So your prices are expensive?
Or are they affordable?
Maybe. Maybe not.
It’s depends on perspective.
It’s all relative to the perspective of your buyer.
Buyers are fickle creatures.
And as you may have guessed, they are notorious for being a bit irrational and unpredictable.
I know because I am one. And so are you!
But in all of that crazy, buying behavior and unpredictability, there are some documented patterns.
I know, it’s a bit weird but it’s true.
(Want a little more on that? Check it out here and here).
Frame of Reference
When we shop, we all have our own frame of reference. We don’t always admit it but we do.
We instinctively compare the products and services of one company to the products and services of another.
Sometimes we do a great job at it…and actually compare things that are similar. Comparing apples to apples.
Other times, we kinda suck at it and compare things that have absolutely nothing to do with each other. Comparing apples to oranges.
But hold on a second, comparing apples to oranges? That is what you DON’T want your prospective customers and clients to do.
So you’ve got to fix that with…a pricing anchor.
What The Heck Is A Pricing Anchor?
First off…I’m sure you’re wondering, “what the heck is a pricing anchor”?
The pricing anchor and the anchoring effect is when customers anchor or compare everything based on your highest-priced offering.
Sounds quite simple right? Sure it does but I’m going to beat that as simple as it sounds, you aren’t doing it.
You’re probably just floating up a price on your website, if you have pricing there at all, and expecting your tribe to know how valuable your price point is…or isn’t.
Just in case you think I’m just bs’ing you… here’s a real world pricing anchor for you.
Have you noticed when you go into a department store or when you’ve done a bit of window shopping, one of two things are on display.
(1) The most luxurious, gorgeously highest priced item is on display or (2) the most luxurious and deeply discounted item is on display.
Now that I’ve brought this to your attention, you can be sure that this is not by accident at all. The department store is giving you a pricing anchor before you’ve even had a chance to walk into the store.
They are framing your perception of what you can expect from them. They are providing you with a pricing anchor regarding value and price as soon as humanly possible.
Anchors’ Away, Matey!
So what’s up with your pricing anchor? If you don’t have one, I’d suggest that you should probably give it some thought. Just a little bit.
Have questions or comments? Let me hear it in the comments below.
Want to learn more about pricing and packaging your products and services for profit? Join me in The Blueprint: Your Guide To Profitable Pricing & Packaging.