Another price increase from Xero – 4 straight years of price increases sends social media mad?

It’s interesting how negative the sentiment is on Linkedin and Facebook when you start seeing annual price increases for Xero.

MYOB has been smashed in it’s social media marketing campaign for their MYOB Solo software but Xero’s CEO was smashed on Linkedin for the continuing increases in price of Xero.

You can push the innovation angle for so long but it seems like Xero are trying to test how much their clients can really afford.

There is a link in their price increase email to their innovations page and I wonder if they did the price increase just to get more traffic to that part of their website!?

The question is:

1. Is that innovation worth the cost to your business and do you use those features, and
2. What are your alternatives.
3. Do you need all this extra functionality that Xero is promoting?

These increase in subscriptions seem a lot like the recent Black Mirror episode “Common People” where users have no real choice but to keep paying more and more for the software because it is hard to find an alternative.

If you are into dark comedy or want to see how bad things can get from a technology perspective this episode has a very interesting take about subscriptions and premium services – wait until you when the subscriber starts talking about sponsored products!

Xero justifies it’s price increase using Innovation

Xero did a great job with an earlier price increase by telling their users about the massive gain they received with the inclusion of Hubdoc in their Xero feature list.

It was portrayed as a massive saving compared to the monthly fee and it worked very well at a time when other software companies were simply increasing their subscriptions with bland corporate notification emails.

They’re pushing the innovation angle again but users are pushing back.

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