Money Minute: Price Anchor

Summary

• If you have two things you sell, add a third option that's way more expensive than the other two. This new item should be slightly different from your existing offerings.
• Make the new, expensive item stand out. Customers will notice that it's different and costs much more than your other products.
• About one out of 10 people will choose the super expensive option.
• Because of the expensive option, more people will be inclined to buy the more expensive choice of your original two items.

Video

How To Take Action

I would suggest implementing a strategy to boost your sales by introducing a third option that's significantly more expensive than your current offerings. This high-ticket item should be somewhat different to stand out. It doesn’t require a lot of resources—just creativity and understanding of what could add premium value.

A simple way to start is by upgrading one of your existing products or services. Maybe it includes personalized support, a faster delivery option, or additional features that elevate its status. This gives customers a reason to see it as worth more.

The psychology here is powerful: when customers see a premium product, it makes the more expensive of your original two options seem like better value for money. So, people are more likely to choose it over the cheapest one.

About one in ten customers might even go for the new, super expensive option. Clearly display and market these differences, so customers clearly see why they should pay more.

Look at it this way: you’re giving customers choices that guide them to spend more without feeling pressured. It’s a low-cost strategy that can significantly boost your revenue. Just think about what small tweaks you can make today and start selling a new experience tomorrow!

Full Transcript

here's money in under a minute if you have two things that you sell add a third thing that's way more expensive than your most expensive thing and make it just a little bit different so that then people are like wow these two are almost the same thing but this one's like onet the price of this one and here's the crazy thing one out of 10 people will just buy the super expensive thing and the second thing is that now way more people will buy your more expensive of your original two options more money in under a minute