Made with 🧠 and πŸ«€ by Youssef Bouksim

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Anchoring Bias

The first number people see becomes the reference point for every judgement that follows. A price is never cheap or expensive in absolute terms β€” only relative to whatever came before it.

5 min readUX Β· Product Β· Pricing

In 1974, Amos Tversky and Daniel Kahneman ran an experiment that unsettled the field of economics. They spun a rigged wheel of fortune β€” it could only land on 10 or 65 β€” then asked participants to estimate the percentage of African countries in the United Nations. The group who saw 65 gave consistently higher estimates than the group who saw 10. A random, irrelevant number had permanently skewed their answers.

This is anchoring: the tendency to rely disproportionately on the first piece of information encountered when making subsequent judgements. In pricing, it means the perceived value of any number is almost entirely determined by whatever number the user saw first. $79/year feels expensive with no context. It feels like a significant saving after seeing that paying monthly would cost $108. The product is identical. The perception is completely different.

Designers can use this honestly β€” showing a genuine reference price that helps users understand real value β€” or dishonestly, by fabricating an inflated β€œoriginal price” that no one ever paid. Both use the same mechanism. Only one is a lie.

✦ Key takeaways
βœ“
The anchor doesn't have to be relevant β€” just first. Tversky and Kahneman's wheel had nothing to do with UN membership. It didn't matter. Whatever number appears first becomes the reference. In pricing, this means the crossed-out price above your sale price shapes perception even before the brain has evaluated whether it's a meaningful comparison.
βœ“
An honest anchor is the annualised monthly cost. If your monthly plan costs $9/month, then $108/year is a real, verifiable anchor β€” it's what a user actually pays if they choose monthly. Showing $108 $79 tells a true story: you genuinely save $29 by paying annually. The anchor earns its credibility because anyone can verify it.
βœ“
A fake anchor is a dark pattern. Showing $299 $79 when the product never sold at $299 manufactures a saving that doesn't exist. It exploits anchoring to make $79 feel dramatically cheaper than it is. Users have become increasingly skilled at detecting inflated reference prices β€” and a detected fake anchor destroys trust faster than having no anchor at all.
β€œAny salient number will anchor subsequent numerical judgements β€” regardless of whether it has any meaningful relationship to the question.”
β€” Tversky & Kahneman, Science, 1974

Same product, same price β€” honest anchor vs fabricated one

Both product listings below show the same flea collar at the same price: $47.99. The product, the rating, the features β€” all identical. The only difference is the anchor above the sale price. One anchor is the genuine previous retail price. One is inflated to manufacture a bigger discount. Notice how differently $47.99 feels in each context.

After β€” honest anchor, $59.99 is real list price
amazon.com/dp/seresto-flea-tick-collar
shop
Search products...
Pet Supplies β€Ί Dogs β€Ί Flea & Tick β€Ί Collars
Visit the Seresto Store
Seresto Flea & Tick Collar For Dogs Over 18 lbs., Treatment & Prevention, Vet-Recommended, 8 Month Protection
14,208 ratings
List Price: $59.99
-20%$4799
FREE delivery Tue, Apr 1
BrandSeresto
Duration8 months
SizeLarge dogs (over 18 lbs)
In Stock
The β€œList Price: $59.99” is the manufacturer's suggested retail price β€” verifiable across other retailers. The 20% saving is real. The anchor helps users understand they are buying at a discount, without fabricating one.
Before β€” dark pattern, fabricated $149.99 list price
amazon.com/dp/seresto-flea-tick-collar
shop
Search products...
Pet Supplies β€Ί Dogs β€Ί Flea & Tick β€Ί Collars
Visit the Seresto Store
Seresto Flea & Tick Collar For Dogs Over 18 lbs., Treatment & Prevention, Vet-Recommended, 8 Month Protection
14,208 ratings
List Price: $149.99
You save: $102.00 (68%) β€” Today only
$4799
FREE delivery Tue, Apr 1
BrandSeresto
Duration8 months
SizeLarge dogs (over 18 lbs)
In Stock
The β€œList Price: $149.99” is invented. This product has always sold for $47–$60. The β€œYou save $102” is fabricated entirely from a fictional baseline. A user who checks any price tracker would find no evidence of $149.99 β€” ever.

