How to Uncover Your Offer's Real Worth Using the Power of Price Anchoring

This was supposed to be posted yesterday, Jay!

I know, I know, but here's the thing.

I woke up early... grabbed my delicious cup of coffee, and prepared to write this week's newsletter issue.

But then it hit me...

Why am I writing this?

Today's my birthday!

So, I decided to close my computer and enjoy a great day, celebrating with the family.

I hope you can forgive me...

But here we are on this beautiful Monday (I hope it's lovely wherever you are now)

And we're ready to talk marketing...

More specifically about...

The True Power of Anchoring Price in Your Marketing

Have you ever noticed how the first price you see for something shapes your perception of its value?

This is known as the anchoring effect, and it has an extraordinary and often irrational influence on our buying decisions.

The anchoring effect works like this...

When we see an initial number, price, or offer, our mind anchors to that piece of information.

It becomes the starting point that we judge all later information.

Even when we receive more details contradicting the anchor, we have a hard time ignoring its pull.

Marketers often use anchoring tactics in their promotions and offers.

Here are some common examples they often use:

• Start with a higher price first and then drop down to make a lower price seem like a better deal. This approach can work well to increase the perceived value of your offer. But be mindful that dropping from an outrageous initial price to get consumers will cross the line into manipulation.
• Present a "premium" offer alongside a more affordable option to make the cheaper choice appear more valuable by comparison.
• Use social proof, such as "Over 2 million sold!" to imply popularity and anchor a product as a bestseller in the prospect's mind. But these numbers need to be truthful.

Pro Tip: Be careful not to start with a price or offer too low, or you'll risk leaving money on the table or even turning away customers who would have paid more.

So How can you tap into the power of anchoring ethically?

1. Start on the higher end of the REASONABLE range for your product or offer. You can always come down but can't go up once you've anchored lower.
2. You should highlight your offer's value and benefits before showing your price. This approach avoids anchoring customers too low right off the bat.
3. Use premium offers, higher quantities, or even add (more) options as your initial anchors. Make your main offer seem very appealing in comparison to the other options.

Look... the anchoring effect is a powerful persuasion tool that should be used responsibly.

When you use it properly, it can significantly improve the success of your promotion.

And as ethical marketers, we need to remember NEVER to use it as a ploy to manipulate our audience.

Because your long-term success depends on establishing TRUST and providing real value to your tribe.

All right, that was all for this week's late issue (my apologies again)

Have a fantastic week!

Jay Simon

P.S. Listen... if any of this stuff sounds confusing at first and you're wondering, "How the hell do I Implement this for my offer?" You can always reach out to me, and I'd be happy to take a look inside your business and help you ethically use Price Anchoring to boost your conversions and make more money on your current offers.

#digitalmarketing #advertising