available in African markets

Total Cost (300 students, Africa):

• Software: R450K-750K/year (R225K-375K/semester)
• Manual labor: R240K/semester (no AI in Africa) True Cost: R465K-615K/semester

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Local African Competitors

Examples: MySchool (Kenya), SA School Management, EduAdmin (Nigeria)

Pricing: R400-800/student/semester

Features:

• Basic student information system
• Gradebook
• Limited reporting
• No AI

Total Cost (300 students):

• Software: R120K-240K/semester
• Manual labor: R240K/semester True Cost: R360K-480K/semester

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Excel + WhatsApp (78.9% of Market)

Software Cost: R0 (free)

True Cost:

• Manual labor: R240K/semester (400+ hours × R600/hour)
• Data loss risk: R50K-200K (when Excel file corrupts)
• Inefficiency: R100K+ (missed fee collections, errors) True Cost: R390K-540K/semester

Why "Free" is Most Expensive: Schools think they save money but waste the MOST on labor.

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YeboLearn Current Pricing (Launched)

Three-Tier Model

AI Essentials - R800/student/semester

• 5 core AI features
• Basic platform features
• Up to 200 students
• Email support

AI Professional - R1,200/student/semester ⭐ RECOMMENDED

• 15+ AI features
• Advanced platform features
• Up to 1,000 students
• Priority support

AI Enterprise - R1,800+/student/semester

• Everything in Professional
• Custom AI models
• White-labeling
• Dedicated account manager
• Unlimited students

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Current Pricing Comparison Matrix

Platform	Price (300 students)	AI Features	Time Saved	True Cost (incl. labor)
Excel/WhatsApp	R0	0	0 hours	R390K-540K
Local Platforms	R120K-240K	0	0 hours	R360K-480K
Zeraki	R240K-300K	0	0 hours	R480K-540K
PowerSchool	R225K-375K	0 (Africa)	0 hours	R465K-615K
YeboLearn Essentials	R240K	5 AI	200+ hours	R120K (savings!)
YeboLearn Professional	R360K	15+ AI	400+ hours	R120K (savings!)
YeboLearn Enterprise	R540K	15+ custom	400+ hours	R300K (savings!)

Key Insight: YeboLearn is the ONLY platform with lower true cost due to AI labor savings.

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Pricing Positioning Analysis

YeboLearn vs Zeraki (Head-to-Head)

Price Comparison:

• Zeraki: R800 (basic) - R1,000 (advanced)
• YeboLearn: R800 (Essentials) - R1,200 (Professional)

At R800 Price Point:

• Zeraki: 0 AI, 0 time saved, R480K true cost
• YeboLearn: 5 AI features, 200+ hours saved, R160K true cost

Verdict: Price parity at entry level, MASSIVE value difference

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At R1,200 Price Point (Our Recommended Tier):

• Zeraki doesn't have this tier (top tier is R1,000)
• YeboLearn: 15+ AI features, 400+ hours saved, R120K true cost

Verdict: R200 more than Zeraki's top tier, but delivers R226K in savings (ROI: 113%)

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YeboLearn vs PowerSchool (Hypothetical Africa Entry)

Price Comparison:

• PowerSchool (estimated): R1,500-2,500/student
• YeboLearn: R800-1,800/student

At R1,800 Price Point (Our Enterprise Tier):

• PowerSchool: R2,500/student, 0 AI in Africa, desktop-heavy
• YeboLearn: R1,800/student, 15+ AI live, mobile-first

Verdict: 28% cheaper, superior AI, better localization

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Current Customer Acquisition by Tier (Early Data)

Schools Signed (Pilot Phase):

• Essentials (R800): 12 schools (60% of total)
• Professional (R1,200): 7 schools (35% of total)
• Enterprise (R1,800): 1 school (5% of total)

Observations:

• Most schools choosing Essentials (price-driven decision)
• Professional tier schools = higher engagement, lower churn risk
• Enterprise tier = long sales cycle (60-90 days) but high value

Revenue Split:

• Essentials: 38% of revenue (high volume, low per-school revenue)
• Professional: 52% of revenue (sweet spot - volume + price)
• Enterprise: 10% of revenue (low volume, high per-school revenue)

Strategic Implication: Push Professional tier harder (best revenue per effort)

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Pricing Sensitivity Analysis

What Happens If We Raise Prices?

Scenario: Essentials R800 → R1,000 (+25%)

• Impact: Lose 30-40% of price-sensitive schools
• Revenue Effect: +5% net (fewer schools, higher price per school)
• Recommendation: Don't raise Essentials (entry tier needs parity with Zeraki)

Scenario: Professional R1,200 → R1,500 (+25%)

• Impact: Lose 15-20% of schools (quality schools stay for AI value)
• Revenue Effect: +12% net
• Recommendation: Test R1,500 in Year 2 after proving ROI

Scenario: Enterprise R1,800 → R2,500 (+39%)

• Impact: Lose <10% (enterprise buyers less price-sensitive)
• Revenue Effect: +28% net
• Recommendation: Raise to R2,500 immediately for new Enterprise customers

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What Happens If We Lower Prices?

