Xero - price increases?! 10% for NZ customers

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#1396454 29-Sep-2015 11:10

Still cost effective for what it is for my use cases.

Price increases suck yes, but they continue to deliver me a valuable service and save me hours of time doing other returns. My time each month saved is greater than what I pay for Xero.

As always nothing is forcing you to use it and you can always go elsewhere.

networkn

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#1396458 29-Sep-2015 11:12

wasabi2k: Still cost effective for what it is for my use cases.

Price increases suck yes, but they continue to deliver me a valuable service and save me hours of time doing other returns. My time each month saved is greater than what I pay for Xero.

As always nothing is forcing you to use it and you can always go elsewhere.

Yes because switching accounting systems is such a doddle.

ajobbins

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#1396493 29-Sep-2015 11:44

Xero have spend hundreds of millions so far and AFAIK have yet to turn a profit. They can't keep losing money forever.

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graemeh

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#1396503 29-Sep-2015 11:45

networkn:
wasabi2k: Still cost effective for what it is for my use cases.

Price increases suck yes, but they continue to deliver me a valuable service and save me hours of time doing other returns. My time each month saved is greater than what I pay for Xero.

As always nothing is forcing you to use it and you can always go elsewhere.

Yes because switching accounting systems is such a doddle.

Actually it is if you use an accountant and they have you using the "cashbook" version of Xero. You just start using the new system from the start of the next financial year. This is something I will be investigating with my accountant early next year.

MikeAqua

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#1396529 29-Sep-2015 12:09

Exactly. They are currently making a loss and running the company on investors' cash.

They have identified that their market is mostly outside NZ.

ajobbins: Xero have spend hundreds of millions so far and AFAIK have yet to turn a profit. They can't keep losing money forever.

Mike

old3eyes

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#1396560 29-Sep-2015 12:36

MikeAqua: Exactly. They are currently making a loss and running the company on investors' cash.

They have identified that their market is mostly outside NZ.

ajobbins: Xero have spend hundreds of millions so far and AFAIK have yet to turn a profit. They can't keep losing money forever.

Wonder how long before they move off shore to be close to their main markets??

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CYaBro

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#1396956 29-Sep-2015 22:23

old3eyes:
MikeAqua: Exactly. They are currently making a loss and running the company on investors' cash.

They have identified that their market is mostly outside NZ.

ajobbins: Xero have spend hundreds of millions so far and AFAIK have yet to turn a profit. They can't keep losing money forever.

Wonder how long before they move off shore to be close to their main markets??

And then we'll pay even more!

Opinions are my own and not the views of my employer.

Disruptive

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#1396979 29-Sep-2015 23:08

Most of the upgrades Xero has done seem to be for the benefit of accountants preparing year end accounts.

They have brought in huge time savings in areas such as find & re-code and the new financial statement templates have also led to greater efficiency.

Many Xero users subscribe via their accountancy firm. Depending on when accounting firms signed up to Xero and how many clients they have under their Xero subscription accounting firm's receive discounts of up to 35% (unverified reports of 40%). It's up to the accounting firm whether they pass this discount on to the client or not.

Accounting firms pay nothing for Xero, nothing for the annual accounts templates and in most cases nothing for the practice management and tax software.

Perhaps there are accounting firms out there who don't pass on that (up to) 35% discount to the actual Xero users and perhaps they won't change that policy...wow they suddenly earn extra income for nothing!

Of course in an honest world, all the above savings and lack of costs for accounting firms would be passed on to the client and the extra monthly cost would be worth it.

mattwnz

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#1396981 29-Sep-2015 23:13

ajobbins: Xero have spend hundreds of millions so far and AFAIK have yet to turn a profit. They can't keep losing money forever.

But they could pay out dividends, but I believe their model is to grow as quickly as possible, so using that money to grow, so they are a high growth company. There are pros and cons with this, such as people saying that have never turned a profit. But they could if they choose to. The problem is that to succeed, they really need to do well in the US. But most NZ companies have really struggled with the US market, as it is one of the most difficult markets to break into. But they have done well so far overall, and their product has the benefit of being sticky, where it is isn't easy to move off it. But that is one of the difficulties they face in getting businesses in the US to switch to their system. It. will be interesting how they go in the next few years.

mattwnz

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#1396983 29-Sep-2015 23:16

Disruptive: Most of the upgrades Xero has done seem to be for the benefit of accountants preparing year end accounts.

