Comments on: Price Anchoring, Or Why a $499 iPad Seems Inexpensive http://www.mint.com/blog/how-to/price-anchoring/ The blog of the free, simple personal finance solution. Track all your spending automatically, find the best deals, save more money. And save the world. Sun, 12 Feb 2012 05:07:51 +0000 hourly 1 http://wordpress.org/?v=3.1.3 By: woopy http://www.mint.com/blog/how-to/price-anchoring/comment-page-1/#comment-48002 woopy Sat, 24 Apr 2010 19:47:36 +0000 http://www.mint.com/blog/?p=8666#comment-48002 In my OECD country it is illegal for a corporation to play potential candidates off against each other based on the salary they ask for. You get offered the job, then you work out the contract. In my OECD country it is illegal for a corporation to play potential candidates off against each other based on the salary they ask for. You get offered the job, then you work out the contract. ]]> By: Kevin http://www.mint.com/blog/how-to/price-anchoring/comment-page-1/#comment-47687 Kevin Mon, 12 Apr 2010 20:51:53 +0000 http://www.mint.com/blog/?p=8666#comment-47687 KB Toys got hit with a lawsuit for price anchoring didn't they? They had two prices on the label: one price was crossed out with a red line implying the other price was a discount. KB Toys got hit with a lawsuit for price anchoring didn’t they? They had two prices on the label: one price was crossed out with a red line implying the other price was a discount. ]]> By: Stewart http://www.mint.com/blog/how-to/price-anchoring/comment-page-1/#comment-47672 Stewart Mon, 12 Apr 2010 15:50:59 +0000 http://www.mint.com/blog/?p=8666#comment-47672 In the UK the grocery stores often show a price element where the cost of something is higher in another store, i guess this works on the same principle... of course they never show a sign where they are higher... In the UK the grocery stores often show a price element where the cost of something is higher in another store, i guess this works on the same principle…

of course they never show a sign where they are higher…

]]> By: Justin http://www.mint.com/blog/how-to/price-anchoring/comment-page-1/#comment-47643 Justin Sun, 11 Apr 2010 02:14:52 +0000 http://www.mint.com/blog/?p=8666#comment-47643 it's tablet it is competing against not netbooks. there is no other tablet touch screen netbook available, so they set the price. it’s tablet it is competing against not netbooks. there is no other tablet touch screen netbook available, so they set the price. ]]> By: Justin http://www.mint.com/blog/how-to/price-anchoring/comment-page-1/#comment-47642 Justin Sun, 11 Apr 2010 02:13:02 +0000 http://www.mint.com/blog/?p=8666#comment-47642 it's spelled losing, loosing is not a word, and loose means something entirely different, for ex, 'JustMeHere' loosely understands what a computer does if he thinks that apple makes sub par products - they may have some limitations but i will trade that for consistency and a lack of security issues. it’s spelled losing, loosing is not a word, and loose means something entirely different, for ex, ‘JustMeHere’ loosely understands what a computer does if he thinks that apple makes sub par products – they may have some limitations but i will trade that for consistency and a lack of security issues. ]]> By: Chris http://www.mint.com/blog/how-to/price-anchoring/comment-page-1/#comment-47628 Chris Sat, 10 Apr 2010 12:44:03 +0000 http://www.mint.com/blog/?p=8666#comment-47628 I think this is why the employer offers first - the candidate may be surprised or the employer may be ridged on the pay. Your company might be exciting to work for John, that could be a reason in itself to counter offer right? When I didn't get what I first asked for I wasn't disgruntled at all. We met a few times more and reached an agreement and now I have a great supervisor (and company atmosphere) - I love going to work now. It's just so much better than the old job. Thats worth a lot to me, who cares I get paid a little less than national average, I am happy there and get paid enough to meet my needs. I think 'anchoring' works better with products and fees than pay and income don't you? I think this is why the employer offers first – the candidate may be surprised or the employer may be ridged on the pay.

Your company might be exciting to work for John, that could be a reason in itself to counter offer right? When I didn’t get what I first asked for I wasn’t disgruntled at all. We met a few times more and reached an agreement and now I have a great supervisor (and company atmosphere) – I love going to work now. It’s just so much better than the old job. Thats worth a lot to me, who cares I get paid a little less than national average, I am happy there and get paid enough to meet my needs.

I think ‘anchoring’ works better with products and fees than pay and income don’t you?

