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Pricing plan changes for New Zealand

Posted 3 years ago in Xero news by Victoria Crone
Posted by Victoria Crone

Thanks for being part of the Xero revolution. We couldn’t have got this far without the incredible support of New Zealand’s small businesses, bookkeepers and accountants. We’ll keep bringing you new features, partnerships and products to help run your businesses, beautifully. But we’ve reached a point where our prices no longer reflect the strength of Xero and how much it’s transformed in the last two years – please read on to hear why we’re changing our prices and what it means for you.

From 1 December 2015, these price changes will come into effect:

Cropped new direct table
All prices exclude GST, and current discounts and price protections still apply. Prices do not include payroll, and reflect the reduced premium plan rate effective 19 October 2015. Read about these changes on the Xero blog.

We know price increases are tough on small businesses. In the last eight years, Xero has made massive improvements and added many features, yet we’ve only increased our prices by $1 per month. We believe the new prices still offer great value, considering how much Xero has advanced and what’s to come.

We’re investing in innovation

We’ve channeled over $100 million into the Xero platform in the last two years and delivered a truckload of new features. It’s all aimed at saving you time and making life in small business more efficient, profitable and enjoyable. Because Xero lives online, updates and new features have been delivered automatically – unlike the clunky and expensive upgrades required for desktop software.

Highlights from our recently-added features:

  • Online quotes – send quotes online, driving faster and more timely decision-making, helping to generate work and grow revenue
  • Tracked inventory – track the value of your inventory and improve stock control, so you can make better decisions about what to buy and sell
  • Cash coding – efficiently reconcile cash transactions in bulk, saving time and increasing accuracy
  • Side-by-side files – enter transactions easily, faster and more accurately by seeing files alongside the records that need updating
  • Financial web – building banking connections beyond bank feeds to being able to push payments directly from Xero through to banks. Live with ASB, TSB and KiwiBank, with more to come
  • Xero for Android, iPhone, iPad, and soon, Apple Watch – receive notifications on your device when your bank accounts have been updated in Xero, giving you timely information to make decisions
  • Billable expenses – easily track and on-charge expenses incurred on behalf of customers, helping cash flow and profitability
  • Rural solution access rural supplier feeds and specific farming functionality in conjunction with our partners

And we’re not stopping there

We’re committed to innovation and constantly improving what we offer our customers. Here are some of the features we will launch in the coming months:

  • Invoice reminders – get paid more easily by automatically prompting customers that an invoice is due and reminding customers if invoices are overdue
  • Improvements to contacts (with Gmail integration) – get a customer-centric view of your customers, helping to improve relationships, retain customers and grow new business
  • Search – save time by searching across all transactions (except payroll) and contacts in Xero, and quickly navigate to the information you need

Plus there’s much, much more in the pipeline.

Partnering with the best in business

We’re focused on forging partnerships with local and global companies that bring dramatic time-savings and new opportunities to Xero customers.

We’ve brought our customers the power of world-leading platforms through partnerships with Microsoft, Apple and Google. With Xero Business Connect, users can receive invoices direct to their Xero account from some of New Zealand’s biggest companies, like Z Energy, Meridian Energy, and The Warehouse. We’ll soon team with Paymark to eliminate paper EFTPOS and credit card receipts in New Zealand and with Veda to build a new business directory to search and verify business credit and contact records within Xero.

We’ve also been working to simplify how Xero customers interact with the government, Statistics New Zealand and Inland Revenue on initiatives like NZ Business Number.

For more information about the price changes, see the FAQ’s, and feel free to ask questions in the comments section of the blog below. If you have further questions or require help, please contact the Xero team.

Thanks,

Vic Crone

Managing Director, Xero NZ

72 comments

Victoria Crone
October 6, 2015 at 6.35 pm

@Chris, without knowing your businesses I can’t provide specific’s on savings, however a huge number of the developments delivered in recent times have been focused on delivering measurable cost saving’s so it might be worth looking into some of our free training resources to make sure you are getting the most out of your subscriptions. Lastly, there is a discussion on the topic of greater transaction numbers for Starter in Xero Community, you can add your vote at the following link https://community.xero.com/business/discussion/131381. Thanks.

Victoria Crone
October 6, 2015 at 6.39 pm

@ Kate thanks for your feedback and we are very thankful for our partners and customers support in our growth journey. I put some notes above on pricing in NZ compared to other countries and the partnerships we have underway with Government, Enterprise and other tech companies to continue to give Small Businesses back time. Some of this is not available in other countries currently. As you can see from my reply to Chris and others, there is a discussion regarding increasing the number of transactions at the following link should you wish to submit your vote for this one. https://community.xero.com/business/discussion/131381.

Victoria Crone
October 6, 2015 at 6.41 pm

@Aaron, as we charge in arrears your invoice will have two lines – the period up to the price change on the 1st of December and the period after the price change. Hope that clarifies it. Thanks

Thomas Pickard
November 25, 2015 at 8.45 am

I have to echo a lot of comments on this post. A lot of those changes don’t actually benefit me as a small business, yet I’m expected to pay more now. I thought as business became more technology efficient, there should be cost savings, which would at least keep pricing the same.

Disappointed with Xero.

Liz L
November 25, 2015 at 8.58 am

Your latest price increase is yet another example of how the slogging mid-level businesses carry the cost disproportionately in just about every sector of business. The jump in service and price between the first and second tier pricing plans does not reflect most small-medium business needs vs expenditure. I will be voting with my feet when my business sells early in 2016 and look at other options as I think this is really unfair. There should be a level between the first and second tier packages.

