Image Source: Comparative Package PricingĪnother price anchoring structure you might have run into is comparative package pricing - often in the form of a psychological pricing methodology called bracketing. Here's an example of what that might look like: Strike-through retail pricing is one of the most common, easily recognizable forms of price anchoring - and its nature is pretty obviously reflected in its name.īusinesses that employ this strategy advertise a higher price in a product description, cross that price out, and place a discounted price underneath. Price Anchoring Examples Strike-Through Retail Pricing You've provided them with an anchor - a benchmark for understanding the value of your product. By placing that initial display price on your product page, you're creating the impression that the shirt is worth $5.00 more than you're selling it for - even though your ideal price point is just $19.99.īy setting what is essentially a decoy price, you're playing on consumers' inherent tendency to use the first piece of information they see as a reference point for further decision-making. Here, that might mean including an initial price of $24.99 on your pricing page, crossing that price out, and displaying a "discounted" price of $19.99. If you wanted to spice things up a bit and generate some more intrigue around your new shirt, you might consider implementing a price anchoring strategy. What your prospects see is exactly what they'll get When you price your product at flatly $19.99 - without any additional flair or context - you create the impression that your product is worth exactly what you've priced it at. You drum up some buyer enthusiasm, but you think you can do better. Initially, you set the price for your product at $19.99. ![]() You've recently designed a cool new t-shirt that's garnering interest from some consumers. Let's say you operate an ecommerce apparel retailer. In practice, price anchoring might look something like this. In the context of pricing, many businesses will set a visible initial price for a product but make a point of showing that it's now being sold at a discount. Price anchoring is a pricing strategy that plays on buyers' inherent tendency to rely heavily on a piece of initial information to guide subsequent decisions.
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