Keepmore – a Xero lookalike targets eBay sellers

Keepmore is a US product in the same space as Xero – simplified accounting through the web. ‘Accounting for the rest of us’ is their slogan, and they offer a package so that you “don’t need to know accounting, where to find deductions or keep up with tax laws”.
Their costs are a lot more reasonable than Xero’s at $19.95 a month, or $199 for 12 months. (To me Xero’s prices are sky high, and they would do well to drop them down and increase the rate of customer acquisition.) Keepmore offer several add-on features at a fee, including tax services – a nice way to get some price discrimination.

Another cool thing KeepMore is doing is automatic import of eBay transactions. I’ll leave it to the reader to assess the chances of that happening between Xero and Trade Me.

Keepmore’s usability is ok – the application does not use much of my screen, the UI is not super slick and – well I imagine the Xero’s star studded team will do a lot better.

Auctionbytes has more

Published by Lance Wiggs

@lancewiggs

8 replies on “Keepmore – a Xero lookalike targets eBay sellers”

  1. I would have to agree that Xero’s pricing is far to high at the moment for the bottom of the SME market or someone wanting to keep track of Trust accounts online. If your income from TM or some other source is around 30-40K spending 1.5% of this just on the subscription to the accounting software seems a little high.

    Glen

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  2. To me it is about value, not the cost versus a company’s income.

    The accountant (who doubles as my mother) for the company that employees me would not use Xero with the current price structure or SAAS approach. It is just too hard to justify versus MYOB on account of (sic) the pricing (she already owns MYOB, and can’t really on-sell it for much), the MYOB knowledge versus learning a new system, and the inability to use an online accounting system offline. YMMV.

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  3. Excellent post Lance – I’m fearful that the Xero expectations in terms of revenue will not be met given competition. Watch this space….

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  4. The Saasu.com guys (I am one of them) pioneered in the 100% pure online accounting and business management space 8 years ago. They have heaps more features, loads of users (including in NZ despite not being there officially) and are launching in NZ soon. Try their product NetAccounts free if you are looking for the ‘real deal today’ rather than waiting.

    Cheers, Peter.

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  5. I think the pricing of Xero at NZ$50 is absolutely fine for NZ businesses provided the functionality is there. I trialled it for one of our companies but customer records could not be kept at that stage (now added this feature). So to me the key is the functionality is there – probablly not quite there yet. Although the automatic bank statement downloads recently announced is worth it’s weight in gold.

    Comparing to MYOB – there is actually a maintenance support fee of $30 or $50 andyou have to buy the software to start and ongoing development of MYOB over the years has been next to no existent.

    If they can’t get $50 a month from a customer then that customer is probably not worth having in my view.

    I think they’ve got the price model just right – all features for one price especially.

    I think one price (versus the usual tier) lowers the risk of indecision by buyers. How often have you looked at plans where the lower plan didn’t have that key feature of the bigger plan you wanted so you didn’t buy?.

    And for accounting I think most Kiwi businesses would prefer a nz outfit supplying the service.

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  6. I think Xero is too expensive for small business; re GnuCash (free) or even multi company CashManager with invoicing for just over $1K. Xero annual fees of $600 over my cost of capital of 10% equate to an investment of some $6,000.00. I do not see Xero adding $5,000 more in value than CashManager.

    My suggested pricing approach would be to start all entities at $10 per month (putting it on par with CashManger in intrinsic value) plus a transaction volume fee (those active users pay more). If it’s a runaway success, then they could up the fees.

    It looks to me like the prospective target of $0.5M in customer receipts is a very long way off from the six monthly result. Amusing to read ‘directors remain focused on costs’ – I would have thought that would come secondary to revenue growth at this stage.

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  7. Update on the last post: After signing up for a trial, I decided it was nice to use and I could palm the bookkeeping off to those making the transactions in another town – so I’m in.

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