Skip to content
Technology & Innovation

Tech providers look to pass on massive pricing increases. One Aussie Tech company thinks it’s wrong.

PERTH, Australia
Simon Ingleson, MD and Founder of RosterElf, thinks SaaS providers have simply become too fat.

The recent COVID pandemic has rapidly accelerated the adoption of software-as-a-service solutions by Australian small businesses. They have embraced online cloud solutions to drive efficiency, save costs and improve operations.

However, Aussie small businesses are now experiencing spiralling inflation, on top of lockdowns, floods, and bushfires, reducing already stringent margins. To make things worse, many tech providers have announced significant price increases, passing on cost to SMEs.

As July 1 draws closer, many SaaS tech providers are communicating large price increases, up to 50%.

RosterElf has decided to handle its business differently. Although it has experienced cost increases like any other business, its lean operation and product-led growth strategy has put the business in a unique position to help its customers. In this inflation-led environment, RosterElf is one of the few tech providers who has decided not to pass on cost increases to its clients, staying true to its mission.

Interesting times may lay ahead for the SaaS sector. Perhaps those that look after customers and have maintained lean operations will be the winners. Customers tend to have a long memory.

“Massive increases in fuel and cost of raw materials have already caused immense pain for small businesses. Our Customer Success team hears the stress and anxiety from our customers daily. Some are already doing it tough” commented Managing Director and Founder of RosterElf, Simon Ingleson.

“Now, small businesses are also looking down the barrel of a significant increase in the minimum wage which is causing even more anguish for many businesses.”

“Many Aussie businesses are only just starting to recover post lockdowns, floods and fires, and are facing some real anxiety about the future and how they will handle costs.”

“Australian small businesses are a resilient and tough bunch, there is no doubt. But the pain of rising inflation is really starting to hurt.”

“With the massive capital injection into the SaaS sector in the last two years, I think many providers have simply become too fat. They have vice-presidents of everything, google-want-to-be offices, fancy staff events and conferences, and have completely forgotten their goal is to provide low-cost cloud solutions for small businesses.”

“Businesses owners are now fearing even opening their inbox as they await more news that a supposedly low-cost cloud tool is increasing its pricing from July 1. It’s adding to the stress, and I think it’s wrong. SaaS, by its nature, should be a low-cost model that provides value, especially when times are tough.”

“RosterElf has an amazing group of shareholders who understand we need to support small businesses at this time, not to add stress. We have decided to buck the trend and advise all our customers that we categorically won’t be increasing pricing in the next 12 months.”

“This is because we have been careful with our model and use of funds, we can weather increases and support our customers. At the end of the day, this is what cloud software is meant to be about.”

“We were humbled and surprised by the support and gratitude messages we received by our customers because of our zero-price-increase decision.”

“Then, an amazing thing happened. Our customers passed on the news to their contacts, and we were flooded by new customers trialling our solution. I call it “Karma marketing”: treat your customers well when they need support, and they will return it tenfold.”

About RosterElf

RosterElf was created by business owners for business owners, to take the hassle out of rostering and managing staff. RosterElf is a magically simple, cloud based rostering software allowing your business to run smoothly and efficiently.


Source: RosterElf