Pricing Policies
The following is an excerpt from our book, Pricing for Associations, available now on Amazon.
It is important to maintain consistency and transparency in pricing policies across the organization to ensure fair treatment for all stakeholders. Therefore, the following pricing policies are applicable to all teams, products, and services, and any deviations or variances from these policies require CEO approval. This ensures that any pricing decisions made are thoroughly vetted and aligned with the organization's mission and goals. The CEO will review and approve any pricing changes that deviate from the established policies to ensure they are in line with the overall pricing and value strategy of the organization. By having a centralized approval process, the organization can avoid inconsistencies and prevent any unfavorable outcomes resulting from pricing decisions.
1. Pricing and value strategy: Each product should have a clear pricing and value strategy inclusive of the target market, value delivery, pricing objectives, and pricing tactics. This should be reviewed by product annually.
2. Price and value setting: Price and value setting will be done in accordance with the organizational structure outlined above and the current product timelines below. Each product should be reviewed annually prior to the budgeting cycle and any work (data analysis, value analysis, pricing analysis) that must be done should be scoped for completion prior to budgeting approval.
3. Price and value changes: Any changes to price must be approved based on the above organizational structure and below product timeline with approvals prior to the budgeting cycle. Value adjustments should also be included, inclusive of any cost adjustments for additional resources.
4. Discounting: Discounts may only be offered with pre-approved guidelines. If a one-off discount is requested, it must be approved by both the Director of Pricing and CEO and documented with rationale for record keeping. An example would be offering a discount to a large group or sponsor.
5. Price promotions: Price promotions may only be offered with pre-approved guidelines. New price promotions should be incorporated into price and value changes for each budgetary cycle. An example would be adjusting an early bird rate for a conference.
6. Price and value monitoring and analysis: Each product should be analyzed for specific metrics and KPI’s by product for each budgetary cycle and documented for annual growth and justification of value delivery.
7. Price and value communication: Price and value changes should be communicated by department heads with CEO approval using the following format:
Communicate how we have heard them over the past year (surveys, focus groups, etc.) to make value adjustments.
Communicate how we are expanding resources and value delivery, and our price increase will enable the expanded growth of the program/offering.
Communicate how we are committed to ongoing fulfillment of our mission through the value we deliver to them.
8. Price compliance: This policy should outline any rules and regulations that must be followed to ensure that pricing practices are legal and ethical.
