You're at a nice restaurant, looking over the wine list. At the top, there's a £300 bottle - so fancy it might as well come with a handwritten note from the winemaker. You smile and keep scrolling.
Further down, you see a £75 bottle. Still expensive, but next to that £300 option? It feels like a bargain. You order it, thinking you've made a smart choice.
But things are not really as they seem…
👩🏫 Class in Session
Let’s get back to that £300 bottle of wine.
It was there to anchor your perception of value. This is the Anchoring Effect in action, a cognitive bias that makes the first piece of information we see - like that jaw-dropping £300 - the benchmark for everything else.
Steve Jobs knew this all too well. Remember when he introduced the iPad? He floated a $999 price first, letting it sink in.
Then, with a dramatic pause, he revealed the actual price - $499. The crowd went wild. Why? Because compared to $999, $499 felt like a bargain, even though it was still a premium price.
When it comes to setting prices, designing offers, or even framing your value proposition, the Anchoring Effect can be a powerful tool. Here are a few ways to use it to your advantage:
Frame Your Offers with Context
Context is everything. Present different pricing or service tiers clearly so customers can compare based on value, not pressure. Use side-by-side comparisons that highlight key benefits rather than just big price differences.
Create a Perceived Value Ladder
Structure your pricing so that each tier builds on the last. Start with a high anchor to establish value, then introduce other tiers that offer more benefits at different price points. This not only drives conversions but also makes upselling easier.
Anchor Ethically to Smash Objections
Anchoring should help customers understand the real value of what they’re getting. Instead of just showing a higher price, provide context: why is this offer priced the way it is? What do customers get at different tiers? If they understand the benefits, they’re empowered to make the best choice for them.
Be Bold with Your Communication
Don’t be afraid to own your pricing. Show your audience the quality, the results, and the transformation they can expect. When you confidently articulate the value, it cements that first impression and sets the right benchmark.
The first price, value, or message people see defines how they perceive everything that follows. A great rule of thumb? If a customer still feels good about their choice after purchasing, you’ve done it right. Ethical anchoring means presenting options in a way that makes people feel empowered, not pressured.
So, take a moment to audit your current offers.
Are you setting the right anchor? Is there a bold option you can introduce to elevate the rest of your products or services?
It’s time to rethink how you frame your value, and let the power of anchoring work for you. This is just one example of the many things I talk in my upcoming book, The Customer-Driven Marketing Handbook.
Published with Kogan Pages, this is the handbook I wish I had for my students when we first started the school.
I am beyond excited to share my first ever marketing book with you, right after, well, another very important delivery of a baby girl - if you missed the announcement on Instagram, you may want to catch up.
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