The Brilliance of Anchor Pricing

Elon Musk showed the power of anchor pricing on Twitter.

Photo by Sara Kurfeß on Unsplash

The psychology of anchor pricing is brilliant.

More brands need to add this strategy to their sales pages. If you’re selling a digital course, you need to add it to your pricing structure. SaaS brands use anchor pricing all the time. Elon Musk showed the power of anchor pricing in the last week.

So what is anchor pricing?

Let’s dive in.

Anchor pricing influences a buyer’s decision

Let’s look at Figma’s pricing as an example of anchor pricing (also known as decoy pricing).

Anchor pricing influences buyers by establishing a desirable price point.

For instance, Figma creates the illusion that $12 per month is a great deal because $45 is the anchor. The buyer feels they are getting a good price when they compare the difference between $45 and $12.

It’s like telling yourself that buying a brand new $50,000 car isn’t so bad when you compare it to a $100,000 Tesla.