Anchoring is a well-documented cognitive bias, described by Tversky and Kahneman in 1974, in which people rely heavily on the first number they see when making a judgment. In pricing, an anchor is a reference point, such as an enterprise plan, a monthly price shown beside an annual one, or the cost of the problem being solved, that makes the price under consideration seem more or less reasonable.
Common anchors on SaaS pricing pages
Anchors appear whenever one number is shown next to another. Some are deliberate design choices; others happen by accident.
- A high-priced enterprise or premium plan placed first or prominently.
- Monthly pricing shown beside a lower annual-equivalent price.
- The cost of the status quo, such as hours of manual work or a competitor's price.
- Per-user prices shown next to a total for a typical team.
Using anchors honestly
Anchors must be real. Showing a crossed-out “original” price that nobody ever paid is a classic deceptive practice, and consumer protection rules in the US, EU, UK and elsewhere restrict misleading reference pricing. Legitimate anchors are actual plans, actual list prices and honest comparisons.
Effects are context-dependent
Anchoring is robust in lab studies, but its effect on any given pricing page is unknown until measured. Plan order, page layout and the buyer's existing knowledge of market prices all matter. B2B buyers who have already seen competitors' prices bring their own anchors.
Example
Showing the cost of doing nothing
Hypothetical reconciliation tool Sablecourt adds a short section above its plans estimating the staff hours a finance team spends on manual reconciliation, with an editable calculator where buyers enter their own numbers. The plan prices then sit next to a figure the buyer produced themselves.
Common mistakes
Fake was-prices
Inventing a higher original price to make a discount look bigger can break advertising and consumer protection rules.
An anchor that scares people off
A large enterprise price at the top can make small buyers think the product is not for them. Watch behavior by segment.
Questions
Every price is seen next to something. Using true reference points to give context is normal; inventing reference prices to mislead is not.
