How can you use the anchoring effect to your advantage in sales or marketing?

- ?? Establish a high anchor to set expectations and standards for customers. - ?? Display the original or suggested price next to the discounted or current price to highlight savings. - ?? Show the highest or most premium option first to make lower or standard options seem more affordable. - ?? By setting a high anchor, you increase the perceived value and attractiveness of your offerings. - ?? This strategy helps in creating a contrast that emphasizes the benefits and savings, driving customer decisions in your favor.

- Do have good product to sell with reasonable competitive price to sustain your business continuity. - Understand the difference in price variance and how that design can work best for your audience. - Compare old/current price and new (discounted) price. Even though this style has been polluted by many vendors in business today. So you need to consider your integrity while adopting this approach. - Share testimonials of customers that reviewed the price difference and appreciated them.

Leveraging the anchoring effect in sales or marketing involves strategically presenting the initial price or information to influence subsequent decisions. Begin with a higher anchor to frame the perceived value, making subsequent offers appear more reasonable. For instance, introduce a premium package first before presenting a standard option.

Some thoughts on anchoring: - don't go overboard; establish an anchor you can reasonably defend and that doesn't make you look like a bully - the devil's in the details; precise numbers like $138.270 sound more thought-through than $150.000 - know your why; what purpose does this anchor serve in your negotiation, beyond cash-flow - know your true value; people who anchor well have a clear sense of the value they're offering and feel their intrinsic worth - be ready to do a b.o.e. calculation; if your counterpart asks how did you get to exactly $138.270, be able to run them through a back-of-the-envelope calculation that shows your reasoning & reasonableness.

An interesting approach to increase the perceived value of a product and influence customer behavior during sales conversations. By establishing this high anchor, it can also serve as a way to set an "up-front contract" with customers, allowing them to form realistic expectations for the product, potentially making it easier to close a sale.

See above (mentioned in previous part): - the devil's in the details; precise numbers like $138.270 sound more thought-through than $150.000 - be ready to do a b.o.e. calculation; if your counterpart asks how did you get to exactly $138.270, be able to run them through a back-of-the-envelope calculation that shows your reasoning & reasonableness.

If you give people one anchor, you're priming them to make a yes-no decision. Not ideal at this stage of a negotiation. (Note: anchoring usually happens at a fairly early stage.) At this stage, A-or-B is often your better option. It requires more mental energy for your counterpart to think about A-or-B (or even A-or-B-or-C) and THEN consider "yes or no." And ideally, they don't even get to "yes-or-no." :-)

Anchors are not just numbers. The value of something can be its price in dollars, but in most deals your counterpart will look at other things, too: completion deadlines, speed of production, risks, cash-flow, convenience, status & PR effects etc. The most powerful anchors are psychological. Imagine this: Interpol has caught an art thief; they offer him and his team immunity in exchange for a black-ops theft from a terrorist. Agent Drummond appeals to the thief's sense of right and wrong: "It's about saving lives." The art thief laughs. Next, agent Filmore says: "Go ahead, say no to the biggest scam you'll ever pull. The stuff of legends. We have other options." The art thief looks interested. My point: Think beyond money.