Marketplace Pricing - Monthly vs. Annual

[Albert Bétit]

Why does annual pricing cost more than the monthly price added up for one year? This is in the Marketplace pricing calculator.  It would seem the cost should be less or the same for annual.  I have noticed this on multiple add-ons.

[Dirk Ronsmans]

It could be because of the licence tier.

At least with Atlassian products you can choose a granular user number when paying monthly while when you switch to annual it will go in to the tier system (25-50-100-... )

When choosing monthly did you specify the maximum of a tier or a different number?

[Albert Bétit]

This has happened for every add-on I have looked at.  You can use this for an example:
https://marketplace.atlassian.com/apps/1221150/?tab=pricing&hosting=cloud

I am using 130 for number of users.  The monthly shows 146 = Annual 1752, while annual shows 1,950.

[John Funk]

Hi Albert,

That is very strange. Usually, the Annual cost is about 10 monthly costs. Can you share an example? 

[John Funk]

That's because the monthly is using a per user amount per month and the annual is using a tier. In this case the 100-200 user tier. As you increase in users closer to the 200 count, at some point the annual becomes less expensive. 

[Albert Bétit]

That makes sense, but if I were selling my wares on their marketplace I would not be happy with that calculator.  It has a simple toggle between month and annual, and explains little to the user.

[Daniel Lowe]

Break even for atlasian pricing seems to be at 2/3 of each tier i.e 200 tier annual license is cheaper than monthly if you have 167 users or more. if you have 166 users or less monthly is cheaper, this seems to apply to all their products and plugins