Decoding the Art and Science of Pricing Methodology in Association Management
The following is an excerpt from our book, Pricing for Associations, available now on Amazon.
Why Pricing Methodology Matters
The intricacies of pricing methodology extend beyond mere arithmetic. It's about securing your fair share based on the value you deliver. This principle holds true across various scales, from the individual member to large-scale sponsors. The methodology becomes a lens through which associations can understand their audience's preferences and optimize their offerings accordingly.
Methods to Discover Pricing and Packaging Preferences:
Surveys:
When to Do a Survey: Ideal as the first step for anything member or non-sponsor facing to gather a broad set of data quickly.
Pros and Cons:
Pros: Rapid data collection, broad audience coverage.
Cons: Limited depth of understanding, potential for biases, lacks nuanced insights.
Focus Groups:
When to Use: When surveys are lacking and specific information is needed from certain segments. However, interviews are often recommended over focus groups for pricing analysis by us.
Pros and Cons:
Pros: Group dynamics, diverse perspectives.
Cons: Potential for groupthink, limited individual insights, may not provide detailed data for pricing decisions.
Interviews:
When to Use: When deeper insights are required, especially post-survey, or for sponsors where focused discussions can reveal unique needs.
Pros and Cons:
Pros: In-depth insights, focused discussions, tailored for specific needs.
Cons: Resource-intensive, potential for bias, may not capture collective sentiments.
