Pricing Your Nonprofit Services
from Stanford Social Innovation Review:
Nonprofits care about pricing just as much as their for-profit counterparts. Since nonprofit organizations generally aim to serve as many customers as possible, their prices have to encourage growth. However, the urge to set low prices is balanced by the need to produce revenue to improve services. Here are nine pricing tips that simultaneously generate higher revenues and growth. Best of all, these tips emphasize the importance of better serving customers by offering pricing choices.
Adopt the right nonprofit pricing mindset .
Some customers value and are willing to pay more for a nonprofit’s services or products than others. It is okay – actually, it is necessary – to charge higher prices to some and use the extra revenue to subsidize others (via discounts). This perspective often creates controversy within an organization. It is important to discuss and gain consensus amongst key employees on this new pricing mindset to ensure a seamless execution of a revenue and growth strategy.