What’s your treatment paradigm?

Some associations treat their supplier members like lepers, while others consider their associate members to be potential strategic partners. Where does your association sit in this dichotomy? The paradigm for some associations is that of continually figuring out how to squeeze the last possible dime out of their suppliers, while others instead seek long-term partnership.

In meetings industry publications, you’ll read about how to generate more profit from your meetings, mostly by selling more exposure opportunities to your supplier members. This, by the way, is a good thing, but only if you keep the two-way value proposition in mind.

TWO-WAY VALUE.

A topic I rarely see in the meetings industry publications is that of delivering value to your associate members. Sure, there is a passing quotation here and there about driving value for sponsors. But, how do you do it?

When considering the value your sponsors seek, keep in mind the No. 1 rule: Understand that their greatest desire is to increase their sales volume. Why else would they be there? To build a better industry? Okay, if you say so. But please get real: While every supplier would like to see higher levels of professionalism and effectiveness in the supply chain and in the industry in general, their No. 1 desire is to increase sales.

WHAT CAN ASSOCIATIONS DO DIFFERENTLY?

If you want your suppliers willingly to deliver their cash to your association coffers, you must treat them like strategic partners and not lepers. How would it look in your mind’s eye if your paid staff and volunteer leaders treated your suppliers with the respect that they deserve?

  • Give them a seat at the table: One board member position should always be reserved for an associate member.
  • Conduct supplier focus groups with the intention only to better understand the specific value line items that they desire, as opposed to squeezing them for more money.
  • Offer year-long strategic sponsorship opportunities, perhaps at various investment levels, so all suppliers have the opportunity to play.
  • Increase the functionary member attendance of your conference/expo. I’ll never forget traveling to the Pacific Northwest to speak at a meetings industry association chapter meeting. I could not help feeling sorry for the suppliers in attendance: At this particular meeting, there were four planner members and 25 suppliers. What is wrong with this picture? Suppliers want to network with people who can buy from them, not their competitors.
  • Keep your suppliers, association members or not, informed. I’m intimately familiar with an association that recently demonstrated by deed, not merely word, that suppliers were on the bottom rung of the ladder of importance. This association’s convention was held in a large-city market, and as such they managed to strike an incredible deal on room rates for the convention hotel. They were unable, however, to secure a large enough room block to accommodate everyone. This association informed their members, but not their suppliers, when the room reservations opened. The result? Suppliers had to seek more expensive rooms at other nearby hotels if they wanted to exhibit at the convention.

WHY DOES IT MATTER?

Business is about results, not excuses. If your association wants suppliers and associate members to play the sponsor game at higher levels — and who doesn’t? — you had better play the game to win. Winning means developing long-term strategic sponsor relationships. The better in business your suppliers do, the more money they have to give your association in sponsorship dollars. And the way to help them do better is to pay attention to their needs and treat them with the respect they deserve.

In the final analysis, functionary members of an association or society have to pay, one way or another. Members either must pay the real cost, without sponsor subsidies, or pay in actions by creating the correct environment for sponsor participation.

The choice is on the table.

This article was originally published on Rigsbee Research, and can be accessed here.

Chief Member Evangelist at Rigsbee Research | Website

Ed Rigsbee is the Chief Member Evangelist at Rigsbee Research and the Executive Director of the Cigar PEG, Inc. He has authored five books and over 2,000 articles on business and organizational collaborations. He travels internationally delivering keynote presentations and multi-day workshops on member recruitment and strategic alliance development to Corporate and non-profit audiences. Rigsbee is frequently engaged by membership organizations to facilitate various boards of director meetings and his proprietary Member ROI Valuation Process.

Ed Rigsbee is the Chief Member Evangelist at Rigsbee Research and the Executive Director of the Cigar PEG, Inc. He has authored five books and over 2,000 articles on business and organizational collaborations. He travels internationally delivering keynote presentations and multi-day workshops on member recruitment and strategic alliance development to Corporate and non-profit audiences. Rigsbee is frequently engaged by membership organizations to facilitate various boards of director meetings and his proprietary Member ROI Valuation Process.

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