The Misconception: You rationally analyze all factors before making a choice or determining value.
The Truth: Your first perception lingers in your mind, affecting later perceptions and decisions.
You try it on, look in the mirror and decide you must have it. While wearing this item, you imagine onlookers will clutch their chests and gasp every time you walk into a room or cross a street. You lift the sleeve to check the price – $1,000.
Well, that’s that, you think. You start to head back to the hanger when a salesperson stops you.
“You like it?”
“I love it, but it’s just too much.”
“No, that jacket is on sale right now for $400.”
It’s expensive, and you don’t need it really, but $600 off the price seems like a great deal for a coat which will increase your cool by a factor of 11. You put it on the card, unaware you’ve been tricked by the oldest retail con in the business.
One of my first jobs was selling leather coats, and I depended on the anchoring effect to earn commission. Each time, I figured it was obvious to customers the company I worked for marked up the prices to unrealistic extremes. Yet, over and over, when people heard the sale price, they smiled and wrestled with their better judgment.
The prices you expect to pay, where did those expectations originate?