In the last few years, Xero have increased their prices by more than 30%.
And today they've announced yet more price rises from 1st July, which will mean their most popular plans have increased by nearly 40% since January 2021.
It's a common tactic with software companies: start with unsustainably low prices, use your investment money to subsidise those prices while you build a big customer base and then ramp up prices once everybody has committed to your product.
Are Xero doing this? We can't say for sure, but take a look at the pricing for various Xero packages since January 2021 which have seen 40% increases:
Date | Xero Starter | Xero Standard | Xero Premium 5 |
January 2021 | $25.00 | $50.00 | $65.00 |
March 2021 | $27.00 | $52.00 | $67.00 |
September 2021 | $27.00 | $54.00 | $70.00 |
September 2022 | $29.00 | $59.00 | $76.00 |
September 2023 | $32.00 | $65.00 | $85.00 |
July 2024 | $35.00 | $70.00 | $90.00 |
Increase | 40% | 40% | 38% |
Source: Way Back Machine, Xero Pricing Plans.
Xero are also completely removing their Payroll Only plan, which means the cheapest payroll option for 1 employee is now $70/month and for 5 employees it's a whopping $90/month.
In comparison, Easy Payslip is just $9.95/month for 1-4 employees. (For the sake of transparency, we've had one price rise since we launched in 2018: 10% in October of 2023.)
Xero's approach is basically the opposite of our approach here at Easy Business App.
We believe in sustainably building affordable, easy-to-use, well-supported, mobile software for Australian small businesses and their bookkeepers and accountants. When you win, we win!
Xero now expect the average small business in Australia with a handful of employees to pay more than $1,000 per year for their software.
Most people think of "the big 3" when it comes to their accounting software: Xero, MYOB and QuickBooks Online.
But there are better and more affordable alternatives. Companies that are based in Australia, with great local support (in Sydney) where you can pick up the phone and talk to a real person. Companies that offer affordable software built specifically for micro and small business.
Here's why Easy Business App may be a better fit:
For the typical Aussie small business, Xero is 3x more expensive than Easy Business App.
Click through to see a more detailed comparison of Easy Business App vs Xero.
Now is a great time to move!
Get started with Easy Business App today and you'll be ready to start the new financial year on July 1st and save yourself a tonne of money. No credit card required!
Easy Invoicing and Easy Cashflow are free right now (until 1st July, at which point they'll be $9.95/month each, or free if you're a light user) so there's no cost at all to get started.