Price Anchoring
Displaying a higher reference price to make the selling price appear more attractive.
1 min readLast updated Apr 2026
Quick Reference
CategoryPricing & Promotions
Related Terms1
Displaying a higher reference price to make the selling price appear more attractive.
Why It Matters
Anchoring is one of the most powerful cognitive biases in pricing. When customers see '$150 $99,' the $150 becomes the reference point making $99 feel like a deal. Proper anchoring can increase conversion 20-40% and justify premium pricing.
Practical Example
Scenario
A supplements brand shows 'Compare at $89' next to their $59 product (never actually sold at $89).
Calculation
Without anchor: 2.1% conversion, $59 × 1000 visitors × 2.1% = $1,239. With anchor: 2.8% conversion = $1,652Result
Price anchoring increases revenue 33% without changing the actual price. The anchor establishes 'fair market value' reference.
Pro Tips
- 1Your anchor must be believable—too high and it backfires (feels deceptive)
- 2Show competitor prices as anchors when legitimately higher
- 3Use 'if purchased separately' anchoring for bundles
- 4Strikethrough formatting is powerful—red strikethrough color increases attention
Common Mistakes to Avoid
Using inflated 'compare at' prices never actually charged (FTC compliance issue)
Anchor too close to selling price (needs 25%+ difference to be effective)
Not explaining the anchor—'Retail $150' vs just '$150' crossed out