Product Costing and Performance Analysis: A Toolkit for Analyzing Associations' Service Offerings

Guidelines for associations to achieve long-term financial sustainability

This guide helps associations determine the cost structure of their products and services, and understand the implications of their current policies on long-term financial sustainability.

Product costing is a crucial exercise for associations, as they try to understand their product offerings and their positioning in the market. It helps managers to identify key service lines, examine their association’s unique products and allocate costs in order to better understand the financial viability of the current pricing structure. Using a cost allocation approach, the guide helps associations to:

  • Analyze and understand product costs and sales;
  • Identify products that contribute the most to their bottom line;
  • Identify the need for additional subsidies to support services that are not financially viable in the short term, but are a priority for the association;
  • Understand the dynamics behind expense and revenue streams;
  • Develop financial projections that form the basis of their financial sustainability strategy.

Finally, the guide helps associations develop demand-driven, market-based products that are attractive to members and have the potential to become financially sustainable.