Definition
The anchor price is the first price that a customer sees when they land on a website or landing page. This sets a psychological benchmark that all other prices will be compared against and is why it is good practice to always display your highest price first.
Why Anchor Price Matters
Displaying the anchor price strategically can influence purchasing decisions. When the highest price is shown first, customers may perceive other options as better value, making mid-range or lower-priced products more attractive. This is an effect of anchoring bias, where the initial piece of information heavily influences decisions.
Example of Anchor Pricing
Here is a good example from the survey software company Temper.io. The most expensive plan is on the left and as in the west we read from left to right this will be the plan that most visitors will see first. Most pricing pages on websites go for the traditional approach of showing the low to high from left to right, perhaps because it is the norm and people follow the crowd (see Herd instinct). Also see behavioural economics.
Conclusion
The anchor price technique is a powerful tool. Businesses can influence customer choices and enhance the value of their offerings. As a best practice, always consider how displaying the highest price first may help frame other options as better value.
Resources:
Conversion marketing – Glossary of Conversion Marketing.
Over 300 tools reviewed – Digital Marketing Toolbox.
