Anchoring in B2B Pricing Strategy

Using Reference Points to Influence Purchasing Decisions.

Anchoring is a powerful psychological phenomenon that can have a significant impact on pricing decisions in B2B marketing. The basic idea is that the first piece of information a person receives about a product or service can serve as a reference point, influencing all subsequent decisions about the value of that product or service.

Using Price-Anchoring Tactics for Influencing Perceived Value

Here are some ways to leverage anchoring as part of your B2B pricing strategy. But before we get into them, we hope it goes without saying, but please don’t use all of these tactics concurrently.

1. High-Low Anchoring: This tactic involves presenting a high-end offer followed by a lower-priced offer. The lower-priced offer will seem more attractive in comparison to the higher-end offer, even if it’s still relatively expensive. You’ll want to make sure these prices are easily found – obfuscating them would be counterproductive.
   
2. Premium Packages: Offering a premium package can be a way to anchor high prices and make lower-priced options seem more attractive. This tactic could involve offering a deluxe version of a product or service, with additional features and benefits. SaaS companies use this approach all the time – both as a way for users to self-define, but also to help anchor their preferred package against a seemingly unreasonable high-end price and an overly basic low-end feature-set.
   
3. Upsells and Add-ons: Upselling and offering add-ons can also be a way to anchor high prices. By presenting a high-priced offer first, lower-priced add-ons can seem more attractive in comparison. A la carte pricing is a great way to increase ARPU (Average Revenue per Unit/User) as customers may find certain features appealing after using the product and opt to increase their monthly/annual spend with you.
   
4. Comparison Shopping: By comparing your product or service to similar offerings from competitors, you can influence a prospect’s perception of value. Make sure to highlight the unique features and benefits of your solution to demonstrate its value. New entrants into established markets use this tactic often, by highlighting the value of the differences between your product or service and that of your competitor(s).
   
5. Bundle Pricing: Bundle pricing is a way to anchor high prices by offering a package of products or services at a discount. The discount creates a sense of value and makes the package seem more attractive. A really great example of this is if a company owns three complementary brands/products – they’ll bundle the products together at a higher pricepoint than just a single product’s pricepoint. The strategy here is to increase your customers’ spend with your company, not just increase unit sales of a specific product. Think CLTV, not ARPU.

A “Conversion Strategy” approach to pricing

Anchoring is a powerful tool for B2B marketers looking to influence pricing decisions and close more deals. By using techniques like high-low anchoring, premium packages, upsells and add-ons, comparison shopping, and bundle pricing, you can influence the perceived value of your solution and ultimately close more deals.

One Last Comment:

Be sure to use anchoring in an ethical and transparent manner, as using it in a deceptive way can harm your brand and erode trust with your customers.