If you're not using price anchoring to make more sales, then you need to implement this simple and effective tactic today!
It goes without saying that most customers want the best deal on the products they buy. We all want to save money wherever we can - and regularly make use of offers, discounts and price drops. Using some of these aspects in your business is a great way to increase sales.
You might want to consider using an anchoring price to make potential customers more likely to buy, due to feeling that they're getting a better deal on the item concerned - whether that's a physical product or a service.
So what is price anchoring?
Price anchoring is a simple selling technique and pricing strategy, in which a business will show one price - but then actually offer the item for sale at a lower price still. Larger retail stores do this all of the time, showing the original or RRP price and then the final 'Sale' price which you can actually buy the item for.
In respect of price anchoring, the customer focuses on the first price - as a reference point. Surely many people already bought the item or service at that price? Then, seeing the lower sale price - regards that item as being a bargain and snaps it up whilst it's still available!
Price anchoring can be effective in any business that sells items or services, so instead of just offering a standard price up front, try price anchoring the next time you're pricing your products - to make customers think they're getting a better deal (and hence increasing those sales).
Price anchoring can also help move customers along in the buying process for higher-priced items. Especially if they think they're getting a mega discount on something that was initially a high-value item, which is now more within their price range.
Price anchoring is an easy and effective tactic that can be implemented within your business strategy. Although on the surface, it might not seem the nicest tactic to use, it's commonly used across the board and is an effective way to get customers across the finish line and to the checkout!
by Andy Sep 2022