Pricing listed as '$2.99 USD per month when billed annually' instead of '$35.88 USD per year'

edited December 2018 in Purchasing

On your pricing page you state '$2.99 USD per month when billed annually'. In reality, your pricing is $36 USD per year. I've been a 1Password user for years (since v3). I'm coming towards the end of my trial with 1Password 7, but it's the whole pricing thing, which seems deceptive and like a big money grab, that is probably going to push me to a competitors product. If it was actually $2.99 per month I would think about doing it, but I don't think, at this stage, that I'm going to fork out $36 USD (I'm Australian, so it's significantly more for me) a year.


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Comments

  • vplewisvplewis Junior Member

    @dagaz In the United States $2.99 times 12 equals $35.88. What does it equal in Australia?

  • edited December 2018

    @vplewis $36 USD = $51 AUD. My point is, if the price is charged annually, it should state the annual price (rather than the monthly price, which isn’t what’s charged).

  • vplewisvplewis Junior Member

    @dagaz If you pay monthly it's $3.99 per month. If you pay annually, it's $2.99X12= ~$36 per year. So the comparison is between payment per month and payment per year. At no point does the discussion include FOREX or taxes or VAT, which 1Password doesn't know about until after you tell them where you live. hth

  • @vplewis Where on the pricing page does is it give the actual monthly price of $3.99 per month? This is what I mean about the deceptive pricing practices. I've found out that it's also possible to pay a once-off upgrade fee (instead of a subscription) but, again, can find no mention of this on their pricing page or their website. If the pricing page were more upfront, i.e. it told you the options were $3.99 a month or $36 a year, that would be much clearer. The way the pricing page is at the moment is downright deceptive.

    The price in Australian dollars, I quoted above, is just through straight currency conversion and doesn't take into account any taxes or anything like that. Again, that's beside the point.

  • vplewisvplewis Junior Member

    @dagaz My apologies. 1Password seems to have revamped their pricing page to keep the relevant info private until after you've completely signed in for a trial. They may have a good reason, I just can't think of one. hth

  • BenBen AWS Team

    Team Member

    We wanted to make it very clear that paying annually is a savings over paying monthly, which may not be apparently to many if we were to phrase the options as you've suggested. So, that's why. :)

    Ben

  • @Ben If you "wanted to make it very clear that paying annually is a savings over paying monthly" than why do you not have the pay by month option on your pricing page? Why do you not have the upgrade price on your pricing page? To me only having the one price on your pricing page, which is annual fee disguised as a monthly fee, is anything but clear.

  • BenBen AWS Team

    Team Member
    edited December 2018

    We've chosen to present the information the way we do, after trying many different options, as it has proven to lead folks down the best path more often than the alternatives. Sometimes less is more.

    Ben

  • brentybrenty

    Team Member

    Personally, I find it's easier to compare 3$ to 4$ and see that paying annually saves me money. Showing it as 35.88 versus 4 to me makes it less clear that the former is the better deal. Just my two cents. :)

  • @brenty Comparing prices would be a valid argument if you put the price of the monthly plan on your pricing page - you don't. What you have is an annual charge disguised as a monthly plan - nowhere on your pricing page does it say how much customers are actually going to be charged (i.e. $36) when they sign up. Compare this to another service I recently signed up for, Private Internet Access . On their pricing page (https://www.privateinternetaccess.com/pages/2018-holiday-deal) they clearly show the price for the monthly plan and then use comparisons for their 1 year and 2 year plans. On these plans, although they compare the monthly prices for each plan, they also show the actual price a user will be charged. In comparison to this, your pricing page looks downright dodgy.

    I also don't like how you've essentially turned haveibeenpwned into an add for 1password. You guys are becoming the MacKeeper of password software. I've supported you guys for many years (bought v3 back in 2012). But this is the end of the line for me. I've now switched all my passwords to another password manager (that's one thing I do congratulate you guys for, the changeover was painless) and have paid standalone licenses (for Mac and iOS) far below what you guys are now charging as an annual fee.

  • Also, I've now deleted my 1password account, but can't find any way to delete my account from this forum. Can someone take care of that for me? Thanks.

  • brentybrenty

    Team Member
    edited January 1

    The prices for monthly and annual are side by side when you are actually choosing the plan for your account. If you'd looked, you would have seen that. :(

    And the rest of your comments are bizarre. We have a long history with Troy (Hunt, the owner of haveibeenpwned.com), and given that he has no objection to us using his service (for which he made an API expressly for this purpose), I really don't think it's your place to object. So I'm not sure where that's coming from.

    At the end of the day, if, for whatever reason, you have a chip on your shoulder that prevents you from enjoying using 1Password, we'd rather you use something else that better suits you. We want happy customers, not trapped ones. And I agree that the fact we don't lock you in is a testament to that.

