Lead With Value
The following is an excerpt from our book, Pricing for Associations, available now on Amazon.
Our decision to lead with value is not born out of arbitrary principles. It is a strategic imperative, deeply rooted in the essence of sustainability and growth. To understand this, we need to recognize that associations, despite their nonprofit status, are not immune to economic realities. Recessions and global disruptions are cyclic events, and financial resilience is the bridge that helps us navigate these tempestuous waters. If we don't meticulously manage our funds and ensure the delivery of significant value, we may find ourselves ill-equipped to weather these inevitable storms. Without profitability, we cannot expand our programs, advance our missions, or serve our members effectively.
The Voice of the Customer
Decisions on value adjustments should not be left solely to the boardroom. While the board holds a vital role in steering the organization, its members do not represent the entirety of our diverse audience, comprising members, event attendees, and sponsors. Value is not a one-size-fits-all concept; it's multifaceted and influenced by individual needs, challenges, and aspirations. To truly understand where we excel, where we can improve, and what's missing in our value offerings, we must engage with various segments of our audience. Their voices, experiences, and feedback become the compass guiding our value journey.
Value-Based Pricing Requires Value, and Your Customers Determine It
Value-based pricing is not a standalone strategy but an interconnected framework where value delivery precedes pricing decisions. In this approach, the value perceived by your customers is the North Star guiding your pricing strategy. Your audience determines the value, and your task is to align the price with that perception. The value offered must justify the price paid, creating a win-win scenario where customers find your products or services worth their investment.
Thinking Beyond the Expected
In the quest to lead with value, we encounter a paradox often articulated by the automobile visionary Henry Ford. When designing the Model T, he famously said, "If I had asked people what they wanted, they would have said a faster horse." While customer feedback is invaluable, true innovation often requires thinking beyond the immediate expectations. We must challenge ourselves to filter the desired outcome through the lens of unforeseen possibilities. It's about providing solutions that our audience may not have even considered but resonate deeply with their needs and desires.
In conclusion, leading with value isn't just a strategic choice; it's a path to resilience and growth. It is an ongoing commitment to our audience, a promise to deliver exceptional value, and a willingness to adapt and innovate in response to their evolving needs. Only by placing value at the forefront of our endeavors can we embark on the pricing journey with clarity, integrity, and a profound understanding of our audience's expectations.
