Presentation on theme: "Not for Profit Symposium How Associations are Finding Revenue Now Prepared and Presented by Andrew S. Lang CPA President, LangCPA Consulting, LLC Not for."— Presentation transcript:
Not for Profit Symposium How Associations are Finding Revenue Now Prepared and Presented by Andrew S. Lang CPA President, LangCPA Consulting, LLC Not for Profit Symposium How Associations are Finding Revenue Now Prepared and Presented by Andrew S. Lang CPA President, LangCPA Consulting, LLC
Introduction There are hundreds of ways associations find new revenue, the most common are: Cutting Costs Fixing Pricing Expanding to New Markets Developing New Products and Services
The solutions depend on the particular association and its circumstances including the: health of the niche financial strength of the organization competitions offerings size and strength of the membership capabilities of the staff … and more
And yet there are many solutions that will work for most associations. These are the ones we will focus on today.
Each solution will be presented by using specific current examples. These examples, taken from my articles and columns in Associations Now, can all be found at: www.langcpa.com/articles-texts/#addrev
Most associations assume that by now they have cut every possible cost, but have they? Outsourcing, in-sourcing, and competitive bidding saved Anesthesiologists $550,000 per year* Keeping all costs as low as possible** *Cost control boosts the bottom line, July 2010 **Creativity, not just cost cutting, July 2011
Poor pricing is endemic to the association industry Many of those doing the pricing dont even know what their products actually cost!* *The value of knowing the cost, February 2010 $$$$$$$$$$$$$$$
But pricing is a problem throughout the industry: We are mission oriented The department wants to maximize volume We fail to look at what the market will bear* … and we leave prices alone too long!** *When the price isnt right, September 2008 **One certification two new revenue streams, April 2011
We are becoming better at charging premium items at a premium. By now I hope that everyone is: charging extra for the exhibit booths that are on corners ($150 - $250) Value pricing the back cover and inside covers of their key magazines charging higher than the competition for unique new products
Raising dues is also a pricing issue My experience over the last several years is that it has worked for many associations*, ** What is your experience? *Revitalizing revenue, June 2010 **Raising dues in a recession, December 2010
Pricing can frequently be improved by having all significant products priced by a committee made up of someone from: the department creating the item marketing accounting … and the final decision belongs to the marketer.
Once pricing has been fixed, a great deal can be accomplished by seeking new markets for existing products.*, ** *New market visionaries, November 2009 **Nondues revenue from nonmember education, November 2011
Has anyone here had success with taking existing products to new markets? February 2012 – Helping members export to China
And so we come to the subject of new products and services. Before we begin I want to give you the key to success. It is simply that: So lets look at a variety of solutions beginning in 2010 and ending in 2012! When something new succeeds it almost always fills a specific member need.
The National Association of College and University Business Officers* There was no single resource where the members could find all of the services and products that they needed. NACUBO teamed with a for-profit and built a buyers guide. They designed it, they collect the revenue, and it was profitable from the start. * A different kind of buyers guide, April 2010
Marble Institute of America* Members caught it a terrible market needed marketing opportunities. The MIA created a CEU opportunity for the members to teach architects, designers, etc. Revenue came from various fees for the members – who were delighted to pay! Retention has never been better. *New Revenue + Member Satisfaction = win/win, May 2010
American Society of Transplant Surgeons* Medicare created a new rule that every transplant center be audited - the members who ran the centers were unsure if they were ready. Not only did the ASTS create a mock audit process for the centers, but they went from identifying the need to delivering the product in six months – and they are netting tens of thousands of dollars from a very happy membership. *Just–in-time New Product Delivery, August 2010
Health Information and Management Systems Society This the only association I have seen make money from a virtual conference. I include it more as a cautionary tale. The vendors are big companies selling very expensive products to the members of HIMMSS who are decision makers. If you cant replicate the circumstances Id be careful. Virtual conference provides real profits, September/October 2010
National Association of Counties* The nations counties found it very difficult to get useful benchmarking data. NACo worked with a for profit technology company to build a framework and gathered data from the federal government that the counties could use. They charged a low price to start. Now they are going to more far-flung data sources and are able to charge more for subscriptions. *Finding revenue in unmet needs, February 2011
Hydraulic Institute* A classic case of updating a product while issuing it as: Hard copy CD Downloadable PDF Web subscription … while using resellers as well! And making money each step of the way. *Wringing more money from one publication, May 11
There is an endless variety of ways that an association can earn additional revenue. I encourage you to try to see what might be done.
THANK YOU Andrew S. Lang, CPA LangCPA Consulting, LLC firstname.lastname@example.org 301-983-3206
I have a unique risk-free approach to helping associations find additional revenue. I explain my approach in the services section of my website: www.langcpa.com/services/
FOR THE FULL PRESENTATION For the full 45 minute presentation about increasing net income through: - Cutting Costs - Improving Pricing & - Implementing new products and services Go to: www.LangCPA.com/addl income videowww.LangCPA.com/addl income video