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.