The Price Trick That Makes You Spend More (And How to Use It)
☕ The Growth Espresso Edition #106
Hi, and welcome back to Growth Espresso - your one-stop destination for everything e-com.
Ever walked into a store, seen a $200 jacket, and thought, “No way.” But then, right next to it, there’s another jacket—marked down from $300 to $200. Suddenly, it feels like a steal. You didn’t just get a jacket—you won a deal.
That’s price anchoring in action. And trust me, it’s everywhere.
From subscription services framing their costs as “just $5 a month” to brands showing competitor prices to make their own seem like a no-brainer—this pricing trick is baked into ecommerce strategies. But here’s the kicker: when done right, it doesn’t just make a product seem more affordable—it makes customers feel like they’re getting way more value.
So, how can you use this to your advantage? Let’s break down some real-world examples of brands using price anchoring to boost conversions—without making it feel like a gimmick.
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The Psychology Behind Price Anchoring
So, what’s really happening when we fall for a “great deal”?
It all comes down to how our brains process value. We don’t look at prices in isolation—we compare them. That first price we see? That’s the anchor. Everything after that gets judged relative to it.
Think of it like this:
• A $50 hoodie feels expensive—until you see it marked down from $90.
• A $15 subscription seems pricey—until it’s framed as just $1.25 per month.
• A $5,000 coaching program? Ouch. But when it’s positioned next to a $10,000 VIP package, suddenly it’s the “budget” option.
This isn’t some theoretical pricing hack—it’s a core part of how consumers make decisions. And if you’re running an ecommerce brand, it’s something you need to leverage.
How Ecommerce Brands Use Price Anchoring to Boost Sales
Let’s dive into some real-world examples of brands using price anchoring to drive more conversions.
1. NatureBox: Making Membership Fees Feel Like a Steal
NatureBox, a healthy snack subscription, does something clever with their pricing. Instead of making their $5/month membership fee the focus, they highlight “$60 in credits annually.”
Translation? They’re framing the cost in a way that makes it feel insignificant.
If they just said, “Hey, it’s $5 a month,” people might hesitate. But when you show the yearly value upfront, it suddenly feels like free money. It’s the same reason brands love to say “Save $600 a year!” instead of “Save $50 a month.” The bigger number always sounds more impressive.
Key takeaway: Frame your pricing in a way that emphasizes value over cost.
2. Harry’s: Making Annual Fees Feel Like Pocket Change
Harry’s, the DTC razor brand, does something similar. Their annual subscription is $15—but instead of leading with that, they break it down into a monthly price.
Why? Because $1.25 a month feels like nothing. And once someone processes it at that price point, they’ve already justified the cost in their mind.
This trick works incredibly well for memberships, SaaS pricing, and even premium products with high upfront costs.
Key takeaway: If your product has an annual cost, break it down into a smaller, easier-to-digest timeframe.
3. Four Sigmatic: The Daily Price Trick
Four Sigmatic takes this one step further. Instead of showing their product’s full price, they break it down into a daily cost—something like “just $1 per day.”
That’s less than a cup of coffee. And when people compare that cost to something trivial they spend money on daily, it becomes a no-brainer.
Key takeaway: Framing your price in daily or weekly terms makes it feel more affordable.
4. Casper: The “Strikethrough” Effect
Casper, the mattress brand, knows how to play the price anchoring game.
Here’s what they do:
1. Show the higher “original” price.
2. Strike it out in a dull gray color.
3. Highlight the discounted price in bold green.
What’s happening here?
First, our brains have to put in more effort to read the strikethrough price. That makes it feel less relevant. Meanwhile, the green price stands out—it’s easier to read and feels like a win.
This taps into color psychology, too. Green = positive emotions (think “go,” “save,” “growth”), while gray feels dull and unimportant.
Key takeaway: Use visual cues to make the sale price stand out while making the original price harder to process.
5. Supply: Making a $75 Razor Feel Cheaper Than a $9 One
Supply sells high-end, non-disposable razors. Their biggest challenge? Convincing people to spend $75 upfront instead of grabbing a $9 pack of disposable razors.
So, how do they flip the script?
They compare the long-term cost:
• Their razor = $24 per year.
• Disposable razors = $108 per year.
Boom. That $75 upfront now feels like a savings, not an expense.
Key takeaway: If your product has a high upfront cost but saves money over time, make the long-term savings the focus.
How to Use Price Anchoring in Your Own Business
Alright, now that you’ve seen how top ecommerce brands do it, let’s talk about how you can use price anchoring in your own business.
Here are three simple tactics:
1. Use a “fake” high anchor. Show a premium-priced option first, even if you don’t expect people to buy it. This makes everything below it seem like a bargain.
2. Break down your pricing into smaller chunks. If you charge annually, frame it as a monthly or daily cost to make it feel smaller.
3. Use visual cues to make discounts stand out. Strikethroughs, color contrast, and font sizes all help direct attention to the right price.
Final Thoughts
Price anchoring isn’t just a sneaky marketing trick—it’s how our brains work. The sooner you start using it strategically, the sooner you’ll start seeing higher conversions and fewer price objections.
So, take a look at your pricing strategy. Where can you tweak things to make your products feel like a better deal? The answer might be simpler than you think.