NAMIBIA – TransNamib, Namibia’s national rail operator, has announced an initiative dubbed ‘TransEvaRail Pricing Strategy Project’, that aims to gather detailed insights and feedback from various stakeholders to inform its pricing decisions.
Abigail Raubenheimer, the corporate communications manager for TransNamib, highlighted the project’s core objective: to review and update the current pricing strategy.
This initiative will ensure the company remains competitive while meeting customer needs and promoting sustainable business practices.
“The goal is to adopt pricing strategies that benefit all stakeholders and support sustainable business practices,” Raubenheimer said.
The German government development agency GIZ Namibia is funding the entire project, which includes appointing a consultant in May to carry out the study.
Due to current cash flow constraints, TransNamib could not finance the study independently. The project is expected to be completed by the end of July, providing the necessary data to potentially restructure TransNamib’s pricing strategies.
Raubenheimer emphasized the importance of this support, stating that the project aims to create efficient pricing structures that are competitive and sustainable.
This involves ensuring that prices reflect current market conditions, cover service provision costs, and optimize revenue without deterring customers.
The new pricing strategy will incorporate various elements, including market alignment, cost recovery, revenue optimization, customer value, simplicity and transparency, and flexibility.
Market alignment ensures that prices reflect current market conditions and are competitive with similar services.
Cost recovery sets prices that cover the costs of service provision, including maintenance, operations, and equipment investments.
Revenue optimization aims to identify ways to maximize revenue without deterring customers, such as dynamic or tiered pricing models.
Ensuring customer value means setting fair prices that match the quality and reliability of services. Additionally, simplicity and transparency will create a pricing structure that is easy for customers to understand and transparent in its application, reducing confusion and building trust.
Flexibility will allow TransNamib to adjust prices based on demand, seasonality, or other market factors, ensuring competitiveness and responsiveness to changes.
For all the latest fresh produce industry news updates from Africa, the Middle East, and the World, subscribe to our NEWSLETTER, follow us on Twitter and LinkedIn, like us on Facebook, and subscribe to our YouTube channel.
