How many renew their software now?

[mcbreck]

For the last decade I always renewed as soon as tax season was over. I'm flush with cash sitting in an interest free account, why not get the lowest price possible?

 

This year I changed to another software company and when I called to buy she laughed and said "really? for next year?" So I'm guessing that isn't common? I got a nice price and am locked in if they raise prices.

[Pacun]

I love the question in your title. I always joke to my friends when they phrase it that way.

The answer to your question is 5.

 

[Catherine]

I renew my software asap - as in, I'll probably renew Drake online this week.  They give their best discount for renewing in (before?) May.  Since I know I'll be using it again next year, why not?

[Slippery Pencil]

I believe the discount on ATX in December is just as good as the one in April.  Last year I bought MAX on 12/1/21 for $1929 less a 20% discount plus a $95 fee to be their client for a total of $1,638.20.  $77.75 sales tax was added for a grand total of $1715.95. 

[Margaret CPA in OH]

20%?  That's great!  I think in the 20+ years I've used it, the biggest discount was 15% and now the renewal for 1040 package is just 12%.  I've always renewed in May but think I'll wait this year.  Maybe.

[mcbreck]

My major concern this year is that inflation is real and it isn't going away. I was able to lock in the renewal rate for 2021 and as a new customer I thought that was pretty good. I raised my fees last year and pretty much every product in my life that I buy raised their price and I'm guessing the software companies will be raising their fee considerably. I've never been charged sales tax on my tax software or it was included in the price quoted.

 

Why does ATX charge $95 to be their client? Is that like a car dealer putting a service fee on their new car price?

[ILLMAS]

The $95 fee is for technology/maintenance after they stopped shipping a CD.  Now imagine saving the cost of the software and preparing every single return by hand .   ATX cost is peanuts compared to ProSeries, plus Proseries charges $47 states.

[Yardley CPA]

1 hour ago, ILLMAS said:

The $95 fee is for technology/maintenance after they stopped shipping a CD.  Now imagine saving the cost of the software and preparing every single return by hand .   ATX cost is peanuts compared to ProSeries, plus Proseries charges $47 states.

I'm not sure where you are getting your information?  I was an ATX user back to the days of Saber.  Their cost, like almost every other technology company, have risen through the years.  For me it became cost prohibitive.  I switched to ProSeries for this past season.  I locked in their Choice 200 rate which provides me up up to 200 federal returns (all business and personal).  It includes every state as well, advanced calculations and unlimited use of their portal.  The cost for that package easily saved me $600 or more compared to what I would have paid for ATX MAX and their portal.  Granted, I'm limited to a total of 200 federal clients, but that is not an issue for me. 

I'm not suggesting ATX is inferior, I enjoyed using the program.  With that said, ProSeries has saved me time and has added efficiencies that have helped me and my clients.     

[Lynn EA USTCP in Louisiana]

This morning my account rep emailed with a link to the renewal; I responded asking for a greater than 12% discount, especially since the cost of the software is up 11%. 

[Margaret CPA in OH]

I got the email as well.  Perhaps I should call, too.  Did you actually talk with the rep?  Answer was?  I think I will call.  It's a new rep (I don't think I've had the same one more than 2 consecutive seasons) and the message does close with "(a)s one of our loyal customers..."  She is with the 'retention team' so maybe see how much retention is desired.

[ILLMAS]

1 hour ago, Yardley CPA said:

I'm not sure where you are getting your information?  I was an ATX user back to the days of Saber.  Their cost, like almost every other technology company, have risen through the years.  For me it became cost prohibitive.  I switched to ProSeries for this past season.  I locked in their Choice 200 rate which provides me up up to 200 federal returns (all business and personal).  It includes every state as well, advanced calculations and unlimited use of their portal.  The cost for that package easily saved me $600 or more compared to what I would have paid for ATX MAX and their portal.  Granted, I'm limited to a total of 200 federal clients, but that is not an issue for me. 

I'm not suggesting ATX is inferior, I enjoyed using the program.  With that said, ProSeries has saved me time and has added efficiencies that have helped me and my clients.     

Network and multi user edition?  

[Catherine]

Drake has a slightly different approach; largest discounts are for earliest renewals.  

