Compare-at pricing is a retail pricing strategy where a product's original or suggested retail price is displayed alongside its current selling price to highlight the discount being offered. On Shopify stores, this is implemented through a "compare_at_price" field that, when populated, signals that an item is on sale and shows customers exactly how much they're saving.
This psychological pricing technique leverages the anchoring effect—customers perceive greater value when they can see the original price next to the sale price. For example, a product listed at $79 with a compare-at price of $120 appears to offer significant savings, even if the $120 price was never actually charged. This strategy is commonly used during promotional periods, clearance events, and as an ongoing tactic for certain product categories.
For competitive intelligence purposes, tracking compare-at pricing is essential for understanding a brand's discount strategy. By monitoring how often compare-at prices appear, the depth of discounts offered, and which products are most frequently promoted, analysts can gain insights into a brand's pricing philosophy, inventory management, and promotional calendar.