Price Rise during economic hardships

JacquieR
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Price Rise during economic hardships

Is now the best time for MYOB to raise the price $10 for Accountright Plus (just as one example of the price increases)?  It was a hard step to $110 for many of my clients when that happened, now the montly cost is rising to $120 per month.  My first wave of complaints came at $90 per month and that was before the Covid pandemic hit.  Most of Australia is in a lock-down right now, with so many businesses unable to earn income to pay for staff and premises rent let alone the software cost rise?  We know prices rise, however, are you also letting off staff? I haven't had contact from a Partner Manger in months.  I humbly request that MYOB does not raise the monthly charges this year and give many of the struggling businesses and their bookkeepers a break, it will benefit MYOB in the long run to show some compassion right about now.

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Steven_M
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Re: Price Rise during economic hardships

Hi @JacquieR 

 

Thank you for your feedback.


Last year we did hold off on a price increase for our subscriptions due to obvious reasons. We also implemented a more open Financial hardship policy should those users require that policy. As the economy has picked up we have regretfully announced a price increase of subscriptions coming in later this year. We do understand that some users and businesses are still doing it tough at this time. If you do feel that you or your clients may be eligible for that Financial Hardship Policy we do recommend checking out MYOB Financial Hardship Policy. for more information

Kind regards,
Steven

MYOB Community Support

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JacquieR
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Re: Price Rise during economic hardships

Thank you for your reply.  Have you read some of the POSTS here over the last couple of years relating to MYOB price rises?  Even when it went up to $110 per month that was a big fire to put out with clients, the explaination being all the on-line updates and ATO compliances.  I've had a few queries asking me to look into other forms of accounting software of late, so I'll ask again, is now the best time to jack up the cost to $120 per month?  I'm not sure the economy is picking up, as a portion of Australia is in yet another lock-down thanks to Covid.  I will look into the fiancial hardship applicaiton for my all my clients if the price is raised and/or search for an alternative answer.

IanChait
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Re: Price Rise during economic hardships

@Steven_M 

 

With all the lockdowns around the country, small business is stuffed. There isn't much Government support, and what is available, is extremely complex to get. 

 

So, while I understand price rises are inevitable, and the company needs subscription revenue to survive, it is wrong to say the economy has picked up. Maybe for big business, but certainly not for small business, who are the predominant user base.


Regards
Ian Chait CA
Certified Consultant Melbourne
P/M 0417 479 585
Email ian@myfc.com.au

SME1
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Re: Price Rise during economic hardships

Yep this is a mongrel act from a company purporting to support and advocate for small business.  My Essentials pricing has just risen 3.3% while small businesses are struggling to stay afloat.  Only near monopolies like MYOB are able to use their market position to profit while others can't.

BTW the govt website says "Over the twelve months to the March 2021 quarter, the CPI rose 1.1%."  Is this MYOB price rise THREE times CPI or have I missed something?

Steven_M
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Re: Price Rise during economic hardships

Hi @SME1 

 

Sorry to hear that you do feel that way, we do understand that some users may be significantly impacted by this situation due to COVID, lockdowns, and other events. We do encourage those users to consider the Financial Hardship Policy that we do offer.

 

If you do wish to have further discussions around our recent price increases we do recommend contacting our  Account and Billing phone-based team on 1300 793 130.

Kind regards,
Steven

MYOB Community Support

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Caddy
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Re: Price Rise during economic hardships

Price rises and current economic circumstances aside, I don't know of another retailer that can without question put a 10% price rise into action each and every year. If MYOB had to rely on month to month purchases rather than the subscription model now in place small businesses wouldn't stand for it. They certainly wouldn't be able to gouge businesses if there was an alternative. 

RP101
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Re: Price Rise during economic hardships

We've been in lockdown for 6 weeks and MYOB decides this is a good time to to hit us with a 10% increase... Skip last year's increase so they hit us with 10% this year. I originally purchased MYOB outright, and then they said no you have to pay subscription - and now the yearly subscription is more than I originally paid for the software!

 

Clever marketing MYOB! Well done!?!

BEER
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Re: Price Rise during economic hardships

We all wouldn't mind if we were getting value for money... But the bugs are not being fixed and the new versions are not being tested properly before they are being released...

 

I wonder if ASIC would like to look at MYOB business practices

DavidDNCS
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Re: Price Rise during economic hardships

I also received an email recently indicating that there will be an increase in MYOB Pricing soon.

 

When I received it, I thought about how all of my customers were going to react to yet another price increase.

The inflation rate is barely 2%, we are in COVID and lockdown in many locations throughout Australia and this year small businesses are no longer being supported by Job Keeper.

 

I know I will be getting many customer complaints soon as a consequence.

 

The email explaining that you have improved the feature set is valid to an extent, but all of your customers are also paying every year and every month now for these updates and improvements as part of their subscriptions.

 

Many of my customers have already left or may now leave for alternatives like XERO.

 

XERO seems to providing extraordinary incentives to tax agents and accountants to get clients to move across and by now increasing your fees, another whole swag of customers will leave you.

 

You have a great product, but also removing the option to purchase AccountRight Basic from your range is another cause of frustration for many of my customers.

 

I think it would be very wise in the current climate for your marketing and sales team to actually reconsider this decision.

 

You may gain some more money, but you will also lose some customers to others and these are much harder to get back once they have moved on.

 

There are many factors that small businesses look at, and in a timeframe like this, where over half of Australia has recently been in lock down, do you really think that with extra time that some admin staff currently have that they will not take the opportunity to review other alternatives when they are trying to reduce costs not increase them.

 

It is great to mention in recent replies that you have a MYOB Financial Hardship Policy. What that means to a small business is there is yet another hurdle to go over to get relief. Businesses are increasingly tired of hurdles. 

 

They need sympathy and understanding, not more forms and paperwork, and the 10% increase is way beyond inflation and just comes across as MYOB as being inconsiderate and greedy and that MYOB does not really understand what everyone is going through.

 

What makes it harder for us as resellers and partners is that it was only last year that there was an increase of your subscription fees, so going through this again so soon will not go down well at all with our loyal customers.

 

All your price increase means to them is that they will talk to other owners, businesses and discover that they can perhaps move to other alternative offerings. Do you really want them to question what accounting systems they are using when so many of them have time to review their costs?

 

We have been an active reseller, developer and supporter for over 10 years but it is hard out here in the real world. I have our customers complain constantly of MYOB wait times of over 15 minutes to get telephone support.  We quite often provide this assistance because they are frustrated. If they are paying more they should get better support also.

 

In conclusion all I can finally say is please really think about it. I know you are a Company and shareholders like receive dividends but price increases need to be realistic, otherwise you may find you do not have some of your customers at all.

 

David Nyssen

DN Computer Services Pty Ltd

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