Article Business Development 1 min read
Now Is the Time to Update Your Pricing Strategy
At the start of the pandemic, many associations offered discounts to members on their products and services. But that is not a sustainable model moving forward. Instead, groups need to align value with pricing.
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In recent years, many organizations offered discounts on products and services as members recovered from the effects of the pandemic. But it’s time to stop being risk-averse and take a proactive approach to pricing, according to Dede Gish-Panjada, MBA, chief operating officer and chief consultant at Bostrom.
That approach should involve assessing the current value proposition of individual products and services, and then determining pricing based on that assessment.
Michael Tatonetti, CPP, CAE, founder of Pricing for Associations, agrees that associations should consider the value they offer and adopt a strategic approach to pricing. However, not all products warrant price bumps, despite the discounting that’s happened over the past three years.
“Just like any business, your product has to be good in order for the market to pay for it,” said Tatonetti. “If you’re not delivering what [customers] need or if it’s outdated, no one’s going to buy it. We need to have the value conversation, with the pricing conversation in alignment.”
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