I think Xero's key advantage here is the amount of lock in that they have with the accountant market (presumably there are pretty good rebates to accountants who "sell" Xero to their clients as well as a degree of intertia from that community who has developed practice management procedures around the tool. I'm betting for many the increasing Xero subscription barely registers a blib relative to the rest of the accounting and book-keeping fees.

I know that I'd prefer to get my entities off the product as its not very user friendly and seems to need 3rd party plugins for most things meaning additional costs.

DISC: Very small Holding IRL (not in SM)

I only have anecdotal evidence but I'm of the understanding that accountants are getting pretty fed up as well.

I guess the key question is, as Xero increase their prices does the higher revenue more than offset any reduction in customer growth? I'm sure Xero management would know the answer to that and it may be favourable for whatever reason.

Not specifically regarding Xero, I'm sure some people will switch solution providers but it's not often that a business will change systems, especially if the only reason in price. Moving from on premise systems to the cloud has clear advantages, but moving from cloud to cloud is less obvious. Resistance to adopting a new solution comes from change management overheads, training costs, staff resistance, integration dependancies, capability gaps in similar offerings, packaged offerings, security, etc. Some staff will resign if they have to learn a new system because they see their career linked to their system expertise rather than working for a particular business.

Just some contrary things to think about.

Agree. That is the reason many people bank with CBA or ANZ...everyone knows there are better alternatives. But "Doing nothing" and paying 10% extra is much better than "lot of change" and 10-20% benefit.