Anchoring isn’t just about price

Anchoring isn’t just about price. It’s also about quality, speed, and status. 

When sales and marketing people talk about “anchoring,” they’re talking about stating an initial frame by which the rest of the conversation is viewed. Most of the time, this is a price anchor. Negotiations only deviate so far from the initial number put forward. So, if you say your day rate is $1,000, that becomes the “anchor” for the negotiation. It’s unlikely your client will make you a counter-offer of $200—they’ll probably counter with something closer to the anchor, like $700. 

Anchoring goes beyond price. As annoying as it is, name-dropping is a kind of “status anchor.” It’s effective, which is why people still do it, even though it’s so obnoxious. When someone talks about the famous people they know, it sets a status anchor that makes other people feel “lucky” to be able to talk to the, or work with them. 

It’s hard for a business owner to fathom why they would pay you $25,000 to make a marketing video, when they can pay their cousin $500 to make a marketing video. They won’t be able to justify paying 50 times more—until they see that your work is 100 times better. If you’re able to show them your process, your results, and your service, that sets a “quality anchor.” They see how much better you are, and change their own budget accordingly. 

A few days after my wife and I got married, I asked our photographer how long it takes for photos to be delivered. I work in the commercial world, and when we shoot events, we turn stuff around in two or three days. “Typically, two to three months for wedding photos,” he told me. That’s a speed anchor. When he delivered the images in four weeks instead, we were thrilled. 

All of these things are crucial to your clients’ experience and their perception of your value. It’s up to you to anchor your price, your status, your quality, and your speed to create the best experience for them.