Katelyn Bourgoin

Katelyn Bourgoin

10-11-2022

15:59

Love him or hate him, @elonmusk gave a masterclass on Price Anchoring last week Did you notice? [A thread 🧵]

Twitter Blue costs $20 Mmm, expensive What about now?👇 Twitter Blue costs $̶2̶0̶ $8 Okay! Where do I buy? This is Anchoring and @elonmusk just used it to convince everyone that Twitter's Blue price is worth it

People don’t instinctively know what is a “good price” They search for comparisons to determine if they’re getting a good deal or not Smart marketers use Anchoring to set expectations and nudge more people toward the buy button

Twitter Blue is a hot topic right now (and I definitely have thoughts on how it's rolling out) But let's go back in time a few weeks... When Elon announced that Twitter Blue would cost $20, he set a high anchor and got a ton of backlash Then, a few days after he tweeted this:

Suddenly, more people were OK with the idea of paying $8 This is a public masterclass on how to use Anchoring to drive sales

Before you argue that Elon was just back-peddling after people balked at $20, not so fast... Elon is clearly a student of cognitive biases 👇

Here are 4 ways to use Anchoring to drive sales (like Elon did), starting with… 1/ Using strike-through pricing for deals @REI did this on one of their recent sales They highlighted their deals with a strike-through plus set the new price in red (another psychology trick)

2/ Create a more expensive option as an anchor for your core offer What’s your core offer? The one that you want more people to buy? Choose the price for it… and then add a decoy product as an anchor 👇

But a decoy doesn’t need to be a similar product—it can be a different solution to get the same job done At @CustomerCampCo, I offer digital products that I anchor with a high-ticket option (1:1 call with me) Since adding this option, the sales of on-demand products grew 15% 🚀

3/ Show how your product is cheaper than competitors Instead of writing about how much cheaper and better your product is than the competition, you can show your buyers how much less expensive it is Quince, a clothing brand, does this:

4/ Sequence offers strategically Costco puts its most expensive products at the front of the store This is not random They use Anchoring to make your mind think anything less than a $2000 TV is a great deal Suddenly that extra 20-pack of chicken breast looks like a deal

How can you apply this to sell more? 👉 Use strike-through pricing to share deals 👉 Compare your product to high-priced competitors 👉 Create an expensive option as an anchor for your core offer Remember: people use comparisons to decide if they’re getting a good deal or not

Did you find this thread helpful? Retweeting this tweet costs $̶2̶ is Free (see what I did?) If you’d share it (which will take about 0.3 seconds) I’d be so grateful 🙏

And a special shoutout to @KashishSukhija4 whose comment on one of my posts inspired this thread He’s clearly a smart dude—give him a follow too



Follow us on Twitter

to be informed of the latest developments and updates!


You can easily use to @tivitikothread bot for create more readable thread!
Donate 💲

You can keep this app free of charge by supporting 😊

for server charges...