Conversion
Price Anchoring
Price anchoring is a pricing strategy that presents a higher-priced option first to establish a reference point that makes subsequent prices seem more reasonable by comparison. It leverages the cognitive bias where people rely heavily on the first piece of information they receive.
Examples
A SaaS pricing page shows the Enterprise plan at $299/month first, making the Professional plan at $99/month feel like a much more affordable and reasonable choice.
Best Practices
Place your anchor price prominently before the target option, ensure the anchor represents genuine value rather than an artificial inflated price, and test different anchor configurations.