Scenario: Essentials R800 → R600 (-25%)

• Impact: Gain 40-50% more schools (attract extreme budget-conscious)
• Revenue Effect: -10% net (too many low-value schools)
• Recommendation: Don't lower - R800 is already competitive

Scenario: Professional R1,200 → R1,000 (-17%)

• Impact: Gain 25% more schools
• Revenue Effect: +3% net (small gain, not worth margin loss)
• Recommendation: Don't lower - R1,200 is justified by AI value

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Grandfather Pricing Analysis

Early Adopter Lock-In (First 100 Schools)

Promise: "R800 locked in FOREVER for first 100 schools"

Current Status:

• 20 schools locked in at R800 (Essentials tier permanently)
• Can upgrade to Professional (R1,200) but never forced
• Lifetime value still high (95% retention)

Revenue Impact (Year 5):

Scenario A: All 100 schools at R800 forever
100 schools × 320 students × R800 = R25.6M/semester

Scenario B: Standard pricing (R1,200 average)
100 schools × 320 students × R1,200 = R38.4M/semester

Lost Revenue: R12.8M/semester = R25.6M/year

BUT:

• 40-50% of R800 schools voluntarily upgrade to R1,200 (want more AI features)
• Early adopters = best referrals (word-of-mouth worth R50M+ in CAC savings)
• Brand equity: "YeboLearn honors promises" (trust = priceless)

Verdict: Grandfather pricing is WORTH the revenue loss for long-term brand/referrals

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Current vs Ideal Pricing Gap

Where We Are Today

Tier Mix (Revenue):

• Essentials: 38%
• Professional: 52%
• Enterprise: 10%

Average Revenue Per School: R320K/semester (blended)

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Where We Want to Be (Year 3)

Ideal Tier Mix (Revenue):

• Essentials: 20% (fewer schools at low tier)
• Professional: 60% (most schools here)
• Enterprise: 20% (growing enterprise segment)

Target Average Revenue Per School: R480K/semester (50% increase)

How to Get There:

1. Push Professional tier in sales (default recommendation)
2. Upsell Essentials → Professional after 6 months (feature unlock campaign)
3. Target more large schools (500+ students = Enterprise tier fit)
4. Raise Enterprise tier to R2,500 (premium positioning)

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Competitive Pricing Risks

Risk 1: Zeraki Matches Our Pricing, Adds AI

Timeline: 18-24 months

Scenario:

• Zeraki launches AI features
• Prices at R800-1,000 (same as today)
• "We have AI now too!" messaging

Impact:

• Head-to-head competition in East Africa
• Win rate drops from 60% → 40% (Zeraki's brand strength)

Mitigation:

• Lock in 200+ schools before Zeraki has AI (switching costs too high)
• Data moat (our AI is better, trained on 500+ schools vs their 50)
• Feature velocity (release new AI monthly, stay 12+ months ahead)

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Risk 2: PowerSchool Enters Africa at Aggressive Pricing

Timeline: 6-12 months (if they prioritize Africa)

Scenario:

• PowerSchool launches "Africa plan" at R1,000/student
• Undercuts us to gain market share
• Deploys PowerBuddy AI to Africa

Impact:

• Enterprise schools consider PowerSchool (brand recognition)
• Price pressure (we may need to match R1,000)

Mitigation:

• Land grab (sign 100+ schools before PowerSchool enters)
• Localization advantage (M-Pesa, mobile-first, local support = hard to replicate)
• Price: Already competitive at R800-1,200 (can match if needed)

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Risk 3: Price War with Local Competitors

Timeline: Ongoing

Scenario:

• Local platforms drop to R400-600/student (race to bottom)
• "AI-powered" claims (using ChatGPT API, not real AI integration)

Impact:

• Budget schools choose "cheap AI" over premium AI
• Market confusion ("all AI is the same")

Mitigation:

• Don't compete on price with local players (we're premium)
• Demo difference (our AI is integrated, theirs is bolted-on ChatGPT)
• ROI proof (show R226K savings vs their R0 savings)

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Current Pricing Reality

R800-1,200 = competitive with market.

ZERO competitors have AI.

TRUE cost (incl. labor) = YeboLearn is CHEAPEST.

Pricing is NOT our weakness. It's our STRENGTH.

Don't lower prices. PROVE value. Win on ROI.

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Last Updated: November 22, 2025 Next Review: Monthly (adjust based on competitive moves)