What is Anchor Pricing?
A product is never really “cheap” or “expensive”.
Yep. Value is relative.
And it’s almost always possible to influence the ‘perception’ of value by introducing an anchor.
Here are three ways to set an anchor if you are a consultant, an agency owner or sell a complex service:
1. Mention ROI
If a potential client will get a $10,000 return from working with you (in savings, efficiencies or additional revenue) and if your fees are $3,000 (for example) … Bring up the potential ROI.
The potential ROI will set an anchor and make your fees seem like a more attractive proposition relative to the benefit.
2. Mention COI
The COI is the Cost-Of-Inaction. Again, by talking about the losses likely to be incurred by NOT taking action, you can anchor your rates as an attractive proposition.
3. Other paths to the solution
While you don’t want to compare your rates to competitors (that’s a fight to the bottom), you can reference other ways that a potential client could get the same result, at a greater cost or with greater difficulty.
For example, if you are selling a course, you can anchor the course fees against the ‘exorbitant’ cost of hiring a consultant. If you are a consultant, anchor your rates against the ‘exorbitant’ costs of mistakes incurred when a client tries to do the work on their own.