Start Simple with Pricing, but Leave Room for Flexibility
Pricing is hard to get right, but it’s critical to the success and longevity of virtually every organization. Pricing is especially tricky in the Membership Economy because instead of pricing widgets, organizations need to price ongoing experiences and perceived value.
Pricing is critical because money drives the economy. Even nonprofits need to manage this scarce and limited resource. Throughout time, vendors have determined the price of a product or service in two primary ways:
The cost of making the product or supplying the service
The perceived value of the product ...