Hi indie hackers!
I'm considering adding a pricing table showing a range of options with Annual vs Monthly prices with a toggle switch like this example:
The price shown is the price per month if payed by month and if you click the switch you see the price per month if paid annually.
Having a table of options is helpful as you can implement price anchoring - i.e. having a high priced option will lead to more sales of a medium priced option, however I am wondering if there is an advantage to displaying the price in this way.
My thoughts on this so far:
Showing annual price as price per month could be good as it can clearly be seen as a smaller amount, and is perhaps less scary than seeing the "big" price of the total of a whole years payments.
Showing the Annual price in monthly payments could be perceived as misleading or tricking the user as the do not see the full price that they pay at checkout.
I would be interested to hear if anyone has tried this pricing table structure and whether it had a positive or negative effect on website conversion rate?
Also if anyone has any found any research on the effectiveness of this technique I would love to read it!
Thanks in advance!