Anchoring

Anchoring is the bias where the first piece of information a person sees has an outsized effect on later judgments. In pricing and sales, the first number becomes the reference point for everything after it. For example, a $299 plan looks expensive on its own but cheap next to a $999 plan.

How it works

People judge options against a reference point, not in absolute terms. Once an anchor is set, it is hard to ignore, even for people who know about the bias. This is why real estate agents show an overpriced house first, SaaS pricing pages lead with the enterprise plan, and crossed-out “original” prices still work. Anchors also shape expectations about features, timelines, and value.

How to do it

Show the highest-priced plan first on the pricing page (leftmost or topmost).
State the full value before the price. For example: “Includes $4,700 of tools and training. Your price: $497.”
Use crossed-out prices only when they are real previous prices or real competitor prices.
In sales calls, present the largest package first, then move down to smaller ones.
Anchor on outcomes too. Lead with your strongest verified customer result so later claims are judged against it.

What to measure

Average order value (AOV): compare average purchase price before and after changing the anchor.
Plan mix: track the share of buyers choosing each tier, and test whether a new anchor shifts it.
Price resistance: survey prospects or track discount requests with and without the anchor.

Best practices

Offer a premium option even if few people buy it. Its job is to make the middle tier look reasonable.
List each included component with its price before showing the bundle price.
Use round numbers for the anchor and precise numbers for the actual price (for example, “$5,000 value, yours for $1,247”).

Common pitfalls

Setting the anchor so high that it is not believable (“$50,000 value for $29”).
Setting no anchor, which lets the buyer’s budget or a competitor’s price become the reference.
Using fake “original” prices or inflated value totals. This can break FTC rules and destroys trust.