]]> By: Chris http://www.mint.com/blog/how-to/price-anchoring/comment-page-1/#comment-47627 Chris Sat, 10 Apr 2010 12:41:43 +0000 http://www.mint.com/blog/?p=8666#comment-47627 I think this is why the employer offers first - the candidate may be surprised or the employer may be ridged on the pay. Your company might be exciting to work for John, that could be a reason in itself to counter offer. When I didn't get what I first asked for I wasn't disgruntled at all. We met a few times and reached an agreement and now I have a great supervisor (and company atmosphere) - I love going to work now. It's just so much better than the old job. Thats worth something to me, who cares I get paid a little less than national average, I am happy there and get paid enough to meet my needs. I think 'anchoring' works better with products and fees than pay and income don't you? I think this is why the employer offers first – the candidate may be surprised or the employer may be ridged on the pay.

Your company might be exciting to work for John, that could be a reason in itself to counter offer. When I didn’t get what I first asked for I wasn’t disgruntled at all. We met a few times and reached an agreement and now I have a great supervisor (and company atmosphere) – I love going to work now. It’s just so much better than the old job. Thats worth something to me, who cares I get paid a little less than national average, I am happy there and get paid enough to meet my needs.

I think ‘anchoring’ works better with products and fees than pay and income don’t you?

]]> By: Chris http://www.mint.com/blog/how-to/price-anchoring/comment-page-1/#comment-47626 Chris Sat, 10 Apr 2010 12:29:49 +0000 http://www.mint.com/blog/?p=8666#comment-47626 First off this is an awesome article! Greg - Even thought a company knows what their staff is paid you could suggest a higher number with national data that proves some do get paid x each year or your current pay. (I like http://www.bls.gov/) If you have to decline an offer explain why you could get paid closer to that, or suggest slightly higher than what you need etc. All the while you are willing to counter offer and accept at a lower numbers. Personally I would guess this works best when considering a new job, tougher if you are already there. I have had a new job match my previous salary even thought their current staff wasn't there yet. It took me declining the first offer. First off this is an awesome article!

Greg – Even thought a company knows what their staff is paid you could suggest a higher number with national data that proves some do get paid x each year or your current pay. (I like http://www.bls.gov/) If you have to decline an offer explain why you could get paid closer to that, or suggest slightly higher than what you need etc. All the while you are willing to counter offer and accept at a lower numbers. Personally I would guess this works best when considering a new job, tougher if you are already there.

I have had a new job match my previous salary even thought their current staff wasn’t there yet. It took me declining the first offer.

]]> By: Matthew Amster-Burton http://www.mint.com/blog/how-to/price-anchoring/comment-page-1/#comment-47541 Matthew Amster-Burton Thu, 08 Apr 2010 17:41:12 +0000 http://www.mint.com/blog/?p=8666#comment-47541 Kurt, sorry that was unclear. It means that if you bring along your own devil's advocate to say (not in these words exactly), "Hey, is that REALLY a good deal or does it just sound like a good deal because of anchoring?" that will help blunt the effect of anchoring. Studies have found that people who bring a friend along to negotiations get better deals on average. (I believe most of the studies have involved car buying, however. Doesn't really work on a job interview.) Kurt, sorry that was unclear. It means that if you bring along your own devil’s advocate to say (not in these words exactly), “Hey, is that REALLY a good deal or does it just sound like a good deal because of anchoring?” that will help blunt the effect of anchoring. Studies have found that people who bring a friend along to negotiations get better deals on average. (I believe most of the studies have involved car buying, however. Doesn’t really work on a job interview.) ]]> By: Kurt http://www.mint.com/blog/how-to/price-anchoring/comment-page-1/#comment-47534 Kurt Thu, 08 Apr 2010 15:07:38 +0000 http://www.mint.com/blog/?p=8666#comment-47534 Matthew, I don't understand your penultimate paragraph "...If you’re buying — especially if it’s a big purchase like a car or a house – bring a friend. “Have someone there with you who will take your side and will say, ‘Think of reasons why what you’re saying is right and what they’re saying is a ripoff,’” says Poundstone. “It really does have a measurable statistical effect.” This was thrown in at your closing without any explanation. What were you trying to convey and what did Poundstone mean? Matthew,

I don’t understand your penultimate paragraph “…If you’re buying — especially if it’s a big purchase like a car or a house – bring a friend. “Have someone there with you who will take your side and will say, ‘Think of reasons why what you’re saying is right and what they’re saying is a ripoff,’” says Poundstone. “It really does have a measurable statistical effect.”

This was thrown in at your closing without any explanation. What were you trying to convey and what did Poundstone mean?

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