Price anchoring makes a service seem cheaper by showing a higher price first. Show a $5,000 option after presenting $10,000 or $15,000, and suddenly $5,000 looks like a deal.
Hey, Charles, how can I use pricing psychology when selling a service? You know what? Come take a look. So let's say you want to price your service at $5,000. Well, the first thing you're going to do is you're going to show them a premium version of your service priced at $10,000. So this initial high price acts as an anchor in your customer's mind. Then you're going to introduce an even fancier one at $12,000. Finally, you're going to reveal your main offering, which is the one you want your customers to choose. Price action. At only $5,000, it suddenly feels like a steal compared to the $10,000 and the $12,000 options. And voila, your $5,000 service now feels like a great deal. This technique is called price anchoring. It's simply when you present a higher price options first. And so that sets a mental benchmark. Customers perceive then the lower price option as reasonable and attractive.
