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The Madison Avenue Field GuideA field guide to marketing & advertising, by Brandon Mina

GlossaryBrand & Performance MarketingPrice Anchoring

Brand & Performance Marketing

Price Anchoring

Showing a higher reference price first so the actual or target price looks more attractive by comparison.

By Brandon MinaCEO, BrandPilot AIUpdated November 2026

Short answer

Price anchoring is showing a higher reference price first so that the actual or target price looks more attractive by comparison. Examples include displaying an original price beside a sale price or presenting a premium tier before standard options. It works because people judge value relative to the first number they see.