Intuit hosted a meeting today for ProAdvisors about the new ProAdvisor Preferred Pricing Program (PAPP) announced earlier this week. Intuit and QuickBooks executives provided additional context and details on the changes as well as answers to top questions from ProAdvisors.
Prior to the meeting, Intuit received over 500 questions from ProAdvisors like you. During the 60-minute meeting, nearly 400 more comments and questions were submitted, ranging from topics around the new pricing strategy to expressions of frustration over QuickBooks Live.
Three Intuit executives - Alex Chriss, EVP and General Manager of Intuit's Small Business and Self-Employed Group; Ariege Misherghi, VP, QuickBooks Experts Leader; and Ted Callahan, Director, QuickBooks Accountant Leader - answered questions and comments.
This article, part one of a two-part series, will share some of the questions and answers specifically around the pricing changes. Part two, published on June 4th, addressed other topics discussed during the meeting that were not related to the pricing program, such as improving customer support for ProAdvisors, QuickBooks Live and the future of QuickBooks Desktop.
Question: Why is Intuit raising prices and changing the accountant discount?
According to Ted Callahan, Intuit is raising prices to invest in Intuit's vision to help small businesses be successful, "to continue improving the experiences that you (ProAdvisors) are telling us need changed and build more of the game-changing experiences that will unlock you to serve your clients better than ever."
Intuit is raising prices and changing the discount program to:
- Fund an investment in accountant support
- Improve current experiences
- Develop new, game-changing experiences for accountants and bookkeepers
- Connect more small businesses with ProAdvisors
- Create discount consistency across products
- Add discounts to more ecosystem offerings
Question: Why change prices now?
According to Ariege Misherghi, Intuit has been exploring changes for over two-years, looking at the continued growth and value of their offerings as a way to fuel the next round of innovations. However, the company delayed the pricing changes to minimize disruptions for accounting and bookkeeping practices through the pandemic. Misherghi added that the prior wholesale discount plan had been in place for eight years and that Intuit plans to have another durable discount program.
Question: What is changing?
1. Prices are increasing for QBO Essentials, Plus and Advanced:
- On July 15, 2021 for all new subscriptions,
- On or after August 1, 2021 for existing client-billed subscriptions, and
- On or after September 1, 2021 for existing firm-billed subscriptions.
2. The wholesale discount of 50% for QBO, QBO Payroll and QB Time is being discontinued for new subscriptions, upgrades and downgrades after July 15, 2021.
3. PAPP, the new discount program for ProAdvisors, has been established for new subscriptions, upgrades and downgrades after July 15, 2021. The new program will offer a consistent 30% discount and a 15% discount on employee and contractor fees in QBO Payroll and QB Time.
4. A new multi-company discount is available through PAPP that offers a discount for additional companies for two years.
5. Self Employed will no longer be part of the firm billing like it was under wholesale billing; however, Simple Start is eligible for the 30% discount through PAPP.
Question: What is not changing?
1. The current wholesale discount for active subscriptions added prior to July 15, 2021 will not change unless the subscription is upgraded or downgraded, at which time the the new discount through PAPP will apply. This means that for any subscription made before July 15, 2021, the "old" 50% wholesale discount will apply, but at the new price of the subscription. In addition, this 50% discount will apply for the life of the subscription unless it is upgraded or downgraded.
2. Current multi-company subscriptions will continue to be honored for the original term. There are some multi-company discounts where the prices were set for life and those will be honored for the life of those subscriptions. Multi-company discounts that had a term limit will automatically convert to the legacy 50% wholesale discount.
Question: How can you ask questions or give feedback to Intuit?