Price Anchoring - Productivity Nugget #180

anchor Understand how price anchoring works in the consumer mind.

I've been obsessed with the psychology of economics lately. How we make decisions and why.

We don't make decisions logically, even if we want to justify that we do.

All the science points to emotional decision making, which makes it very easy to influence consumers decision making process.

Using Price Anchoring To Get Homes Sold

I basically talked about this in my real estate coaching video about Eye Level Marketing. Price Anchoring takes it to the next level.

Watch this real estate coaching video, where I share how High End Retailers actually make their money and use price anchoring to sell their products. I then share how you can use this understanding to get homes sold.

Another Example

I also heard a story about a company trying to market a breadmaker. It was the first breadmaker to the market for the home. It failed miserably.

Why?

Because no one had a breadmaker in there home yet. They didn't know if the cost the company was asking was fair or not. There was no anchor to determine value.

So what did this company do?

They released another breadmaker for the home. This one bigger and more expensive. It sat right on the shelf next to their other product. Thus creating an anchor and some perception of value for the consumer.