Sharesies - is there more to the latest pricing update?

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Forums › Finance and wealth management › Sharesies - is there more to the latest pricing update?

tchart

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#302793 21-Dec-2022 10:00

Received an email from Sharesies this morning stating;

1. Increased cap on transaction fees

2. Increased currency exchange fees

3. A new "closure fee" (charged in specific situations?)

4. A fee for transfering NZX investments out of your portfolio

I could be reading more into this but changes like that raise alarm bells in terms of a companies sustainability.

Am I just being paranoid?

wellygary

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#3012656 21-Dec-2022 10:17

No, its standard operating procedure for "cloud" companies,

1) Start out with really break even pricing, drag a critical mass of customers on board,

2) Get customers accustomed to using your service, and hence make them sticky,

3) increase prices,

4) see how many leave

5) look to increase prices again...

6) Profit, rinse and repeat

Netflix, Disney+ Trademe Xero et al all operate a similar model...

freitasm

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Geekzone

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#3012657 21-Dec-2022 10:20

wellygary:

Netflix, Disney+ Trademe Xero et al all operate a similar model...

Xero seems to be really good at increasing prices every six months.

hsvhel

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#3012658 21-Dec-2022 10:21

freitasm:

wellygary:

Netflix, Disney+ Trademe Xero et al all operate a similar model...

Xero seems to be really good at increasing prices every six months.

And delivering the same value as before the increase!

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cokemaster

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#3012667 21-Dec-2022 10:59

Very disappointed to see them increasing the fees the way they have.
Will be looking at alternatives, even for the kids accounts.

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Nate001

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#3012862 21-Dec-2022 18:34

Interesting to see if many people follow through with the threat of leaving. Great business model as you can't easily leave without either paying a fortune to transfer out your NZX shares, or sell all your ASX/US shares.

cokemaster

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#3012864 21-Dec-2022 18:37

I’ve just cashed out three portfolios (myself plus children) this afternoon. Waiting for sharesies to release the funds.

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Kraven

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#3013001 21-Dec-2022 21:26

Money King NZ has put up an article about this. It gives good examples on how the fees impact certain types of investors and also suggests alternatives.