[Christian]

I usually renew in May. The software is my largest cost but comes in at a reasonable cost when broken down per return. I raised my fees this year and received few complaints in no small part because everything else is exploding. My business is slowly being impacted by all the FREE tax stuff supported by no less than our local banks and just about everyone else. I have been able to keep my annual fee income fairly stable for a number of years and this year introduced a new lower fee for all these younger folks who have found free file a problem. I note that many of our local tax preps have folded and we face competition from all those cheating filers out there. I got one from a guy I knew thirty years ago since he had covid. He did not file any efiles and I soon found out why. No signature on the client return. He was cheating back then and still is. 

[Yardley CPA]

2 hours ago, ILLMAS said:

Network and multi user edition?  

ProSeries is loaded on my desktop, it's not network or multi-user.  I'm a one man shop. 

[Gail in Virginia]

I have ProSeries networked, with three users, unlimited efile, unlimited states, 1040, 1120, 1120S, 1065, 706, 1041, and 990.  I don't remember the exact price but when I changed it was not a lot higher than ATX. 

[mcb39]

I am thinking it over as well.  I have had the same sales rep for years and she is a sweetie, but I guess I will wait for her call and then decide.

[Christian]

I received a letter in the mail. I normally renew online but noticed this year no discount and looking back no discount last year. I'll contact my sales rep whoever that will be and talk this over a bit.

[ETax847]

I was notified that I have a new ATX Rep midway through Tax Season.   I still have yet to receive my renewal notice.  Not sure if I'm supposed to proactively reach out or continue waiting for my "early bird" deal.

[Margaret CPA in OH]

At least you were notified. I've not heard from my rep in a few years.  I received an email from Josephine Shaw of the retention team on April 19 then today from Michelle Gonzalez my new renewal consultant (Senior Sales Business Retention) both about renewing now!  Of course this is with a higher base cost and reduction from 15% to 12% early bird discount.  Sales rep?  What's that?  Or maybe once you are a customer, you only deal with renewal consultants.  This may be the first year I wait.

[Christian]

I checked my figures from like five years and this year will be the largest increase I can recall. It would have been in line if that 10% was taken off. I'm going to set back and bide my time. They offered no discount and increased the year over year 10.5%.

[Christian]

Well I have egg on my face. On close examination of the invoice I see my price is 12% less than the list price. Even so it is 10.5 % more which is a significant increase over past years. I want be in the business but for so much longer as the steady grind of working three months each and every day has finally begun to tax this ole bird a bit too much. Going forward I will likely increase all clients a small fixed dollar amount which they likely will not gripe about.

[Randall]

On 4/22/2022 at 12:31 PM, Lynn EA USTCP in Louisiana said:

This morning my account rep emailed with a link to the renewal; I responded asking for a greater than 12% discount, especially since the cost of the software is up 11%. 

Let us know if you get the bigger discount by asking.

[Lynn EA USTCP in Louisiana]

Randall, so far I have had no reply from my account rep to my email requesting a larger discount. I will be sure to post to the group should a response be received.

 

 

[ETax847]

On 4/21/2022 at 11:29 PM, Slippery Pencil said:

I believe the discount on ATX in December is just as good as the one in April.  Last year I bought MAX on 12/1/21 for $1929 less a 20% discount plus a $95 fee to be their client for a total of $1,638.20.  $77.75 sales tax was added for a grand total of $1715.95. 

What are they charging you this year?

[Margaret CPA in OH]

Here is the reply to my request to do better with the quote for the renewal:

Hello Margaret,

I understand that in previous year you had 15%  and it was probably due to the pandemic . As per this year the company is only giving 12% discount on Earlybird to all of our customers, sorry I am unable to make an exception .

Please let me know if you decide to renew your 2022 ATX package.

 

Have a great week!

This is not from a sales rep or renewal consultant, rather a person in Business Retention (lots of titles nowadays).  I had opined that it must be a challenge to be in Business Retention while simultaneously raising the price and reducing the incentive to pay early.  I had not done the calculation to realize the net 'discount' was a whopping 1%.

I just did the calculation for me.  It's actually a net of about 5% discount not counting tax.

Edited April 26, 2022 by Margaret CPA in OH
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