The mechanism doing the work is identical in both cases β€” a struck-through number above the real price that makes the real price feel smaller. The difference is whether the number being struck through describes anything real. One anchor is a reference. The other is a prop.

Fake anchor pricing is one of the most common dark patterns in e-commerce and SaaS, and one of the most frequently regulated. Beyond the legal risk, it carries a specific trust cost: once a user realises the anchor is fake β€” by checking whether the product was genuinely ever sold at that price β€” the entire credibility of the brand collapses. A detected lie about price is worse for conversion than no anchor at all.


SaaS pricing β€” annualised monthly cost vs fictional β€œwas” price

The same three plans at the same three prices. The honest version anchors each annual price against the verifiable monthly alternative β€” users can confirm the maths themselves. The dark-pattern version invents an inflated original price no one ever paid, then screams percentages in red to manufacture urgency. The product is identical. The perception is not.

After β€” honest anchor vs verifiable alternative
acme.com/pricing
acme
ProductPricingDocs
Simple, transparent pricing
Pay annually, save vs monthly. Cancel anytime.
Starter
$108/yr if monthly
$9/mo
$7/mo
Save $24/yr
5 projects
1 GB storage
Email support
Most popular
Pro
$348/yr if monthly
$29/mo
$19/mo
Save $120/yr
Unlimited projects
50 GB storage
Priority support
API access
Team
$948/yr if monthly
$79/mo
$59/mo
Save $240/yr
Everything in Pro
SSO
Audit logs
Dedicated CSM
The crossed-out monthly price is the real alternative. Users can verify the maths: $29 x 12 = $348. The $120 saving is genuine. The anchor earns credibility because anyone can check it.
Before β€” fictional β€œwas” prices
acme.com/pricing
acme
ProductPricingDocs
Limited time β€” up to 87% off
Massive savings β€” today only
These prices won’t last. Lock in before midnight.
Starter
$49/mo
$7/mo
86% OFF
5 projects
1 GB storage
Email support
Most popular
Pro
$149/mo
$19/mo
87% OFF
Unlimited projects
50 GB storage
Priority support
API access
Team
$399/mo
$59/mo
85% OFF
Everything in Pro
SSO
Audit logs
Dedicated CSM
The crossed-out prices ($49, $149, $399) are invented. The product never cost that much. The β€œ87% OFF” is manufactured from fictional baselines. Pair it with β€œtoday only” urgency and the manipulation compounds.

Every price on a page with a struck-through number should pass the same test: can that number be verified by a user who decides to check? The annualised monthly cost, a genuine previous price the product sold at for a period, a specific competitor's public price β€” these are all verifiable. A number chosen because it makes the discount look impressive is not.


Applying this to your work

βœ“ Apply it like this
β†’Use the annualised monthly cost as the anchor for annual plans β€” it's the real alternative and verifiable by any user willing to do the maths.
β†’Show a genuine previous price if the product actually sold at that price for a meaningful period β€” and be prepared to document it.
β†’Make the absolute saving explicit ("Save $29") alongside the percentage β€” it helps users evaluate the anchor without calculating.
β†’Order plans from most expensive to least β€” the high anchor on the first plan makes subsequent plans feel reasonably priced by comparison.
βœ— Common mistakes
β†’Never show a crossed-out price that no one ever paid. It's a fabricated anchor β€” and in many jurisdictions, illegal under consumer protection law.
β†’Don't inflate a "was" price just to make the discount percentage look impressive. The percentage is meaningless if the baseline is invented.
β†’Avoid "limited time" language attached to a discount that is always available β€” pairing a fake anchor with fake urgency compounds the manipulation and the legal exposure.
β†’Ask of every struck-through price: would we be comfortable if a regulator or journalist asked us to prove this number was genuine? If not, remove it.