Tech inflation: Spark, Xero latest to raise pricing

Spark is ramping up its prices, among other tech service providers. Photo / Getty Images

Spark and Xero are the latest tech service providers to raise their prices, with rising costs blamed.

Xero has advised its customers of a raft rises today. For the cloud accounting firm’s Kiwi customers, its Standard plan pricing will increase from $66 to $71 per month from September 13 - an 8 per cent rise.

And its Premium plan will increase by 12 per cent from $84 to $94 per month. See Xero’s full list of price rises here.

Last month, Xero reported a $113 million full-year loss, including a $78m write-off on an underperforming acquisition. The firm early announced plans to lay off 800 people, or 15 per cent of its worldwide staff.

Spark is also rising prices, but unlike Xero it has not published a simple guide to which plans will increase in price, and by how much.

A Titirangi, West Auckland Spark customer forwarded the Herald an email from Spark that said his Essential Fibre Plus broadband plan, currently listed at $90 per month, would rise price by $7 - an 8 per cent increase - from August 1.

Asked if Spark prices were rising across the board at that rate, a Spark spokeswoman offered this general comment:

“Due to rising costs, we are increasing the price of our consumer and business fibre and copper broadband and landline plans, with increases varying depending on the plan.”

“Our wireless broadband plans are not impacted as we are able to offer more competitive prices due to not incurring third-party input costs.”

Spark offers wireless broadband - or fixed wireless - over its own mobile network, cutting landline wholesaler Chorus out of the loop. Spark, One and 2degrees have blamed Chorus price rises, in part, for rises to their retail rates.

Other recent price rises have included Microsoft New Zealand, which increased the price of an annual Family subscription to its 365 product by 8.5 per cent from $165 to $179, and Sky TV, which is increasing the cost of its Sky Sport Now Annual Pass by 12.5 per cent, from $399.99 to $449.99, from July 1.

In its most recent quarterly update, Stats NZ said inflation was running at 6.7 percent for the 12 months to March 2023.

Chris Keall is an Auckland-based member of the Herald’s business team. He joined the Herald in 2018 and is technology editor and a senior business writer.