What Is An Anchor Price?

What Is An Anchor Price?

1 Answer

  1. Anchor price is a price to which customers may compare the other price while making a purchase.
    For example, if a product is at sale at $100 from a previous price of $120, then $120 is known as the anchor price.
    This strategy is referred to as price anchoring.
    Price anchoring can work in two ways. They are:
    1. High price anchor: You price a slightly premium product higher than the price of actual product that you want your consumers to buy.
    2. Low price anchor: Pricing your product higher than what a basic product is offering, so the consumer thinks that they are gaining something for the extra price being paid.

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