Price is Right –– Helping Associations Find Financial Resilience

Association Chat Podcast

Associations need to focus on financial resilience, innovative pricing strategies, and value proposition in order to thrive in a changing landscape and ensure their existence.

• 00:00 📚 Associations need financial resilience and pricing aligned with value to thrive, as traditional revenue sources have shifted and competition comes from partners, not other associations.
  • Dr. Michael Tatonetti discusses his new book "Pricing for Associations" and the proprietary framework to align pricing with value, empowering associations to thrive even in tough times.
  • The speaker expresses gratitude for the support and friendship of the person they are speaking to, acknowledging their role in their personal and professional growth.
  • Understanding the importance of pricing is crucial for associations, and the book was written to make this knowledge accessible and organized.
  • Financial sustainability is crucial for associations to continue their work, as the traditional revenue sources have shifted and competition now comes from partners rather than other associations.
  • Associations need financial resilience to continue existing and playing an important role in gatekeeping thought leadership and knowledge.
  • Pricing should be aligned with the value and delivery of the organization's offerings, and regular assessment and data collection should inform pricing decisions.
• 07:08 📈 Associations are using technology and data to create innovative products, focusing on pricing and value proposition to navigate tough times and declining membership.
  • Organizations are exploring new ways to use technology and data to create innovative products and are recalibrating their focus on current products, membership, education, and sponsorship.
  • There are various ways to price new products, but organizations often struggle with properly conceptualizing the product and end up wasting time and resources on products that don't meet the needs or expectations of their target audience.
  • Associations need to detach their value proposition from being about the organization and focus on new products and pricing frameworks to navigate tough times and declining membership.
  • Understanding the value proposition and segmentation, as well as deep diving into what value is being delivered and where there are gaps, is crucial for associations to stay relevant and make decisions on what features to prioritize.
  • The speaker discusses the importance of understanding membership tiers and pricing strategies to encourage members to upgrade to higher levels.
  • Different organizations have different strategic objectives and it's important to define success for each project, considering factors like profit, serving more people, and increasing membership or credentialing.
• 16:11 📈 Associations can find financial resilience through accessible knowledge and help, regardless of budget constraints, leading to improved profitability.
  • The speaker discusses methods for finding financial resilience for associations, including the availability of their book for free on their website.
  • The speaker discusses the accessibility of their knowledge and the help they offer to people to find answers, even if they can't engage directly.
  • The speaker discusses the importance of providing information to help elevate the entire association industry, regardless of budget constraints, in order to help improve profitability.
  • Started freelancing in marketing to help organizations, but reconsidered becoming a CEO due to uncertainty of reporting to a board and transient nature of board members.
  • The speaker had to cancel a scheduled talk on leadership at an ASA annual event due to the COVID-19 pandemic, as the topic of office complaints was no longer appropriate in the current situation.
  • The speaker discusses how they initially resisted focusing on pricing for associations but eventually gave in due to high demand, leading to the growth of their business.
• 23:00 📈 Education Association professionals need to prioritize understanding profit margins, financial sustainability, and serving their members to achieve financial resilience and ensure their association's existence.
  • The speaker emphasizes the importance of understanding profit margins and the impact of discounting for Education Association professionals to achieve financial resilience.
  • The speaker emphasizes the importance of financial sustainability and making smart business decisions to ride out economic downturns and ensure the association's existence.
  • Associations need to focus more on membership and their purpose rather than just revenue.
  • Associations should focus on serving their members rather than prioritizing sponsors and revenue.
  • Membership needs to be the central focus, with a strong emphasis on providing value to members to prevent them from seeking education and resources elsewhere.
  • The speaker emphasizes the importance of membership and community in associations and distinguishes between consultants who are doers and thought leaders.
• 33:10 📈 Focus on growing US market, reconfigure pricing based on customer feedback, build diverse and intentional firm, collaborate with industry experts for bundled online education, and stay current with evolving trends in financial resilience.
  • Focus on growing the US market instead of internationally, be honest and open with clients, and be willing to push back on decisions that don't align with your values.
  • Reconfiguring pricing based on customer feedback and providing education and expertise to clients is valuable in building trust and making an impact.
  • Building a diverse and intentional firm with flexible work hours, above market rate pay, and a focus on educating and providing jobs is a source of pride and value for the speaker.
  • The speaker discusses the importance of intentionality and learning in pricing for associations, sharing a specific example of how client feedback has impacted their work.
  • Collaboration between associations and industry experts can help organizations offer bundled online education to members, meeting the demand for convenient access without additional purchases.
  • Access to evolving trends in financial resilience is important for associations to stay current and adapt.
• 41:17 📈 Empower clients with data-driven direction, build trust through content marketing, and prioritize proper pricing strategies to maintain positive client relationships and achieve financial resilience in the association industry.
  • Let the data determine the direction, empower clients to DIY, and acknowledge the limitations of guessing.
  • Building trust and collaboration is crucial for success in working with new colleagues and clients, especially in the association industry, and content marketing is a key strategy for achieving this.
  • Creating trust and building a client base through content marketing by providing valuable information for free and receiving referrals from past clients is essential for consultants and businesses.
  • Building trust with clients is important in financial discussions, and red flags usually appear during sales calls when clients may not be ready or don't know what they want.
  • The speaker discusses the importance of proper pricing strategies and the need for planning and communication in implementing changes.
  • The speaker aims to maintain positive client relationships and ensure that their work is recommended and rehired, with the goal of achieving a high net promoter score.
• 50:52 📈 The speaker is considering building a SAS product for pricing for associations and hiring an associate to expand their business while maintaining high customer service.
  • The speaker is impressed by the person's wide range of interests and deep knowledge in the subjects they care about.
  • Prioritizing and focusing on tasks is influenced by the speaker's neurodivergent nature and bursts of creative energy, leading to the need to manage capacity and energy levels for optimal client outcomes.
  • The speaker filters potential pursuits by looking for ease and timing, and is considering building a SAS product for pricing for associations.
  • The speaker is considering hiring an associate to expand their business and is working with a firm to assess their capacity for growth.
  • Maintaining high customer service while growing a team and finding a balance between customer satisfaction and business growth is a challenge for the speaker.
• 55:52 📈 Michael discusses pricing strategies and the importance of keeping the bigger picture in mind, with a reminder to stay curious and keep learning.
  • Connect with the speaker on LinkedIn for updates and sign up for the newsletter to receive a PDF book and weekly updates.
  • Michael discusses pricing strategies and the importance of keeping the bigger picture in mind, with a reminder to stay curious and keep learning.