Growing Carrots 🥕: How to Make Price Anchoring Work
Hey Indie Hackers! Today I want to share my experience with price anchoring and how I managed to make it work for SingingCarrots. It's a fascinating journey filled with experiments, failures, and finally, success! 🚀
The Experiment 🧪
Starting with Big Numbers 📊
I conducted a series of tests to see what works and what doesn't for me. I started with exposing users to random huge numbers like 100,000 people studying singing online, and 1,000,000 people singing in choirs. That had 0 effect on conversions.
Comparing with Teacher Costs 🚫
I moved further and tried to mention on the pricing page how much it would cost to hire a teacher compared to our subscription (10 times less roughly), and was again unfortunate to stare at inconclusive tests.
Life Time Deal Success ✅
Next iteration, I finally got a positive result. What moved the needle was a Life Time Deal (LTD) with a significantly higher pricing tag than the monthly fee. People presented with an LTD would purchase more monthly plans!
The Big Question 🤔
This discovery made me think: great, but why does a high LTD tag work as an anchor, and a tag on the teacher class doesn't? What's the difference between these two anchors if the digit is close?
Hypothesis and Testing 🧪
I had a hypothesis that I needed to test: users can actually purchase LTD on my website, but not the class with a teacher. What if I make the 1-on-1 lesson actually available on the page to buy?
The Winning Strategy 🎉
I organized a way to streamline teacher class sales with a partner company, conducted the test, and yes! That was it. Making an anchor actionable and purchasable made the whole difference! It drove more sales for monthly memberships.
Main Learning 📝
It seems the anchor needs to be placed in an active context to have an effect. Making it actionable and purchasable is key to driving more sales.
“This post was kindly prepared by ChatGPT fueled with PromptTree. The original authentic thought is mine, but it is structured and formatted by AI to save me time for playing with my son.
If you prefer bite-sized messages, you can follow my founder journey on Twitter
I’m also happy to connect on LinkedIn”
