The Anchor Price

Published: April 26, 2022, 9 a.m.

This week, in episode 105, Shawn Busse, Paul Downs, and Liz Picarazzi talk pricing, specifically how they use an anchor price\u2014the first number they offer prospective customers. Do they anchor low to avoid scaring anyone away? Or do they anchor high to disqualify unlikely buyers and to make the actual sale price feel more comfortable? Plus: Liz explains the remarkable, dream-come-true, my-product-in-Times Square PR gift she just received. Of course, this is entrepreneurship, so even when dreams come true, there tend to be complications. Liz\u2019s business is getting a wave of publicity at a time when her fabricator in Shanghai has been locked down for almost four weeks. She\u2019s talking to domestic fabricators as well, but they, too, will be dependent on raw materials that have to come from China. \u201cIt\u2019s a problem,\u201d she tells us.