They have brought in huge time savings in areas such as find & re-code and the new financial statement templates have also led to greater efficiency.

Many Xero users subscribe via their accountancy firm. Depending on when accounting firms signed up to Xero and how many clients they have under their Xero subscription accounting firm's receive discounts of up to 35% (unverified reports of 40%). It's up to the accounting firm whether they pass this discount on to the client or not.

Accounting firms pay nothing for Xero, nothing for the annual accounts templates and in most cases nothing for the practice management and tax software.

Perhaps there are accounting firms out there who don't pass on that (up to) 35% discount to the actual Xero users and perhaps they won't change that policy...wow they suddenly earn extradition request income for nothing!

Of course in an honest world, all the above savings and lack of costs for accounting firms would be passed on to the client and the extra monthly cost would be worth it.

I wasn't aware of any of that. I don't use it myself, but may check with my accountant and it may be a money savings on my annual accounts. I am still using an old version of MYOB, and it does what I need, and very basic and simple to use. Just looks like it was coded in the 1990's with the windows 3.11 type interface and buttons.

bigreddog

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#1397088 30-Sep-2015 09:29

Disruptive: Most of the upgrades Xero has done seem to be for the benefit of accountants preparing year end accounts.

They have brought in huge time savings in areas such as find & re-code and the new financial statement templates have also led to greater efficiency.

Many Xero users subscribe via their accountancy firm. Depending on when accounting firms signed up to Xero and how many clients they have under their Xero subscription accounting firm's receive discounts of up to 35% (unverified reports of 40%). It's up to the accounting firm whether they pass this discount on to the client or not.

Accounting firms pay nothing for Xero, nothing for the annual accounts templates and in most cases nothing for the practice management and tax software.

Perhaps there are accounting firms out there who don't pass on that (up to) 35% discount to the actual Xero users and perhaps they won't change that policy...wow they suddenly earn extra income for nothing!

Of course in an honest world, all the above savings and lack of costs for accounting firms would be passed on to the client and the extra monthly cost would be worth it.

And who pays for the Accounting firms to train and upskill their staff in Xero? Would you rather that clients were charged for that time directly?

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timmmay

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#1397094 30-Sep-2015 09:36

10%, not so bad. I'd rather see a new plan that has limited features and is cheaper again. Xero is great, but there is competition.

Disruptive

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#1397319 30-Sep-2015 13:10

bigreddog:
Disruptive: Most of the upgrades Xero has done seem to be for the benefit of accountants preparing year end accounts.

They have brought in huge time savings in areas such as find & re-code and the new financial statement templates have also led to greater efficiency.

Many Xero users subscribe via their accountancy firm. Depending on when accounting firms signed up to Xero and how many clients they have under their Xero subscription accounting firm's receive discounts of up to 35% (unverified reports of 40%). It's up to the accounting firm whether they pass this discount on to the client or not.

Accounting firms pay nothing for Xero, nothing for the annual accounts templates and in most cases nothing for the practice management and tax software.

Perhaps there are accounting firms out there who don't pass on that (up to) 35% discount to the actual Xero users and perhaps they won't change that policy...wow they suddenly earn extra income for nothing!

Of course in an honest world, all the above savings and lack of costs for accounting firms would be passed on to the client and the extra monthly cost would be worth it.

And who pays for the Accounting firms to train and upskill their staff in Xero? Would you rather that clients were charged for that time directly?

Current year updates are very intuitive and require little to no upskilling. It's the beauty of Xero.
Having one of your employees spending a day or 2 reformatting accounts to new templates and all staff doing an hour or 2 internal training on such new formats isn't a huge cost.

khull

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#1397343 30-Sep-2015 13:24

The arcade machines on site have to be paid somehow.

mattwnz

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#1397405 30-Sep-2015 15:29

timmmay: 10%, not so bad. I'd rather see a new plan that has limited features and is cheaper again. Xero is great, but there is competition.

The only thing is, how frequent will the price rises be. It does instantly increase revenue, but it also does lead to a bit of fear that if the price goes up again, that it costs the business more and more. But hopefully many pepple will see that it actually saves money, in the time it saves.

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