Why Associations Struggle with Pricing

Why Is Pricing So Difficult for Associations?

Pricing is one of the most critical factors in an association’s sustainability—yet, many struggle to get it right. Unlike traditional businesses that price based on direct competition or profit margins, associations face unique challenges: balancing value, accessibility, and long-term financial health.

If your association has ever hesitated to raise prices, faced member pushback, or struggled to communicate value, you’re not alone. Let’s explore the key reasons associations struggle with pricing and how to overcome these common challenges.

The Biggest Pricing Challenges Associations Face

1. Fear of Losing Members

One of the most common reasons associations keep prices low is the fear that increasing them will drive members away. Associations often assume that price sensitivity is the primary reason people leave—but in many cases, perceived value is the real issue.

🔹 What to Consider:
✔ Instead of assuming members will leave due to price increases, survey them to understand what they value most.
✔ If price adjustments are needed, clearly communicate why and how they enhance the member experience.
✔ Offer tiered pricing to accommodate different budgets while maintaining financial sustainability.

2. Underpricing to Compete with Free or Low-Cost Alternatives

With so much free content available online, many associations worry about competing with free industry resources. As a result, they may underprice their offerings, assuming lower prices will attract more members.

🔹 What to Consider:
✔ Your association’s strength isn’t just information—it’s community, exclusive access, and credibility.
✔ Instead of lowering prices, focus on communicating the unique benefits members receive.
✔ Free resources can’t replace curated experiences, networking opportunities, and expert insights.

3. Pricing Based on Costs Instead of Value

Some associations determine pricing by calculating their costs and adding a small margin. While covering expenses is essential, pricing should be based on the value provided, not just the cost to deliver it.

🔹 What to Consider:
✔ What problems does your association solve for members?
✔ How do members benefit from your programs, events, and services?
✔ Would your members be willing to pay more if they truly understood the value?

Value-based pricing helps associations set prices that reflect their true worth, rather than just breaking even.

4. Lack of Data-Driven Pricing Decisions

Many associations set prices based on historical trends or board member opinions, rather than data-driven insights. Without understanding what members are willing to pay or which offerings they value most, pricing decisions become a guessing game.

🔹 What to Consider:
✔ Conduct surveys to gauge member expectations and willingness to pay.
✔ Track engagement data to see which services and benefits are most valuable.
✔ Experiment with pricing models (tiered memberships, bundled offerings) to find what works best.

Using data removes uncertainty and leads to more strategic, confident pricing decisions.

5. Difficulty Communicating Value to Members

Even if your pricing is set correctly, it won’t be effective unless members understand the value behind it. Many associations struggle with clearly articulating why their offerings are worth the price.

🔹 What to Consider:
✔ Ensure your website, emails, and marketing materials emphasize benefits, not just features.
✔ Use testimonials and success stories to show real-world impact.
✔ Reinforce the idea that membership is an investment in professional growth, not just an expense.

A well-communicated value proposition makes pricing easier to justify and increases member retention.

How to Overcome Pricing Struggles and Charge with Confidence

If your association is struggling with pricing, here are a few key steps to take:

✔ Assess Your Current Pricing Strategy – Is your pricing based on data and member value, or outdated assumptions?

✔ Gather Member Insights – Conduct surveys, focus groups, and feedback sessions to understand what members truly value.

✔ Test Different Pricing Models – Consider tiered pricing, bundling, or premium memberships to create options for different budgets.

✔ Communicate Value Clearly – Reinforce why your pricing reflects high-quality experiences, exclusive benefits, and professional growth.

Pricing challenges can hold your association back—but with the right strategy, you can set sustainable, value-driven pricing that supports long-term growth.

Are you ready to tackle your association’s pricing problems?  Visit www.pricingforassociations.com today to schedule a virtual coffee chat where we can discuss what your organization needs and how we can best support you.