How Associations Can Increase Revenue Through Smarter Pricing—Dr. Michael Carr-Tatonetti, CAE, CPP, Founder and CEO, Pricing for Associations

Pricing rarely receives the same strategic attention as membership growth or cost control, even though it can have a faster impact on an association’s bottom line. Dr. Michael Carr-Tatonetti, CAE, CPP, founder and CEO of Pricing for Associations, spent more than two decades in association and nonprofit management before launching a consulting practice focused on helping organizations optimize pricing for dues, events, and sponsorships. He believes associations that base pricing decisions on a clear understanding of member value consistently outperform those that rely on historical pricing, competitor benchmarks, or internal assumptions. 

In Carr-Tatonetti’s experience, associations apply different levels of rigor to different revenue streams. Dues pricing is closely scrutinized during every budget cycle, with even modest increases drawing board debate and member attention. Sponsorship packages, however, often remain unchanged for years, while educational programs may be priced at or below cost and event fees adjusted only sporadically. He encourages associations to move beyond cost-plus and competitor-based models and instead develop pricing strategies grounded in research, member preferences, and demonstrated willingness to pay. 

In this conversation with Association Adviser, Carr-Tatonetti discusses why discounting is often the most expensive response to declining demand, how associations can adopt value-based pricing for dues and events, and why steady, incremental price increases can deliver greater long-term financial benefits than one-time revenue fixes. 

Association Adviser: You’ve said pricing is the fastest lever for improving profit, faster than cutting costs or driving new sales. Why is that true, and what does it mean for how leaders spend their time? 

Dr. Michael Carr-Tatonetti: Every association has three ways to improve profit: Acquire new customers, cut costs, or adjust prices. Acquiring new customers matters. It is an important strategy, but it takes time, and it is not an easy, short-term win. Cutting costs sounds simple, but it usually means cutting quality. Most associations don’t have much fat to carve out. They are already running lean. 

Pricing is different. You can raise a price without major changes to your costs, and every added dollar goes straight to profit. Here is a simple example. Say you sell a product for $100, and your profit margin is 5%. That means you earn $5 per sale. Now raise the price to $105. Your profit just doubled, from $5 to $10. Doubling registrations would take far longer. Finding the same savings through cuts would be far harder. 

For leaders, the lesson is clear: Pricing deserves real time and attention. It should not be set once and rolled forward. Small, thoughtful adjustments can do more for sustainability than almost anything else on the agenda. 

AA: When event registrations, sponsorships, and renewals soften, discounting is often the go-to response. What are the hidden costs, and what should leaders try first? 

MCT: Discounting feels like an immediate action, but in reality, it cuts profit, not costs. The product costs exactly the same amount to deliver; you are simply collecting less for it. 

And the math adds up fast. Most discounts run anywhere from 10% to 50%. Yet most associations operate on profit margins of 5% to 10%. Do the math, and the result is sobering. Once a discount exceeds your margin, you are losing money on every sale. A $100 product with a 5% margin costs $95 to deliver. Discount it by 10%, and you lose $5 each time someone buys. 

So, what should leaders do instead? Focus on who will buy, and once you are clear on the audience who values the product most, price it so it is profitable. That is the goal. If profitability simply isn’t achievable, then discounting is not the answer. A better question is this: Is there a business case to continue this product? Sometimes the most strategic move is to retire an offering and invest those resources to where members see more value. 

AA: You advocate value-based pricing over cost-plus or competitor-led pricing. What does it take to make that shift, especially for dues and events? 

MCT: Cost-plus starts with what something costs you. Competitor-led pricing starts with what others charge. Neither asks the most important question: What do members value, and what will they pay for it? Value-based pricing starts there. 

Making the shift requires a few things. First, listen to members through surveys, focus groups, and interviews. Second, measure value before you set price. Tools like MaxDiff, a pricing research methodology which allows for testing relative value based on a list of features or attributes, show which benefits matter most. Van Westendorp, a pricing research methodology which tests for a pricing elasticity, reveals the range members find acceptable. Together, they help you sort features into what belongs in every tier, what works as an add-on, what can command a premium, and what to deprioritize. 

For dues, this means knowing which benefits truly drive value, then communicating them clearly. It may also point toward tiered membership. For events, it means pricing the experience and outcomes, such as networking, credentials, and access, not just the cost of the venue. Finally, value-based pricing needs a home. Assign ownership and review it regularly so it becomes practice, not a one-time project. 

AA: Small, regular price increases are one of your consistent recommendations. Why do associations hesitate, and how can they move past it? 

MCT: The hesitation is understandable. Leaders worry about losing members, boards feel uneasy, and many believe a mission-driven organization should keep prices low. Those are real concerns. But not raising prices is also a decision. Costs rise every year, and when prices stay flat, the association absorbs the difference. Eventually, a large catch-up increase becomes necessary, and that is far harder on members. 

Small, steady increases are gentler. A modest annual adjustment, often in the range of three to five percent, becomes expected. Events can sometimes support more. To ease fears, run a revenue-neutral drop-off analysis. Ask how many members you could lose at the new price and still hold revenue. The answer is usually more than leaders expect, and actual losses are often far smaller. 

Communication matters too. For recurring commitments like membership, certification, and sponsorship, share the change and lead with value. For one-time purchases like events and education, an announcement is often unnecessary. Above all, build increases into policy. Then it stops being an annual debate. 

AA: Across dues, events, sponsorship, and education, where do you most often see pricing applied unevenly, and what does that cost? 

MCT: Dues usually get the most attention. Boards debate every increase. Members notice every change. Meanwhile, other revenue lines are often priced out of habit. Event fees creep up only occasionally. Education is sometimes priced at or below cost. Sponsorship is the one I see overlooked most. Packages stay the same for years. Prices get set by what was charged last time, then they get negotiated down. 

That imbalance is costly. Associations often leave the most money on the table in the very areas where buyers are less price sensitive. Sponsors are businesses with marketing budgets. Many learners have employer support. Yet those lines are priced as if they were fragile. The member and non-member gap also gets inconsistent, which weakens the case for joining. 

The fix is to apply the same discipline across the full portfolio. Review every product line, not just dues. Ask what value each offering delivers and to whom. Then track results with clear metrics, so every revenue stream gets its fair share of strategic attention. 

AA: If an association wants to understand what members are truly willing to pay for, where should it begin? What should leaders collect? 

MCT: Start with the data you already have. Before surveying anyone, look at several years of trends. Review membership counts, retention, event attendance, product sales, and your own pricing history. Look at demand, satisfaction, and usage together. This tells you where you stand and where to focus. 

Next, study value. Ask members what matters most to them, and ask in ways that force real choices. MaxDiff is excellent for this because members cannot rate everything as important. Van Westendorp shows the price range members find acceptable. Segment the results. Early-career members, senior professionals, and organizational members often value very different things. 

Then move to price. Gabor-Granger helps identify the price that maximizes revenue. Conjoint helps you design the right package or tier structure. Round out the numbers with focus groups and interviews. Interviews are especially helpful for sponsors and key accounts, where surveys fall short. 

The order matters. Value comes before price. When you understand what members value, the right price becomes much easier to find and defend. 

Photo courtesy of Sandwish Studio/Shutterstock.com.