How to Beat Anchoring Bias

Have you ever walked into a shop and seen a product that’s NOW ON SALE?

When this happens, you’ll also see the Before and After price.

It’s satisfying to see the Before price crossed out, with the After price below it in big, bold letters, isn’t it?

And because you’ve seen how high the Before price was, it looks like an absolute steal in comparison, right?

This is the Anchoring Bias at work.

How It Works

Our brains are associative in nature. This means we link things to other things.

Often, our brains fixate on the first piece of information they learn, and then frame everything relative to it.

It’s why we want to make “a good first impression” when we meet people. The good first encounter then frames every meeting after.

Because we associate new information with what we already know, you’re shown the Before price first because, when we compare that against the After price, we think we’re getting a bargain and thus are more likely to make a purchase.

The new price looks like a steal precisely because we’ve seen how high the old one was — even if the Before price was artificially inflated.

How Can You Combat This?

It’s super important to know that as we go through our day, the Anchoring Bias is doing its thing in the background.

Particularly with anything to do with money, don’t take the things you see at face value. So too, be mindful of the order in which you’re being presented with certain information.

For example, if you’re haggling on a price, you’ll often be presented with a high price first, and then be given a lower one. In comparison, the lower price will look great. This is intentional, because it distorts your perception of the lower price.

Don’t allow your judgements to be blinded by comparisons like this.