Up next, we have price anchoring. So price anchoring is a great mental model that has lots of different strengths to it. I really recommend you dive deeper into this one and explore it in more depth.
For now, we’re going to just cover the basics of price anchoring. In price anchoring, as the name suggests, you’re going to anchor the price of your product to the price of something that they already know. A price point alone doesn’t tell people an awful lot, so they have to use different contexts and cues to understand if that price is worthwhile. We see price anchoring all the time in supermarkets where brands will say that their product is X times cheaper than the leading competitor.
Price anchoring is also commonly used in SaaS subscriptions, where they might compare the cost of a subscription to the cost of a cup of coffee. People buy coffee day in, day out, so if we’re seeing a subscription compared to that, we’re going to think it’s pretty good value for money.
There is all kinds of ways that you can use price anchoring. You can play around with this in your headlines, in your sales landing pages, email copy, pricing pages, and CTA buttons just to name a few.