If you see a {{money:2000|USD}} watch first, the {{money:400|USD}} watch next to it suddenly looks reasonable.
That is the anchor doing its job before you have even decided what the item is worth to you.
The first number sets the frame
The Anchor Lands First
Once the middle number arrives first, the cheaper and pricier options both start orbiting it like it is objective truth.
Set the Starting Point
The brain leans hard on the first number it sees.
Later prices get judged relative to that first number, even when the first number was picked to manipulate you rather than inform you.
Daniel Kahneman and Amos Tversky proved in 1974 that even explicitly random numbers (like a roulette wheel spin) strongly anchor people's estimates of completely unrelated facts.
The Luxury Decoy Trick
Menus do this constantly.
One absurdly expensive option exists so the merely expensive one feels sensible. Pricing pages do it too: show {{money:99|USD}} first and {{money:29|USD}} feels cheap. Show {{money:9|USD}} first and the same {{money:29|USD}} feels ridiculous.
Quick check
Knowledge Check
Why do subscription pages always highlight the most expensive tier first?
Why:
- If they show you {{money:99|USD}}/mo first, {{money:29|USD}}/mo feels like a huge discount.
- If they showed you {{money:9|USD}}/mo first, {{money:29|USD}}/mo feels like a rip-off.
Try this
Ignore the comparison price
Ignore the crossed-out 'original price' on sale items. Ask one cleaner question: 'Would I pay {{money:40|USD}} for this right now if no other number was shown?' If the answer is no, the discount probably does not matter.
Try this
Set Your Price First
Before opening a pricing page, decide your own ceiling first: 'For this, my max is {{money:18|USD}} a month.' Your number needs to arrive before theirs does.
Key idea
What to remember
The first price or number is usually trying to set the frame. Slow down, name what you actually want, and decide from usefulness instead of comparison.
The first number is often bait, not truth.