As a Xero user I pay attention to user forums. For a year or two now forums have indicated significant dissatisfaction with Xero amongst small businesses, due to large and frequent price increases, continuing to add complexity and extra features not needed by them, and disregarding of their requests for improvements that will make a difference to them. They feel ignored, at the expense of medium and larger businesses. A clear inference (where not clearly stated) is that these smaller businesses will desert Xero in favour of another operator if/when someone offers an affordable package that suits their needs better. I'm not sure how much business Xero will lose if/when that happens - will depend on what % of their business is occupied by these businesses at the smaller end of the SME's.

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