What a Deal: 4 Pricing Strategy Examples

What Makes Consumers Buy Faster & Value Your Brand More? Answer: Price Anchoring

These four pricing strategy examples explore one valuable tool in the pricing toolbox: price anchoring. In their book Dollars and Sense, Dan Ariely and Jeff Kreisler write:

“Which would you buy? A dress shirt priced at $60, or the very same dress shirt, priced at $100, but ‘On Sale! 40% off! Only $60!’?”

When consumers purchase a single product, they are making several choices (whether consciously or not). The most basic choice is to buy or not to buy. Once they move past that binary, the choice becomes which one to buy—and when to buy it. The selection criteria can include:

• Brands, i.e., Name brand or private label
• Product options, i.e., size, color, features, performance claims
• Channel, i.e., online or in-store
• Price, i.e., good, better or best pricing

In this article, we’ll demonstrate how price anchoring creates a sense of urgency and increases the perceived value of products consumers buy every day.