Xero delays price hike indefinitely amid COVID-19 fallout for SME customers
Xero has pressed pause on a price hike, saying the COVID-19 pandemic is already enough for SME customers to deal with.
Accounting platform Xero has indefinitely delayed a planned price increase in the wake of the COVID-19 pandemic, promising to provide at least three-months notice before any future bump.
The move, announced in an email to customers on Friday, comes after an earlier delay to the price increase in March which would have seen fees ratchet up by July 1.
That will no longer happen, and Xero has promised to provide customers 90-days notice before bringing back the increase, saying the coronavirus outbreak had done a number on customer cashflow.
Worth about $2 per client per month, Xero said it hopes the delay helps SMEs deal with cost pressures heading into tax time.
“We aim to make things easier for small businesses and hope this decision helps,” the company said.
“During these challenging times, we’ll do our best to let you know of any planned price increases at least 90 days in advance to help you manage costs and cashflow.”
The delayed increase applies to Xero’s Starter ($25/month), Standard ($50/month) and Premium ($65/month) plans, but not its $10/month payroll only package.
The accounting platform did not provide a date for when the increase would be brought in, but did not say it had abandoned the plan.
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