What is price anchoring?

Price anchoring is the use of a reference price to shape how the next number feels: a premium tier that makes the middle plan look sensible, a crossed-out “was” price, or an enterprise column whose real job is to sell the plan beside it. It works because buyers judge prices relatively — against the first number they saw — rather than absolutely.

The anchor isn’t always yours to set: buyers arrive carrying competitors’ prices as anchors, which is why knowing the going rate in your category matters even if you price well above it. On your own pricing page, tier design is anchoring whether you intend it or not — the only question is whether the anchors are working for you.