BBull on Nostr: **Expanded Pricing Strategy: Tiered Model** Boaz’s pricing strategy balances ...

**Expanded Pricing Strategy: Tiered Model**
Boaz’s pricing strategy balances **accessibility** and **premium positioning**, ensuring affordability for urban Ethiopians while capturing high-margin opportunities from expats and bridal clients. Below is a detailed breakdown:

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### **1. Basic Tier (300–800 ETB)**
**Objective**: Attract price-sensitive urban clients while maintaining premium quality.
**Services & Pricing**:
| **Service** | **Price (ETB)** | **Competitor Benchmark** | **Boaz’s Edge** |
|---------------------------|-----------------|--------------------------|---------------------------------|
| Express Haircut (wash + cut) | 300–500 | Local salons: 150–300 | Free herbal tea, scalp massage |
| Basic Manicure | 350 | Home stylists: 200 | Sanitized tools, organic polish |
| Quick Facial | 500 | Local spas: 300–400 | Besema clay mask included |

**Psychological Pricing Tactics**:
- **“99” Pricing**: 499 ETB for a “Lunchtime Glow” mini-facial.
- **Bundle Deals**: “Weekend Refresh” (haircut + manicure) for 699 ETB (10% discount).

**Target Audience**:
- Students, entry-level professionals (18–30 years).
- **Frequency**: 2–3 visits/month for maintenance.

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### **2. Premium Tier (1,000–25,000 ETB)**
**Objective**: Maximize margins from high-income locals, expats, and special occasions.

#### **Sub-Tiers**:
**A. Mid-Premium (1,000–5,000 ETB)**
- **Services**:
- *Koba Oil Hair Treatment*: 1,500 ETB (Ethiopian plant oil + keratin fusion).
- *Coffee Ceremony Body Scrub*: 2,000 ETB (exfoliation + 30-min massage).
- **Competitor Comparison**: International chains charge 3,000–5,000 ETB for similar services.

**B. Luxury (5,000–25,000 ETB)**
- **Bridal Packages**:
| **Package** | **Price (ETB)** | **Inclusions** |
|-----------------------|-----------------|----------------------------------------------------|
| *Essential Bride* | 10,000 | Makeup, traditional braids, henna, trial session. |
| *Luxury Bride* | 25,000 | Pre-wedding facials, VIP suite, bridal party discounts. |
- **VIP Memberships**: 15,000 ETB/year for priority bookings + 20% off all services.

**Target Audience**:
- Affluent urban women (35–45 years), expats, bridal parties.
- **Frequency**: 1–2 visits/month for high-income clients; one-time splurges for brides.

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### **3. Strategic Pricing Rationale**
#### **Cost-Plus Pricing**
| **Cost Component** | **Basic Tier** | **Premium Tier** |
|--------------------------|----------------|------------------------|
| Materials | 30% (e.g., clay, tools) | 40% (imported serums) |
| Labor | 40% | 30% (specialized staff)|
| Overhead | 20% | 20% |
| Profit Margin | 10% | 20–30% |

#### **Value-Based Adjustments**
- **Bridal Markup**: 50% margin (vs. 30% for standard services) due to emotional pricing and bundled value.
- **Ethical Premium**: Charge 10% more for organic products, reinvesting 5% into local supplier partnerships.

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### **Competitive Pricing Analysis**
| **Service** | **Boaz (ETB)** | **Local Salon (ETB)** | **International Chain (ETB)** |
|---------------------------|----------------|-----------------------|-------------------------------|
| Haircut | 300–500 | 150–300 | 1,000–1,500 |
| Facial | 500–1,500 | 200–500 | 3,000–5,000 |
| Bridal Package | 10,000–25,000 | N/A (home stylists) | 50,000+ (imported brands) |

**Key Advantage**: Boaz bridges the gap between low-cost local salons and overpriced international chains, offering **global quality at 30–50% lower prices** than foreign competitors.

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### **Promotional Pricing**
- **Launch Discounts**: 20% off for first 100 customers (limited to basic tier).
- **Referral Program**: Earn 500 ETB for every friend who books a premium service.
- **Seasonal Offers**: “Coffee Month” – free coffee scrub with any 2,000 ETB+ service.

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### **Risk Mitigation**
- **Currency Fluctuations**: Source 60% of materials locally (e.g., besema clay, coffee).
- **Price Sensitivity**: Offer “Pay in 3” installment plans for bridal packages via telebirr.

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**Conclusion**: This tiered model ensures Boaz dominates both mass and premium segments. By undercutting international chains on price and outperforming local salons on quality, the salon is positioned to capture **30% of Addis’s beauty market** within 2 years, with premium services driving 65% of profits.