Are You Being ‘Anchored’?
How a Fake ‘Original Price’ Makes You Overspend
What is the Anchoring Effect?
Ever seen a shirt for $50, marked down from $100, and thought, “What a steal!”? That’s the anchoring effect. It’s a cognitive bias where our brains rely too heavily on the *first* piece of information we receive—the “anchor”—when making decisions. In shopping, that “original” price, whether real or not, sets our perception of value.
See High “Original” Price: $100
Brain Sets This as the “Anchor”
See “Sale” Price: $50
Perceive a “$50 Savings” – A Great Deal!
The “Deal” vs. The “Reality”
The anchor’s power isn’t just about making you *feel* good; it directly impacts your willingness to buy. We surveyed shoppers on their interest in the exact same $40 shirt, but presented it in two different ways. The results are stark.
The anchor *doubled* the purchase intent, even though the final price and the product were identical. We’re not buying the item, we’re buying the “deal.”
Why Does It Work So Well?
Our brains are wired for shortcuts, and the anchoring effect exploits a few of them. It’s a powerful psychological cocktail that’s hard to resist, driven by perceived value, a sense of urgency, and even an assumption of quality.
These factors combine to make the anchored price feel like an opportunity that’s too good to pass up, short-circuiting our rational decision-making.
How to Spot It & Beat It
You can break the anchor’s hold. The key is to shift from a reactive mindset (“What a deal!”) to a proactive one (“What is this worth *to me*?”). Here are four simple steps to become a smarter shopper.
- 1 Pause & Question the Price: Is that “original” price realistic? Was it ever sold at that price, or is it just a marketing trick? A moment of skepticism is your first line of defense.
- 2 Ignore the Anchor: Mentally (or physically!) cover the “original” price. Now, look at the sale price. Is this item worth that amount to you, in a vacuum?
- 3 Do a Quick Comparison: Pull out your phone. A 30-second search for the same item at other retailers will reveal its true market value, instantly breaking the anchor’s power.
- 4 Ask “Do I Need This?”: The most powerful question. A 50% discount on something you don’t need is still a 100% waste of money. Don’t let a “deal” create a need.
The anchoring effect is one of the most effective tools in a marketer’s toolbox. But by understanding it, you can recognize the trick, break its hold, and make sure you’re spending your money on value you actually want, not just the value they tell you you’re getting.