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Pricing Strategies in the Solidarity Economy

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Setting prices isnt just a financial decision: it’s a values decision!

In the social solidarity economy (SSE), pricing strategies are typically designed to balance accessibility, fairness, and financial sustainability, while reinforcing community trust and collective responsibility. Below are several approaches commonly used by solidarity economy initiatives, cooperatives, and community enterprises.

1. Sliding Scale

How it works:
Participants choose their own price within an open range, based on their ability to pay.

Why it fits the SSE:

  • Promotes equity by letting individuals self-assess their means
  • Reduces financial barriers and invites broader participation
  • Relies on trust and transparency

Considerations:

  • Requires clear communication about what different contributions support
  • Works best in values-aligned, trust-based communities

2. Pay What You Value

How it works:
Offer several fixed price tiers (e.g. $25 / $50 / $100) and let people self-select the tier that aligns with their means and perceived value.

Why it fits the SSE:

  • Supports cross-subsidization (higher contributions fund lower-cost access)
  • Encourages community members with more resources to redistribute
  • Maintains affordability without means-testing

Considerations:

  • Needs thoughtful framing to avoid reinforcing hierarchies
  • Communicate that all contributions are valued equally in participation

3. Price + Bursary

How it works:
Set a standard price, with a bursary or scholarship option for your desired target audience or those who need financial support.

Why it fits the SSE:

  • Creates predictable baseline revenue
  • Offers an equity mechanism to reduce barriers
  • Allows targeted support for equity-deserving groups

Considerations:

  • Requires administrative capacity to manage bursary applications
  • Works best when funders can underwrite bursaries

4. Membership Model

How it works:
 Participants pay a one-time or recurring fee (monthly/annual) to access benefits or services.

Why it fits the SSE:

  • Fosters long-term commitment and shared ownership
  • Builds a reliable base of support
  • Aligns well with cooperative governance

Considerations:

  • Needs ongoing value delivery to retain members
  • Requires clear accountability and participation mechanisms

5. Cost-Plus Pricing

How it works:
 Set prices by calculating real costs and adding a modest, transparent margin.

Why it fits the SSE:

  • Builds trust through openness about costs
  • Ensures sustainability without profit-maximizing
  • Helps participants understand the true cost of services

Considerations:

  • Requires solid bookkeeping and cost tracking
  • May be less flexible for varied income levels

6. Pay-It-Forward Pool

How it works:
 Participants can contribute extra funds into a communal pool, which is then used to subsidize other participants (separate from their own fee).

Why it fits the SSE:

  • Encourages solidarity across cohorts or generations
  • Creates a sense of collective responsibility

Considerations:

  • Needs clarity about how funds are allocated
  • Requires good follow-through to maintain trust

Guiding Principles for Setting Prices in the SSE

  • Transparency:
    Be open about how prices are set and how funds are used!
  • Equity:
    Design pricing to reduce barriers for marginalized participants.
  • Solidarity:
    Encourage those with more means to support others’ access.
  • Sustainability:
    Balance affordability with financial viability to ensure longevity.