    Anyway, I'll delete your forum account here in a minute, as you asked. I hope that you find happiness and security in this new year. Take care. :blush:

  • bobtomaybobtomay Junior Member

    I've been using 1Password for a couple of months short of 10 years at this point in time and as an admin for a Mac forum for many of those years was quite pleased with and highly recommended 1Password. Have to say, I quite agree with the above poster. I don't comprehend why you feel the need to not show all your pricing and purchase structure on the web site and hide it away until someone is ready to purchase before revealing all their options. You're only being half deceptive rather than all the way deceptive. There are many good companies out there that indeed do show and announce all their pricing structures and options on their web site and also show the value of the options they prefer their users to purchase. I've been holding out at 1Password 6 for exactly this reason on my Mac.

  • BenBen AWS Team

    Team Member

    Hi @bobtomay

    There are a number of things at play here and unfortunately nothing is as simple as you or I might hope it would be.

    Part of the difficulty is that rates can vary widely from location to location, even within relatively close geographic distance to each other. We don't collect enough information about people on our marketing pages to display a more complete picture. We did recently add a note about VAT to our 1Password.eu pages so hopefully it is more clear that the prices listed do not include VAT. There is a balance we have to strike between collecting too much private information about people who aren't even customers yet and displaying accurate pricing information. From the outside looking in it may seem like an obvious and easy thing to do, but it isn't an easy balance.

    Another difficulty is that listing larger numbers for prices tends to cause sticker shock. For whatever reason $2.99 / mo billed annually is easier to swallow than $35.88 / yr even though they are the same amount of money. Likewise we found it wasn't clear to folks when we tried listing the monthly rate when billed monthly as $3.99 that paying the annual rate of $35.88 was less. It is all about perception. I suppose it is the same reason it has become common practice to list prices as "$2.99" instead of "$3." Even though they are essentially equivalent, the former is easier to swallow. There is such a thing as trying to throw too much information at people. It can cause information overload and people pass instead of signing up even though they might otherwise find the pricing to be reasonable. Offering too many options is a problem, and we already have to contend with the various levels of service that we offer (e.x. individual membership vs 1Password Families vs 1Password Teams vs 1Password Business). Again, you might think this would all be obvious, but testing shows more options means more confusion, not less.

    (All prices used in this post are used as examples and aren't intended to be a quote of the cost of 1Password)

    Ben

  • @Ben > Another difficulty is that listing larger numbers for prices tends to cause sticker shock. For whatever reason $2.99 / mo billed annually is easier to swallow than $35.88 / yr even though they are the same amount of money. Likewise we found it wasn't clear to folks when we tried listing the monthly rate when billed monthly as $3.99 that paying the annual rate of $35.88 was less. It is all about perception. I suppose it is the same reason it has become common practice to list prices as "$2.99" instead of "$3."

    Personally, I think you should display $3.99 monthly or $35.88 annually, I am grown up enough to work things out myself and don't personally like when companies display information that is skewed in their favour.
    If it were up to me, I would have you display the information as $4 monthly or $36 annually and do away with the marketing deception that is displaying prices in a more favourable form for the company compared to the people.

    I also dislike that I cannot find the standalone pricing on your site. Could you please post a link to that.

    @brenty > _At the end of the day, if, for whatever reason, you have a chip on your shoulder that prevents you _
    I would prefer that you remain civil on your site, it is these kinds of responses (irrespective of it they were warranted or not) that made me seek out competitors products, you should rise above whatever people are commenting on. You have to understand that AgileBits does things in a way that gets up the nose of those that don't like subscriptions. And hiding all references to the availability of a standalone product is seen as deceptive behaviour. At the end of the day, displaying a monthly price that you cannot achieve monthly is deceptive.

  • brentybrenty

    Team Member
    edited January 8

    @smith9: While this discussion is not about "standalone" at all, but rather pricing for 1Password memberships (monthly versus annual), you can find pricing for licenses in the version 7 announcements for each: Mac and Windows.

    Getting back on topic, you suggest this is "skewed" in our favour, but if you look at it from the perspective of someone trying to save money, the opposite is true: we'd make more if we presented it the way you suggest, due to people choosing the "cheaper" monthly billing, when they would save 20% by paying annually. I don't think it's a matter of being "grown up" or not. A lot of research has gone into this area from psychological, economic, and usability perspectives, and we've also tried a lot of things ourselves. So far this is the best solution we've found, but we'll continue to monitor things and evaluate based on not only feedback from everyone, but also actual metrics from A/B testing. While I don't think you're in a position to speak for everyone, I do thank you for taking the time to share your own personal perspective. :)

  • Hello I am trying to find the price for the Business option. It says it is 7.99 when billed annually ($95.88), but what is it per month? example: If I need 14 users * $7.99 plan * 12month = $1342.32, but the company is factoring growth and wants to billed monthly what is the charge? 14 users * $X.XX ($8.99?) = $125.86 / month?

  • BenBen AWS Team

    Team Member

    Hi @l8rg8r

    I'd highly recommend reaching out to our business sales team at [email protected] with what you're looking to accomplish. They'd be in the best position to make recommendations. That said, generally, monthly invoicing results in 20% higher bills. Also our billing system is capable of handling dynamic situations and will adjust accordingly for team additions and subtractions.

    Ben

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