Pricing for Associations in 2022: What To Know
This guest blog post is by Dr. Michael Tatonetti.
As we head into 2022, the biggest question that we are asked is “What should we be ready for when it comes to pricing for associations?”
My answer is consistent:
If your organization does not have a Pricing and Value strategy for your organization, that is where you need to begin.
What is the Pricing and Value strategy? It is a framework that dictates how your organization defines value, delivers value, measures the value, and prices accordingly based on the value that you deliver.
Your organization should know if pricing is centralized, meaning your board or your CEO is making these decisions, or if it is decentralized, meaning that your departments have some level of freedom to set prices within parameters that have been established.
Your organization should know how frequently you are conducting market research to determine if the value that you are delivering is hitting the mark, or missing the mark, and to evaluate how frequently you will look at adding new value or revising the value that you deliver so that you hit the mark more often than not.
Your organization should have parameters set on what prices you are looking at charging across your product landscape.
Which of your products are your loss leaders?
Which of your products are the ones that will really add to your bottom line, and therefore your reserves?
Is your goal for any specific product to bring in new members or customers, or is the goal to increase your profitability, or is your goal to reach the largest number of people possible?
These are all things that a Pricing and Value strategy should establish so that everyone who works within your association can clearly walk out the plan.
A Pricing and Value strategy is best aligned with your overall strategic plan. Whatever is in your strategic plan is more than likely about providing value and capturing your part of the value that you provide through the pricing that you establish.
The good news is if you do not have a Pricing and Value strategy, we have an entire eBook that will walk you through what a Pricing and Value strategy should look like and the meetings that your team should be having to develop your own.
You can download that eBook below or hit the contact button on our website to set up a free consultation and we can discuss establishing a Pricing and Value strategy, alongside your team to ensure that it's exactly what you need for the years to come.
Download your copy of the eBook here.
