Xro - xero

[kura]

quote:Originally posted by warthog


Who said Xero wanted income before 300307? Maybe their current goal isn't income?

Let me guess, the reason you get up and go to work in the morning, is beacuse it is for the overall benefit of humankind, and has absolutely nothing to do with that insignificant little detail called "income" ?

[warthog]

quote:Originally posted by Dazza

i like the part 'money raised to give to directors @ 4% interest so they can buy the shares'

Actually this is relatively common practice around the world. Other ways to achieve the same thing, with less risk to directors, is to issue options.

[warthog]

[quote]quote:Originally posted by kura

Why would I want to transfer my bizz away from MYOB, to a SaaS service which has the potential to cost me a lot more in the long run ? Just can't see anything compelling at all myself. The cheapest XRO option is $50 per month, what does MYOB cost now (about $500 ? ) I purchaesd MYOB about 6 years ago, (got sick of doing everything on a spreadsheet) if I had been using the XRO service over the same 6 years that would have been a total cost of $3,600

Current Xero pricing may or may not reflect eventual pricing.

If things change, MYOB will charge you for an upgrade. It's part of the revenue model. Xero will make the change, and you keep going.

At some price-point, Xero will make sense for busy people. We kiwis are world-famous for wanting to do everything ourselves and forgetting that if we stuck to our knitting, we would earn more. Same goes for tax avoidance.

[warthog]

quote:Originally posted by kura

quote:Originally posted by warthog


Who said Xero wanted income before 300307? Maybe their current goal isn't income?

Let me guess, the reason you get up and go to work in the morning, is beacuse it is for the overall benefit of humankind, and has absolutely nothing to do with that insignificant little detail called "income" ?

No offence intended but there are times for everything. I reiterate - what is the point in having an online service if sudden popularity means that the servers are hammered so bad they fall over?

[kura]

quote:Originally posted by warthog

quote:Originally posted by Dazza

i like the part 'money raised to give to directors @ 4% interest so they can buy the shares'

Actually this is relatively common practice around the world. Other ways to achieve the same thing, with less risk to directors, is to issue options.

Quite right, if the worst happened and went belly up, who would want a loan that could be attacked by liquidators ?

Regards their pricing & bizz model, I would like to see them charge minimal (or zero) fees for the basic service, then make their money out of advertising/support/additional services. Owners of SME's would be a marketers delight, just think of that buying power logging on to your website every other day. Team up with an enterprising accountant, and you would have a one stop shop for SME compliance issues. (Someone might do it one day)

Now a free service, that sure would put a strain on your servers !

[warthog]

quote:Originally posted by kura

quote:Originally posted by warthog

quote:Originally posted by Dazza

i like the part 'money raised to give to directors @ 4% interest so they can buy the shares'

Actually this is relatively common practice around the world. Other ways to achieve the same thing, with less risk to directors, is to issue options.

Quite right, if the worst happened and went belly up, who would want a loan that could be attacked by liquidators ?

Regards their pricing & bizz model, I would like to see them charge minimal (or zero) fees for the basic service, then make their money out of advertising/support/additional services. Owners of SME's would be a marketers delight, just think of that buying power logging on to your website every other day. Team up with an enterprising accountant, and you would have a one stop shop for SME compliance issues. (Someone might do it one day)

Now a free service, that sure would put a strain on your servers !

Pricing: who wants to watch ads or be marketed widgets when trying to get your accounting done? The ads would drive a hog to drink.

Free: if you pay for something, you can expect something in return. Try complaining (not that complaining about an accounting tool is very useful - you just want the damn thing to work) about something you got for free. Get you anywhere?

Certainly, a cheaper option that would attract interest from those not wanting to go the whole hog (sorry) and then once their data is there it's easy to continue or upgrade as the case may be. However, the time for that may not be now. Remember, if you start with higher pricing, you always have the option of lowering your prices. You can guess what happens in a competitive market if you start your product off cheaply and raise pricing as you start to build marketshare ...

[Mothman]

There is no reason I would think of to invest in this IPO over better risk/reward options out there. My prediction of share price: Stagnation (unless the boys selling the business prop it up)

[contrarianinvestor]

Looking at the cash flow statement I see XERO receipts from customers! $55 million seems excessive for projected revenues of only $550,000. Even if projected earnings were $550,000 that would have given a P/E of 100! I will be more fun gambling my money at the TAB ($5.50 for SA to win the RWC!)

[lakeside]

Well it is a start up from nothing so it will be all go to get it all going in NZ, then Aus and UK. Some risk, a lot of faith needed but potentially big gains.

42 below led the way with IPO of a non operating company.

There must be something different from Quicken, MYOB which have internet access parts but are not fully internet based.

Might be how they get income - eg the trademe type thing where you pay bit by bit and have lots of advertising but no up front fee. Ie a free service. That could appeal to Kiwis.

[kura]

quote:Originally posted by warthog

No offence intended but there are times for everything. I reiterate - what is the point in having an online service if sudden popularity means that the servers are hammered so bad they fall over?

No offence taken, but rather than getting into a discussion over needless details, the real point of my arguement was that at listing of IPO there will be 55 mill $1 shares on issue, of which the public will "roughly" own 15 mill, meaning the existing owners are rewarded with holding the remaining 40 mill, if the idea was that brilliant then fair enough, maybe their bizz model is worth $40 mill.

Trouble is that I'm sure that a few of us could come up with an even better bizz model, just by sitting round a BBQ one afternoon, and throwing round a few ideas.

Disc: Would love to have $40 million for every BBQ I've been to this year !