BBull on Nostr: **Expanded Pricing Strategy for Boaz Trading PLC's Beauty Salons** --- ### **Tiered ...

**Expanded Pricing Strategy for Boaz Trading PLC's Beauty Salons**

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### **Tiered Pricing Model**
Boaz’s tiered strategy balances **accessibility** and **premium positioning**, aligning with Ethiopia’s income diversity and the salon’s mission to democratize luxury.

#### **1. Basic Tier (300–800 ETB)**
- **Target**: Urban women seeking quality at approachable prices.
- **Services & Pricing**:
- **Haircuts**:
- *Standard Trim*: 300 ETB (junior stylist).
- *Stylist Cut*: 500 ETB (senior stylist, includes blow-dry).
- *Texture-Specific*: 800 ETB (curly/coily hair specialists).
- **Basic Facials**: 500 ETB (cleansing + hydration with local ingredients like *besema* clay).
- **Manicures/Pedicures**: 400 ETB (single-color polish) to 800 ETB (gel + nail art).
- **Rationale**:
- **Competitive Edge**: Priced 20–30% above budget salons but justified by free add-ons (e.g., herbal tea, scalp massages).
**Psychology**: Odd pricing (e.g., 790 ETB) to signal affordability.

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#### **2. Mid-Tier (1,000–5,000 ETB)**
- **Target**: Middle-class clients seeking occasional indulgence.
- **Services & Pricing**:
- **Advanced Skincare**: 2,500 ETB (LED therapy or chemical peels).
- **Hair Treatments**: 3,000 ETB (keratin smoothing for Ethiopian hair textures).
- **Spa Packages**: 5,000 ETB (3-hour “Sheba Relaxation”: massage, facial, coffee scrub).
- **Rationale**:
- **Upselling**: Basic-tier clients are nudged to mid-tier via bundled discounts (e.g., “Facial + Massage = 15% Off”).
- **Value Perception**: Highlight time savings (e.g., “Lunchtime Glow” 60-minute facial for 1,500 ETB).

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#### **3. Premium Tier (10,000–25,000 ETB)**
- **Target**: High-income clients, brides, expats, and diaspora visitors.
- **Services & Pricing**:
- **Bridal Packages**:
- *Timkat Bride*: 15,000 ETB (makeup, hair, 2 trial sessions).
- *Royal Package*: 25,000 ETB (full-day bridal party services + pre-wedding skincare).
- **VIP Memberships**: 10,000 ETB/month (unlimited basic services + 2 premium treatments).
- **Luxury Treatments**: 12,000 ETB (24K gold facial) or 18,000 ETB (diamond microdermabrasion).
- **Rationale**:
- **Value-Based Pricing**: Brides spend 10–15% of wedding budgets on beauty, justifying premium rates.
- **Exclusivity**: Limited slots for VIP services to maintain prestige.

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### **Competitive Pricing Analysis**
| **Service** | **Boaz** | **Local Salons** | **International Chains** |
|-----------------------|---------------|------------------|--------------------------|
| Basic Haircut | 300–800 ETB | 200–400 ETB | 1,500+ ETB |
| Bridal Makeup | 15,000 ETB | 8,000 ETB | 20,000+ ETB |
| Facial | 500–2,500 ETB | 300–1,500 ETB | 2,500–5,000 ETB |

**Key Insight**: Boaz bridges the gap between low-cost local salons and overpriced international chains, offering Ethiopian-inspired luxury at 40–60% lower rates than global brands.

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### **Strategic Pricing Tactics**
1. **Psychological Pricing**:
- **Charm Pricing**: 790 ETB instead of 800 ETB for manicures.
- **Anchor Pricing**: Display premium packages first to make mid-tier services seem affordable.

2. **Bundling**:
- “Coffee & Clay” package: 1,200 ETB for a coffee scrub + besema clay facial (15% savings).
- “Mother-Daughter Day”: 3,500 ETB for joint facials and massages.

3. **Dynamic Pricing**:
- **Off-Peak Discounts**: 20% off mid-tier services on weekdays.
- **Seasonal Surges**: +10% on bridal packages during December wedding season.

4. **Loyalty Programs**:
- **Points System**: 100 ETB = 1 point; 500 points = free mid-tier service.
- **Membership Tiers**: Silver (5,000 ETB/year), Gold (10,000 ETB/year), VIP (25,000 ETB/year).

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### **Financial Alignment**
- **Margin Structure**:
- **Basic Tier**: 40–50% margins (high volume, low cost of local ingredients).
- **Premium Tier**: 60–70% margins (low volume, high perceived value).
- **ROI Contribution**: Premium services to drive 50% of profits despite 20% of total sales.

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### **Challenges & Mitigation**
- **Price Sensitivity**: Offer “First Visit” discounts (e.g., 30% off basic services).
- **Cost Fluctuations**: Hedge against currency risks by sourcing 50% of products locally (e.g., shea butter from Oromia).

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**Conclusion**:
Boaz’s tiered pricing democratizes luxury while maximizing profitability. By anchoring affordability in basic services and leveraging high-margin premium packages, the strategy aligns with Ethiopia’s economic diversity, ensuring a 20% ROI within 3 years.