What is 1Password?
1Password is a password manager that helps businesses securely store, manage, and autofill passwords and sensitive information across devices. The platform uses encryption to protect passwords, credit card details, and personal data, offering a single master password to access all stored credentials.
For organizations evaluating 1Password, understanding the pricing structure and potential cost variability is essential for budgeting and procurement planning.
About Tropic's 1Password Pricing Data
The pricing intelligence and negotiation strategies in this guide are derived from Tropic's proprietary procurement database. Tropic powers procurement decisions with over $19 billion in software spend data, with 36.03% of Tropic users currently using 1Password. This real-world spend intelligence reveals actual pricing variability across organizations and identifies proven negotiation tactics that deliver savings.
1Password Pricing Overview
1Password offers three main business plans based on organization size, plus personal and family options:
Business Plans
Teams Starter Pack
- Price: $19.95/month for up to 10 users (paid annually)
- Best for: Small teams just getting started with password management
Business
- Price: $7.99/user/month (paid annually)
- Features: Unlimited passwords, shared vaults, access control, activity logs, 1GB document storage per user, 24/7 email support, free family accounts for team members
- Note: 90% of Tropic customers use 1Password Business
Enterprise and Extended Access Management
- Price: Custom pricing based on size and requirements
- Features: All Business features plus custom onboarding, dedicated account manager, advanced integrations (Okta, Active Directory), custom security policies, SLA, and access to Trelica via recent acquisition
Personal Plans
Individual Plan
- Unlimited passwords and items, 1GB document storage, secure sharing, 1Password Watchtower, Travel Mode, 24/7 email support
Family Plan
- Covers up to 5 family members (can add more), shared vaults, item recovery, 5GB document storage
Trial Period
1Password offers a 14-day trial for all plans.
1Password Price Variability
One of the most important aspects of 1Password pricing is the significant variability between what different organizations pay. Based on Tropic's procurement intelligence data:
- Pricing Variability Range: -17.39% to +18.52%
- Business Plan Unit Price Range: $69 (25th percentile) to $96 (75th percentile)
- Average Tropic Savings: +16% on top of previously negotiated prices
This 36% total pricing spread means organizations negotiating without benchmark data often accept "standard" rates while leaving substantial savings on the table.
Recent 1Password Pricing Changes
1Password implemented a significant pricing change two years ago that led to annual increases of 10-20% for existing customers. These increases have since moderated to a more standard 3-8% range in recent months.
However, 1Password typically doesn't match competitive pricing due to their market leader position in the password management space.
Payment Terms
Standard Terms: Annual upfront payments (paid annually)
Potential Savings on Payment Terms:
- Switching from monthly to annual billing can secure lower costs with potential savings of up to 20%
- Monthly or semi-annual payment options are available but require negotiation persistence to avoid uplift
- Payment term flexibility can be used as a bargaining chip if hard savings are difficult to achieve
How to Reduce 1Password Costs
1. Leverage Volume and Growth
- 1Password operates on tiered discounting based on volume
- At 1,000+ users, volume discounts typically apply when adding 400-500+ licenses
- Below 1,000 users, adding 25-50 users at renewal should yield cost savings
- Commit to growth rather than sharing 100% of anticipated usage upfront
2. Optimize Your Discounting Structure
- Push for unit cost discounts rather than one-time discounts to roll savings into next renewal term
- Note: 1Password's shifted discounting model has reduced historical discount levels across the board
3. Use Competitive Pressure
While 1Password is typically rigid on matching competitive bids due to their market position, they are more open to lowering unit costs when alternatives are introduced in negotiations. Key competitors include:
- LastPass (had security incident in 2022 causing customer exodus to 1Password)
- Bitwarden (cost-effective alternative)
- Keeper Password Manager (enterprise-focused)
- OneLogin (part of broader identity management suite)
- JumpCloud (recently rolled out password management with advantageous bundling)
4. Manage Licenses Effectively
- Request a user audit around renewal to ensure all licenses are utilized
- Restructure for current needs—potentially downgrade plans or reduce license counts
- Family and Guest users are typically free/no cost
5. Consider Multi-Year Agreements Strategically
- 1Password typically doesn't reserve additional savings for multi-year agreements
- They may consider 2-year agreements for potential ~5% incremental discounting or one-time discount (not guaranteed)
- Main advantage is positioned as price lock rather than cost savings
6. Time Your Renewal Strategically
- Leverage end of month/end of quarter for quick turnaround signatures
- Pull renewal dates early if aligning with 1Password's slower periods (summer months)
- Start renewal conversations at least 60-90 days in advance
7. Escalate When Necessary
- Loop in Finance or C-Suite to reinforce budget constraints
- 1Password has become more rigid at renewal, making internal escalation often necessary
- Connect leadership from both organizations for last-minute concessions
1Password Negotiation Best Practices
Establish Financial Pressure Early: Express budgetary constraints immediately and reference them throughout negotiations. Tie this to specific executive KPIs like 2025 budget targets or gross margin improvement.
Use Conservative Growth Positioning: Never share 100% of anticipated usage upfront. Leverage quarterly true-ups to negotiate better pricing on expected growth over the first 3 months.
Push Back on Discount Reductions: 1Password commonly attempts 5% discount reductions at renewal. Emphasize that maintaining the same total contract value (TCV) is mandatory for approval.
Remove Auto-Renewal Clauses: Ensure auto-renewal terms align with organization policy and remove the clause if possible for additional flexibility.
Why 1Password Pricing Varies So Much
The 36% pricing variability across 1Password customers exists because:
- Tiered Discounting Structure: Volume-based discounts create different price points for different organization sizes
- Negotiation Leverage: Organizations with competitive alternatives and strong negotiation strategies achieve better rates
- Market Position: As the perceived leader in password management, 1Password maintains pricing power
- Growth Commitments: Organizations committing to user growth receive better per-unit pricing
- Payment Terms: Annual vs. monthly billing impacts final pricing by up to 20%
Without access to procurement intelligence data showing what similar organizations pay, buyers typically accept higher "standard" rates.
Get the Best 1Password Price
Understanding 1Password's pricing structure is just the first step. Achieving optimal pricing requires benchmark data, strategic negotiation, proper timing, and executive-level budget pressure when needed.
Organizations using Tropic achieve an average of 16% additional savings on top of previously negotiated 1Password prices.
Ready to optimize your 1Password costs? Tropic's AI-powered procurement platform combines benchmark pricing data with expert negotiation services to help you achieve the best possible 1Password pricing for your organization.
