Price Anchoring

There is an interesting concept in Neuro-Linguistic Programming (NLP) called anchoring. In short, people can become attached to a certain concept and retain that bias when making future decisions. This has huge implications for your offerings and pricing. And should be taken seriously when looking to successfully compete in your industry.

When a potential buyer becomes anchored to a price, breaking their preconceived price notions is difficult. Which is why you must create your own anchor. While this is easier said than done, it is possible.

The initial rule of thumb is the buyer will generally not choose the cheapest or most expensive offering. But rather they'll choose the middle ground. The safe bet.

Knowing that website users read in an F-Shape pattern. That buyers cannot easily compare your unique offerings to other companies. And that anyone can be swayed of previous biases. A pricing table is a great marketing strategy. But they must be constructed properly to be effective:

  • Highlight the differences not the similarities in offerings
  • List highest to lowest prices from left to right or top to bottom
  • Create a middle-of-the-road, best deal offering
  • The cheapest offering should be decent but not overly attractive

This is an example of a pricing table used by Basecamp to illustrate the prices and benefits of each package: