MONEY
Why a Fake $100 Price Can Make $60 Feel Cheap
This is the Anchoring Effect — and it shows up everywhere you shop.
6 min read
01The Story
A watch sits under glass at $100. Next to it, the same design marked $60 feels reasonable. Remove the $100 tag and $60 suddenly looks expensive again.
02What Happened?
Your judgment never started from zero. It started from the first number you were given.
03The Hidden Logic
Anchoring is a mental shortcut. When uncertain, we lean on the most available reference — even when that reference is arbitrary.
04Where You See It
Menu engineering. Real estate listing strategies. Salary negotiations. "Compare at" prices on marketplaces.
05What You Can Do
Generate your own anchor first: what would you pay before seeing any tag?
06The Takeaway
The first price you notice is rarely the true price. It's the frame.
The Takeaway
The first price you notice is rarely the true price. It's the frame.