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A pricing page says "$12 per user per month". That number is almost never what leaves your bank account.
What the headline price hides
Seats you are not using. Most teams pay for people who left, or for a plan sized for the team they expected to have. This is the single most common waste in software spending, and it is invisible because the charge never changes.
The annual discount is a loan you make to the vendor. Paying up front for a year typically saves 15–25%. That is real money, but you have committed to twelve months of a tool you have used for a week. A discount is only a saving if you would have stayed anyway.
The tier jump. Per-seat pricing is usually flat until one feature you need sits on the tier above. The honest comparison is not price-per-seat against price-per-seat, but what you would actually pay on the tier that does what you need.
How to use the number
Compare the annual figure against something concrete: what else that money buys, or how many hours it has to save to pay for itself. A tool at $720 a year needs to save roughly a day of someone's time each month to break even. Many do. Many do not, and nobody checks.
A habit worth having
Put a reminder in your calendar a week before any annual renewal. The worst software spending is not the wrong choice — it is the right choice from three years ago that nobody has re-examined since.