Pricing an Outsourced Association Management Contract

Each Association is different and has varying expectations and aims. The AMC is faced with the prospect of quoting on a long term contract with very little information – often even the best chairmen have the most rudimentary of data on volumes etc. Ideally the client is looking for a fixed price for easy budgeting but the AMC is likely to price any unknown quantities on the high side.

Experienced and creative AMC’s can overcome this natural conflict by structuring an open business relationship which build trust and understanding towards the day when fixed cost pricing becomes feasible for both parties. You should look for any pricing proposal to recognise this.

Most AMC’s will now offer a contract based on a combination of fixed and variable fees, usually about 50/50 split.