Graeme
November 25, 2015 at 12.56 pm

I hope the price increase is going to increased development! Very average in the reporting area xero, very average! Perhaps improving this area to get more customers may help with the money you are still losing!

Dave Edwards
November 25, 2015 at 2.44 pm

Echo others here and really disappointed in the price increase. As subscription numbers increase I believe the cost should go down. As a small business I don’t use all the power features and won’t benefit so much from the so called improvements. This price increase is exactly the danger of using cloud based services. Being held to ransom (I say ransom as it will cost us a lot of money to pull the plug right now) I personally took the plunge to support Xero originally as an innovative New Zealand company but actually regret that now. It’s a major move to pull out of Xero but I am really looking at it, maybe not too economical to do it right now but I don’t want to be hooked into future price increases I have no control over. I don’t see to much development going on but certainly see money bleeding away into Xero salaries.
I have another smaller business that I’m definitely going to pull as its not cost effective at all to leave it with Xero.

Martin Straka
November 25, 2015 at 4.42 pm

Well said Dave!
I knew what it was all about when I read the email subject “…Xero NZ pricing changes…”. Very p.c.
I only started with Xero recently and thought it was a lot of money to pay – $50.00 gst excl for Standard plan. Now 10% price increase – that’s too bad. And guess what – the new prices start in five days time and Xero still advertise the old prices which are effectively invalid. How misleading! I am considering an alternative too. Let me know if you find something please.

Megan Firkin (Xero)
November 26, 2015 at 7.02 am

@Thomas & Dave, our development roadmap is heavily influenced by our customers and whilst we offer a number of what you call power features, a significant proportion of our developments and partnerships have been specifically developed for our core users and are based on delivering measureable time and cost savings. I know this has been mentioned elsewhere, however I really encourage you to take a look at our free training options to see if you are getting the most out of your subscription. Alternatively I would be happy to arrange for someone to talk to you directly, you can contact me on megan.firkin@xero.com. In the meantime, for more information on what has been delivered you might like to take a look at the feature timeline https://www.xero.com/nz/feature-timeline. In the last two years we have spent over $100 million adding new features, integrations and product upgrades – because Xero lives online, updates and new features are delivered automatically – unlike the annual upgrades required for desktop solutions.

Megan Firkin (Xero)
November 26, 2015 at 7.03 am

@Liz, in the last 8 years we have only increased our price by $1, yet we have transformed our services – delivering over 500 updates in the last year alone. Everyone at Xero fully appreciates that price increases are tough on small businesses, however like all businesses, we want to deliver value to our customers and that means continuous investment into our products and services – including free training so that you get the most of your investment in Xero. I would love to know more about what you think we could offer between the first and second tiers. If you would like to share and discuss I can be contacted on megan.firkin@xero.com.

Megan Firkin (Xero)
November 26, 2015 at 7.04 am

@Graeme, as mentioned above, in the last two years we have spent over $100 million on development with no intention of slowing down. On the reporting, can you please contact me on megan.firkin@xero.com as I know the team that works in this area would be keen to hear your feedback. Thanks.

John Robinson
November 26, 2015 at 8.01 am

Will move to SAASU in January. Only $15 for low cost plan without inventory. Sorry Xero!

Liz L
November 26, 2015 at 8.06 am

@megan your response is predictably corporate and apologist and I will take the time to respond directly to you in due course. However I would like to ask why, when you are so aware of the difficulties faced by small and medium businesses, you increase the first two tiers by 10% and there is no increase to the top tier – where no doubt the most features and upgrades are directed and of the most benefit?
If I am correct from your comments, the lower tier has received a $3.50 increase (including the past 8 years) the middle tier has received an $8 increase (including the past 8 years) and the top tier a $1 increase (including the past 8 years). I agree with @Dave comments entirely.

Megan Firkin (Xero)
December 2, 2015 at 5.51 am

@Martin, alerts regarding the price changes have been included in the subscription and pricing areas of our website since we announced the changes on the 24th of September. Would you be able to email me to discuss? megan.firkin@xero.com

Megan Firkin (Xero)
December 2, 2015 at 5.52 am

@Liz, having worked for a number of local and global Corporates, I can assure you that my reply and invitation to contact me directly with was genuine. I look forward to hearing from you and discussing further.

Megan Firkin (Xero)
December 2, 2015 at 6.00 am

@John, we are sorry to hear you are leaving us. We are confident that the pricing we set fairly represents the value of our service, however we accept that some people will have a preference for a lower cost solution and the trade-off that brings. Warm regards, Megan

Megan Firkin (Xero)
December 4, 2015 at 9.41 am

@Graeme, following on my earlier reply, just wondering if you have spotted the new reports section in the navigation? All the reports in this section have been released in the last 18 months. I would be really interested in your thoughts/feedback so please don’t hesitate to contact me megan.firkin@xero.com

dick fervent
March 22, 2016 at 5.30 pm

“We wanted to let you know that, for the very first time, we have conducted a review of our monthly subscription plans: and we’re making some changes to make our services work better for you.”

“we want to give you optional add ons”

BAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHHAHAHAHAHA

You are *** the little guy hard. edited for language

Megan Firkin in reply to dick fervent Xero
March 24, 2016 at 4.12 pm

@Dick, happy to reply to your post if you could outline your specific concerns.

Dirk M
August 25, 2016 at 11.53 pm

Just inquiring as to why my subscription has gone up $20 per month from June to July? Is it because the stocks are falling?

Megan Firkin in reply to Dirk M Xero
November 29, 2016 at 2.08 pm

@Dirk, did you find out why your subscription went up by $20? Feel free to email support@xero.com if you still need help. Warm regards, Megan

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