Do you present monthly and annual pricing side by side with a toggle on your pricing page, or do you show one by default? Which approach have you found causes less confusion for potential customers?

Based on the principles outlined in our pricing strategy book, Price to Scale, clarity is paramount when presenting pricing options. While both approaches (a side-by-side comparison using a toggle versus showing one plan by default) are common, we’ve found that displaying one default pricing structure tends to reduce potential confusion for customers.

Here’s why:

• Less Cognitive Load: When customers see just one pricing option (for example, the default monthly pricing), they don’t immediately have to compare multiple pricing schemes. This streamlined approach helps to prevent overwhelming them with too many numbers at once.

• Clear Focus on Value: With a single default, you can focus their attention on the key value proposition of your plan. If annual pricing matters (especially when it includes discounts or additional benefits), you can provide an easy-to-access toggle or a link that dives deeper into that option. This avoids clutter while still catering to those who want to see the different value points.

• Consistency with Customer Expectations: As discussed in our saas pricing book Price to Scale, many customers are already accustomed to seeing one primary price and an option to learn more about annual or other alternative structures. By aligning with these expectations, you can minimize confusion and facilitate quicker decision-making.

In summary, while toggles are useful, presenting one pricing option by default with a clearly accessible toggle for other billing frequencies tends to create a smoother, less confusing customer experience. This approach allows customers to first understand the core value of your product without the distraction of multiple pricing models right away.