Price Anchoring
Displaying a higher reference price to make the selling price appear more attractive.
Displaying a higher reference price to make the selling price appear more attractive.
Why It Matters
Anchoring is one of the strongest 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 draws the eye—red strikethrough color increases attention
Common Mistakes to Avoid
Frequently asked questions
Put it to work
Related Terms
ONE FREE AUDIT
Run your free Shopify audit.
50+ factors. Real fixes. Same framework we run for $10M brands.
Free · No credit card required
You'll talk directly to the people doing the work.
7.7x blended return at scale — seven figures attributed, across five straight quarters · Modern Prairie · Apr 2025–Jun 2026 Read the Modern Prairie case study
