12d ago (edited) in Questions and Support 🫶
What is Price Anchoring? Why should we use it?
Many business have a rule of 3 when it comes to their pricing. The reason is because people tend to choose the middle option when buying something, UNLESS the middle is closer to the top than the bottom.
Price anchoring is when you make the "highest tier" option for your pricing fairly high. A "premium product" for example.
Movie Theatres do this with popcorn. $3 small, $5.50 medium, $6.00 Large. (This is an example, not representative of all theaters obviously.) People will choose the large one most of the time.
Pressure washing companies do it too. $175 standard washing, $275 Middle Basic, $495 Premium.
Most people will buy the middle tier in this model.
Your model depends on your business and who you are selling to.
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What is Price Anchoring? Why should we use it?
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