Maximizing Association Value: Unleashing 3 Powerful Membership Pricing Strategies

Maximizing Value: 3 Membership Pricing Strategies for Associations
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How to Get Membership Pricing Right

Ever wondered how to nail membership pricing? Think about “The Price is Right” game show. It’s been on for half a century because it resonates with us. Prices matter, but they can be tricky to pin down. Getting them right can lead to big rewards.

Likewise, association pricing often feels like a guessing game. How do you even determine the prices of your offerings? Some things might have always been priced a certain way, and you might not know why or who decided. If you’re like most, you rely on your best judgment without much further thought.

But here’s the thing: nailing your pricing strategy comes with a prize. And it’s not just about money. Associations have a “Triple Bottom Line” to consider: Money, Member Value, and Mission.

Let’s delve into each of these aspects:

1. Money: Researching Membership Pricing

The value of your offerings is determined by how much money they generate. This means subtracting your costs from the price. So, start by asking yourself: are we charging enough for our memberships? Is there room to increase prices? Take a look at your competitors and similar organizations. What are they charging? Also, consider surveying your members to find out how much they are willing to pay. You might be surprised to discover that they are willing to pay more than you think.

Now, let’s talk about your expenses. Do you really know how much it costs to produce your offerings? If you’re like many associations, you may not have a clear idea. You might know the cost of organizing an event, but what about the true cost of training, content, or even membership itself? It can be challenging to figure out, but it’s crucial that you do. When organizations conduct an honest cost analysis, they often realize they’re losing money on things they hadn’t considered.

2. Member Value: Measuring Member Value

Money isn’t the top priority for us as a non-profit. We value our members above all else. Our goal is to enhance the value of membership through our programs and offerings. Determining member value isn’t subjective; it can be measured. One effective method is by analyzing membership renewals. Renewing members are likely to be more engaged with certain offerings compared to others. Additionally, some offerings may have no impact on the decision to renew. By closely examining the correlation between renewal and member engagement, we can gain valuable insights into what our members truly find valuable. This understanding will help us enhance our membership pricing and ensure that our programs and offerings align with what our members truly value.

3. Mission Aligning Membership And Mission

When it comes to membership pricing, it’s important to consider what you offer in relation to your mission. Some things you provide may not directly benefit your members, but rather serve the overall purpose of your organization. Take, for instance, your content. If raising public awareness aligns with your mission, you probably offer a majority of your content for free. Evaluating the impact of your mission objectively is also crucial. You can assess alignment with your strategy, the ability to bring about change, and other relevant factors. It goes without saying that certain aspects are absolutely mission-critical, and it’s vital to assign them appropriate value.

The ultimate goal for your association’s pricing strategy is to maximize at least one of the three bottom lines. It’s acceptable if a product or service doesn’t generate profit, as long as you intentionally choose to provide it at a loss. Consider a database that offers immense value to your members, even if they couldn’t afford it otherwise. However, it’s not acceptable to incur losses unintentionally or on offerings that don’t directly benefit your members or advance your mission. When it comes to membership pricing, striking a balance is key.

The Membership Price Is right

In conclusion, finding the perfect membership pricing strategy is crucial for associations looking to maximize their value. Just like “The Price is Right” game show has captivated audiences for decades, getting your prices right can lead to significant rewards. Associations must consider their triple bottom line: money, member value, and mission. By carefully crafting pricing strategies that align with these factors, associations can attract and retain members while fulfilling their mission. So, don’t underestimate the power of pricing and take the time to unleash these three powerful strategies to unlock the full potential of your association’s value.

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