When was the last time your association evaluated its pricing strategy? If you’re unsure, or if the answer isn’t recently, now’s the time to reevaluate.
Why? Without routine pricing reviews, your association could be leaving profit, and member satisfaction, on the table. Regular pricing reviews will keep your association ahead of competitors, alert you to missing revenue opportunities, and ensure you don’t lose relevance with your members.
Continue reading to discover how to conduct routine pricing reviews at your association, create a pricing committee, and successfully leverage a pricing strategy at your organization.
Why you should review your association’s pricing regularly
When it comes to determining prices for your association, you should never set and forget your rates. Market conditions will always shift, member expectations will evolve, and economic factors like inflation can influence perceived value. If your association’s pricing stays stagnant, you risk losing relevance and revenue.
Why are regular pricing reviews essential? Here are four key factors:
1. To stay profitable and competitive
Regular pricing reviews will ensure your association’s prices align with market trends and competitor offerings.
2. To reflect member value
As you add new membership benefits, programs, or experiences, your pricing should evolve to reflect this increased value.
3. To adapt to economic shifts
Inflation, supply chain issues, and global economic changes will impact your member’s purchasing power. When your association reviews pricing, you can adjust and plan accordingly for these shifts.
4. To support revenue goals
Conducing annual or semi-annual reviews will help your association assess if your pricing strategy supports your financial objectives.
By making pricing reviews part of your strategic planning process, you’ll keep your association’s value proposition strong and relevant.
What is a pricing committee?
A pricing committee is a dedicated group of stakeholders within your association who are tasked with evaluating, developing, and routinely updating your pricing strategy. Your pricing committee should take a holistic approach, balancing member value, operational costs, and revenue goals.
Unlike ad-hoc pricing decisions made in isolation, a pricing committee brings diverse perspectives and expertise to the table. When you create and use a pricing committee, you’ll ensure more thoughtful and data-driven decision-making at your association.
How to set up a pricing committee at your association
Setting up a pricing committee doesn’t have to be an overwhelming process. To get started with your association’s pricing committee, follow these four simple steps:
1. Define your committee’s purpose and goals
Determine what you want your pricing committee to achieve. Will they evaluate membership dues, registration for events, or develop pricing for new services? Clarifying the scope of your pricing committee will help to avoid mission creep.
2. Identify key stakeholders
When establishing your pricing committee try involving a mix of internal stakeholders from your leadership, finance, membership, and marketing teams. Each role will offer a unique perspective on pricing decisions.
3. Establish a regular meeting cadence
To ensure your pricing committee meets your goals in a timely manner, you’ll want to determine how often your committee will gather — monthly, quarterly, or bi-annually.
4. Create a committee charter
Document your pricing committee’s goals, responsibilities, and decision-making authority to ensure clarity and accountability amongst your stakeholders.
Once your pricing committee is established, it’s important to maintain momentum with regular meetings and a clear agenda to keep your stakeholders on track.
Key roles and responsibilities for association pricing committees
Ready to take your association’s pricing committee to the next level? To guarantee success with your pricing committee, you’ll want to create structure and clarity around each of your stakeholder’s roles.
Here’s a breakdown of six key roles on a pricing committee and their responsibilities:
1. Committee chair
When selecting this important role, consider a senior leader to set meeting agendas, facilitate discussions, and drive your committee’s progress.
2. Finance representative
Elect someone from your finance team to provide insights on your cost structures, financial goals, and how pricing changes will impact your overall revenue.
3. Membership representative
By choosing someone to serve from your membership team, you’ll bring the voice of members to the table, offering feedback on membership needs, expectations, and perceived value.
4. Marketing and communications
When you select a team member from marketing or communications, you’ll ensure any changes to pricing are communicated clearly to your members and the public.
5. Product/program representative
This important role provides input on how pricing impacts specific products, programs, or services at your association, ensuring alignment with your strategic goals.
6. Advisors/external members
If needed, you can bring in consultants or members to provide an outside perspective. This role is optional but can be very helpful in building out your pricing committee.
