Ever looked at a price tag and thought, "Ouch, that's steep!" only for the next price you see to feel like a total bargain, even if it's still a fair bit of cash? That's often not an accident; it's a clever bit of psychology at play!

💡This week’s 80/20 rule - Harness the anchoring effect in your pricing.

In other words, the first price a customer sees powerfully influences their perception of all other prices. Let’s break down what this "Anchoring Effect" is and how you can use it to make your core offers irresistible.

🧠 When customers see a higher price first, it sets a "mental anchor."

Any subsequent, lower prices feel more reasonable, or even like a fantastic deal, by comparison.

Think about it: if a jeweler first shows you an engagement ring for $18,000, that number sticks in your head. If they then present a beautiful ring for $15,000, it suddenly seems much more attainable, right?

That $18,000 was the anchor. Our brains love shortcuts, and instead of analyzing every option from scratch, we tend to latch onto that first piece of information and use it as a reference point.

This doesn't mean the anchor has to be wildly inflated or unrealistic – if it's too far out, it can backfire and make customers distrustful. But a strategically placed higher-priced option can make your main offerings look like the smart, value-packed choice. It’s about guiding perception.

For businesses, this means the first price a customer encounters for a product or service sets the stage for how they perceive the value of everything else you offer.

Plenty of successful companies use price anchoring to their advantage. You’ve probably seen it without even realizing it!

💎 Apple – When Apple launches new iPhones, they often showcase the high-end "Pro" models with all the bells and whistles and a premium price tag. This makes the standard iPhone models, or even slightly older versions, seem more affordable and a great deal by comparison.

☕ Starbucks – Ever notice how the "Venti" (large) coffee price makes the "Grande" (medium) seem like a pretty reasonable step up? That Venti is anchoring your perception of value for the Grande.

💻 Software Companies – Many software companies (like HubSpot or Convert) offer tiered plans like "Basic," "Professional," and "Enterprise." The "Enterprise" plan, with its comprehensive features and higher price, acts as an anchor. This makes the "Professional" or mid-tier plan look like excellent value for most businesses.

🛍️ Retail Stores – The classic "strikethrough price" (e.g., "Was $100, Now $70") is a perfect example. The original $100 price is the anchor, making the $70 sale price feel like a significant saving.

These businesses understand that the first number shown frames the customer's mindset, making their target products or plans appear more attractive.

Ready to make anchoring work for you? It’s simpler than you think, whether you sell services or products.

Introduce Tiered Packages: Create "Good, Better, Best" options for your services. For example, a web designer might offer:

Basic Package: (e.g. 3-page website)

Pro Package: (e.g. 5-page website, SEO optimization, blog setup)

Premium Package: (e.g. Pro Package + e-commerce integration, ongoing support)

Anchor High: Try presenting your most comprehensive or "Premium" package first, or at least make it very prominent. Even if few clients choose it, its higher price makes your "Pro" or "Standard" package (often your target seller) seem like a fantastic deal.

Justify the Value: Ensure your high-anchor package offers genuinely superior features or benefits to be credible. Clearly outline what makes it "premium."

Use Strikethrough Pricing: For sales or special offers, clearly show the original price crossed out next to the sale price e.g. Was $99, now $69. The original price is your anchor.

Offer Tiered Product Versions: If you sell products with different feature sets (like a basic gadget vs. a pro version), display the higher-priced "pro" version prominently. This can make the standard version seem more affordable.

Strategic Bundling: Create product bundles where the combined price is attractive compared to buying items separately. The perceived total value of individual items acts as an anchor. For example, bundle a camera, lens, and bag for a price that seems like a deal compared to their individual costs.

Highlight the "Best Value": Similar to service businesses, if you have tiered products, visually guide customers to the option you want to promote, often the middle one, by labelling it "Most Popular" or "Best Value."

No matter your business, the key is to consciously decide on your anchor. What's the first price or most premium option you want customers to see to frame their perception of your other offers? Make sure it's visible and makes your core offerings look even better!

To recap, here’s how to make the Anchoring Effect work for your pricing:

1️⃣ Identify Your Core Offer: What’s the product or service package you ideally want most customers to choose? This is what you want to make look like the best deal.

2️⃣ Create a High Anchor: Introduce a more premium-priced option or show an original higher price first. This doesn't have to be your biggest seller; its main job is to make your core offer seem more reasonable.

3️⃣ Present the Anchor Prominently: Make sure customers see the higher anchor price clearly before or alongside the price of your core offer.

4️⃣ Justify All Tiers: Ensure each price point, especially your high anchor, has clear, credible value associated with it. Customers need to see why it’s priced that way.

5️⃣ Guide the Eye: Use design cues like "Most Popular" to gently nudge customers toward your preferred option after the anchor has done its work.

For this week’s website review, let’s look at Verve Coffee Roasters. Verve Coffee Roasters is a specialty coffee company based in Santa Cruz, CA, founded in 2007. They source and roast unique coffees through direct trade, operating cafes in California and Japan, and maintain a wholesale network, emphasizing quality from Farmlevel to Streetlevel.

💡 The Good:

Mobile Responsiveness: Features like a "Skip to content" link and an "Open menu" button suggest a design optimized for a good mobile user experience.

Product Discovery: Effective categorization of coffees (Blends, Single Origins, etc.) and the use of tags like "New Arrival," and "Subscriptions," help users navigate the product selection.

Interactive Quiz: Increases time on site while showcasing their expertise in matching customers with the right coffee. This builds authority and credibility, which can improve search rankings and boost their online presence.

🔧 Suggestions:

Button & Badge Styling Consistency: Standardizing the visual weight and style of all primary call to action buttons can improve the user experience. Increasing color contrast on badges that highlight key messages, such as “Most Popular,” can also help them stand out more effectively.

Homepage Product Descriptions: Providing more detailed and compelling descriptions directly on the homepage for "best sellers" or "staff picks" could further entice users.

Have a website you want reviewed?

Reply and let us know—we’d love to take a look!

Price Anchoring Explanation

Price Anchoring Strategy: How It Shapes Customer Perception

5 Psychological Pricing Tactics That Attract Customers

Unlock growth with behavioral pricing

How to use psychological anchoring in your pricing strategy

See you next time for another simple, high-impact strategy!

The LOGO.com Editorial Team