You're out shopping for the perfect white t‑shirt.

You spot one for $15. Then you notice the sale section…and there's a white tee for $20, marked down from $45.

Wow, what a bargain! Since it used to cost much more, it must be the better deal, right? $20 suddenly feels cheap compared to $45.

A woman speaks while gesturing, with the caption “I don’t like to pay full price” written at the bottom of the screen.

Well actually, you've just experienced the anchoring effect. Learn how to avoid it when shopping or negotiating prices.

What Is the Anchoring Effect?

The anchoring effect happens when the first number you see sticks in your mind and quietly influences your choices.

Once an anchor is set, you end up comparing every number to it — even when that first number isn’t objective or relevant.

A woman speaks, with the caption “That's the price I'm willing to pay” written at the bottom.

The anchoring effect is automatic and unconscious. It’s something every human brain does. And the funny thing is, even when you’re aware of it, it can still happen.

Once you know about anchoring, you start spotting it everywhere: in sale prices, in second‑hand listings, and in product comparisons.

Anchoring happens automatically, so you can’t stop it. But you can be aware of it and make more intentional choices.

A customer in a store points his finger at the shopkeeper and says, “I can see right through you!”

Quiz

You’re buying concert tickets. The first seats you check cost $150. Then you see seats for $110. Which response shows the anchoring effect?

Step 1: Do Your Research

Before you look at any prices, get a sense of the market value — the typical price people usually pay for an item . It’s what something normally costs across different stores or sellers.

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To determine market value:

  • Check a few stores.

  • Compare similar products.

  • Look up average prices online.

When you know what something usually costs, you’re less likely to be fooled by a “discount” or a high starting price.

A woman puts on a hat and says, “Can't fool me.”

Step 2: Have a Game Plan

Decide your budget or target price before you go shopping or walk into a negotiation.

Set a clear limit before you walk into the store: “I won’t spend more than $15,” or “I’ll offer $150 and won’t go higher.”

When you walk in with your own anchor, the first number you see can’t pull you off track. A cartoon cat holds a microphone and says, “Take it or leave it.”

Step 3: Sleep On It

If a price feels like a bargain even though it’s higher than the anchor you set for yourself — pause.

Give yourself time to think, compare, or come back later.

Anchoring happens quickly, so slowing down helps you judge the price more objectively.

Alexis Rose from Schitt's Creek says, “Although now that I think about it...

When you’re surrounded by sale signs or “limited‑time offers”, it’s easy to get swept up. Step out of the shop and grab a coffee to clear your head before you buy.

Example 1: Shopping

You’re shopping for a present for your friend. You want to get them something nice, but you don’t want to spend too much.

The first thing you see is a gaming headset for $90 — way above your budget. You walk away, but now $90 has become your anchor.

Then you see a Bluetooth speaker for $75. It’s still more than you wanted to spend, but compared to the first one, it feels like a bargain. You buy it without checking other options.

Jimmy Fallon says, “I'll take it, it's a good deal!”

How to overcome the anchoring effect:

Compare everything to a real budget, not the first price you saw.

If you planned to spend $40–$60, you can keep that as your anchor. You'll probably find something they’ll love for $50 — and actually within your range.

Example 2: Negotiating

You’re looking for a pre-loved smartphone. The first one you see is listed for $400, “barely used." Because it’s the first number you see, it becomes your anchor.

It seems reasonable — but you haven’t checked what similar phones usually sell for.

How to overcome the anchoring effect:

Look at what other phones of the same model and condition are going for.

If most listings are around $350–$370, you can use that range to set your own anchor. Before you message the seller, decide your limit — for example, “I won’t pay more than $370.”

A man sits while looking at his phone in his left hand and scratches his head with his right, appearing thoughtful. Photo by sayan Nath on Unsplash

When you walk in with your own anchor, you’re less likely to be swayed by the seller’s starting price. You can negotiate confidently because you already know what’s reasonable.

Quiz 🤔

A living room with a sofa, coffee table, and rug. Photo by Michiel Annaert on Unsplash
A seller on a popular second-hand site lists a sofa for $400. You want to buy it, but you know similar ones sell for $250.

What should you do to avoid anchoring?

A. Pay $400, since that’s the listed price.

B.  Wait a few days and hope the seller lowers the price.

C.  Use $250 as your anchor and negotiate from there.

D.  Offer $350, since it’s between the two prices.

Quiz

Select the answer option that will help you avoid anchoring:

Take Action

Anchoring shows up everywhere — in shopping, negotiating, and even everyday decisions — but now you know how to spot it before it steers you off course.

When you set your own anchor, you take back control of the conversation, the price, and the outcome. With a little awareness, you can make choices that feel intentional, not accidental.

A young man says, “I know what I have to do”.

You’ve got the tools. Now go use them to make smarter decisions in the real world.

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