Question

When a client keeps comparing new offers to their first, often high, price idea, what specific thinking shortcut are they using that makes them stick to that first number?

Accepted Answer

The specific thinking shortcut the client is using is anchoring bias. Anchoring bias is a cognitive bias, which is a systematic error in thinking that affects the decisions and judgments people make. It occurs when an individual relies too heavily on an initial piece of information, known as the &#x27;anchor,&#x27; when making subsequent decisions or judgments. In this scenario, the client&#x27;s first, often high, price idea acts as this anchor. Once this initial number is established in their mind, all new offers are evaluated by adjusting away from that anchor, but these adjustments are often insufficient. This means the client&#x27;s perception of value for any new offer remains disproportionately influenced by that first, often high, price point, even if the anchor itself was arbitrary or uninformed. For instance, if a client initially thought a service would cost $1,000, and is then presented with an offer for $700, they might still perceive $700 as expensive because their internal anchor of $1,000 has skewed their reference for what is considered a &#x27;fair&#x27; or &#x27;low&#x27; price, making them stick to their first high idea.

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When a client keeps comparing new offers to their first, often high, price idea, what specific thinking shortcut are they using that makes them stick to that first number?