Association Pricing Pitfalls: 3 Common Mistakes and How to Fix Them
Is Your Association’s Pricing Strategy Helping You Grow—Or Holding You Back?
Pricing is one of the most important factors in ensuring an association’s financial sustainability. Yet, many associations unknowingly make mistakes that hinder their ability to generate revenue, engage members, and grow effectively.
Over the years, I’ve worked with many associations on pricing strategies, and I continue to see three major mistakes. Today, I want to share these with you—along with a better approach—so you can create a sustainable, data-driven pricing model that works for your association.
Mistake #1: Anchoring Pricing in the Wrong Factors
A frequent issue is basing pricing decisions on competitors’ prices or simply following historical trends with incremental increases. While these approaches may feel safe, they don’t always align with the actual needs and financial goals of the association.
Think of it like fitness: You could cut calories, adjust workouts, or try various strategies, but without a clear goal, you might not get the best results. Pricing works the same way—there are many ways to set prices, but not all will drive the best outcomes.
A Better Approach: Data-Driven Pricing
Instead of relying on industry trends or automatic price increases:
Conduct a pricing analysis to determine the best approach for your organization.
Focus on your unique value proposition rather than what competitors charge.
Align pricing with your financial sustainability goals for long-term success.
By using a data-driven approach, you can make pricing decisions that are strategic, not reactive.
Mistake #2: Misaligning Value and Price
Many associations assume their pricing reflects the value of their offerings—without actually confirming this with their audience. Pricing is often determined internally, based on what leadership believes is fair.
This is risky. If members don’t perceive value at the price you’ve set, engagement will decline, and your pricing model won’t be sustainable.
A Better Approach: Value-Based Pricing
To ensure pricing aligns with what members actually see as valuable:
Gather audience input through surveys, focus groups, and feedback.
Test different price points to understand what resonates with members.
Follow a structured pricing methodology rather than making assumptions.
The goal is to price based on actual member perceptions—not just internal expectations.
Mistake #3: Ignoring Audience Segments
A common issue is basing pricing decisions on feedback from a limited group—often board members, large organizations, or the most vocal members—while overlooking other key segments.
For example, board members often consist of seasoned professionals who have been engaged for years. While their insights are valuable, they may not represent the perspectives of younger professionals, marginalized groups, or smaller organizations
A Better Approach: Segment-Specific Pricing
To create pricing that meets the needs of all members:
Identify key audience segments (e.g., new vs. long-term members, small vs. large organizations).
Diversify member input to ensure a broad range of perspectives.
Consider tiered or flexible pricing models to accommodate different groups while maintaining financial sustainability.
By broadening your approach, you can create a pricing model that serves your entire community—not just a select few.
