Price anchoring is a sales tactic that taps into buyers’ psyches. It can be very helpful during price negotiations.

“Anchoring is all about setting a point of reference that makes everything else seem more reasonable by comparison,” explains Adam I. Stamper.

It taps into what is known as anchoring bias. It’s the instinctive habit of using the first number encountered as a reference point when making decisions, negotiating or evaluating a purchase.

Basically, price anchoring is when a higher price is shown next to a lower price. The higher price becomes the "anchor," making the lower price seem more attractive.

Price anchoring helps shape how consumers perceive value. It is often employed during product launches, promotional events or when offering various pricing tiers.

Sellers can take advantage of this technique in an ethical way, as long as the low price truly reflects their solution’s value. As Marco Basile explains, sellers should simply contrast a true discount or lower price with a higher cost.

“It can become unethical if the anchor is artificially inflated to manipulate customers into feeling they are getting a better deal than they are.”

So, price anchoring should primarily be used when you’d like to offer a discount or other special offer to influence a purchase. Or, when comparing your solution to a higher-​priced competitor.

Why does price anchoring work?

It can be successful because it leverages psychology.

Research indicates that price anchoring is effective due to the anchoring effect, a cognitive bias where people place significant importance on the first piece of information they receive.

Specifically, regarding pricing, customers often base their decisions on the first price they see, influencing their perception of value. This makes the lower-​priced option appear more reasonable.

How to use it in B2B sales

Price continues to be a very important factor in buyers’ decision-​making processes. SalesFuel found that for nearly 30% of sellers, a too-​high price is one of the most common objections they face.

Price anchoring works well in B2B environments because buyers typically evaluate multiple offers. The first price introduced during negotiations establishes the reference point, shaping how all other offers are perceived.

Beginning the negotiation process with a higher-​price solution is a suggested strategy. Again, ensure that your offer is truly worth the higher cost and explain that value to the prospect.

This could be a package offer, which includes “extras” to justify the higher price. Position it as a premium option, highlighting unique benefits and advantages.

Then, introduce other tiers of pricing.

“Having multiple packages (e.g., basic, standard and premium) allows the buyer to anchor against the higher,” Stamper writes.

Start by showcasing the highest-​priced option, then frame the next tier as the “smart choice.” This tier delivers key benefits at a lower cost, making it seem like a practical and accessible option that doesn't compromise on essential features.

Sellers can also take the opportunity to compare a higher-​priced item that the prospect may be considering. Emphasize the contrasts in both pricing and benefits, such as customer support. Be sure to personalize the specific benefits you offer that directly impact the prospect.

Moving forward with integrity

Price anchoring is a powerful tool when used thoughtfully and ethically. By understanding the psychology behind it, you can shape how potential customers perceive your pricing.

When applied correctly, it can highlight the value of your offering and make lower-​priced options more appealing. However, it’s important to be transparent. The key is offering real value, not manipulating numbers to deceive customers.

In B2B sales, especially, price anchoring can guide buyers through the decision-​making process, helping them see the worth of your solution. By strategically positioning your options, you can influence their choice without compromising integrity.

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