tooskinneejs Posted February 8, 2015 Share Posted February 8, 2015 This has historically been a great business, but there is an interesting revolt going on among TurboTax customers. Out of 2,400 reviews of it's TurboTax Deluxe software, 2,100 of them are 1 star ratings (out of 5 stars). Customers are absolutely blasting them for moving schedule C, D, and E capabilities that have always been in the Deluxe version to the more expensive Premier version of the software (which costs $30 more). Tons of people have bought Deluxe as they always have done, only to find out they would need to "upgrade" to be able to fill out their returns. Looks like a majority of people are switching over to H&R Block's version of the software, which costs a lot less. The way it looks, management of Intuit attempted to increase their revenues and now are seeing their customers aren't as "sticky" as they thought they would be. Real time destruction in action... http://www.amazon.com/TurboTax-Deluxe-State-Software-Refund/product-reviews/B00NG7JVSQ/ref=cm_cr_dp_see_all_btm?ie=UTF8&showViewpoints=1&sortBy=bySubmissionDateDescending Link to comment Share on other sites More sharing options...
LC Posted February 8, 2015 Share Posted February 8, 2015 Good observation. In the short run this could cause users to transition to alternatives (namely taxact). But in the long run this shows the level at which tax software can monetize its customer base. Link to comment Share on other sites More sharing options...
bookie71 Posted February 8, 2015 Share Posted February 8, 2015 We have used Lacerte (an Intuit company) since the mid 1980's for our CPA practice. This will probably be the last year as they are pricing themselves out of the market. Link to comment Share on other sites More sharing options...
Guest Schwab711 Posted February 8, 2015 Share Posted February 8, 2015 What if Congress actually simplifies the tax-code someday. Will all of these tax-prep software companies go to or near $0? Anyone worry about possibility? Link to comment Share on other sites More sharing options...
wescobrk Posted February 8, 2015 Share Posted February 8, 2015 This has historically been a great business, but there is an interesting revolt going on among TurboTax customers. Out of 2,400 reviews of it's TurboTax Deluxe software, 2,100 of them are 1 star ratings (out of 5 stars). Customers are absolutely blasting them for moving schedule C, D, and E capabilities that have always been in the Deluxe version to the more expensive Premier version of the software (which costs $30 more). Tons of people have bought Deluxe as they always have done, only to find out they would need to "upgrade" to be able to fill out their returns. Looks like a majority of people are switching over to H&R Block's version of the software, which costs a lot less. The way it looks, management of Intuit attempted to increase their revenues and now are seeing their customers aren't as "sticky" as they thought they would be. Real time destruction in action... http://www.amazon.com/TurboTax-Deluxe-State-Software-Refund/product-reviews/B00NG7JVSQ/ref=cm_cr_dp_see_all_btm?ie=UTF8&showViewpoints=1&sortBy=bySubmissionDateDescending Brings to mind Lynch's quote: "buy a business so great that even an idiot can run it, because sooner or later, one will" Paraphrase from memory but certainly seems to fit this one. Link to comment Share on other sites More sharing options...
jrunner Posted February 8, 2015 Share Posted February 8, 2015 This piece of news caught my eye as well: http://fortune.com/2015/02/06/turbotax-intuit-tax-filings-halt/ Link to comment Share on other sites More sharing options...
mttddd Posted February 9, 2015 Share Posted February 9, 2015 What if Congress actually simplifies the tax-code someday. Will all of these tax-prep software companies go to or near $0? Anyone worry about possibility? Haha theres very little demand for this to happen and if anything demand to make it more complex. There is quite a bit of vested interest in keeping the code complex it supports a huge industry not to mention it allows all kinds of companies/wealthy individuals to find loopholes. Also in the last few years they have made it free for individuals making under 55k (i could be wrong on that number but ballpark) to file and tax returns for those simple filings are incredibly fast. That in and of itself made the process cheap and rewarding for a large portion of americans. So now you have a large/well funded group that wants to maintain the status quo and the majority of Americans dont care because now they get their tax returns within a week of filing Link to comment Share on other sites More sharing options...
kab60 Posted February 9, 2015 Share Posted February 9, 2015 Searching the reviews I get 921 hits for 'Block' (H&R) and 77-100 hits for TaxAct and 'Tax Act'. H&R seems fully priced, whereas Blucora got a bit more interesting. If only they'd stop destroying capital. Link to comment Share on other sites More sharing options...
jrunner Posted February 9, 2015 Share Posted February 9, 2015 There is some risk that the IRS might some day have all of the necessary tools for prep on the website. Most other developed countries have this, and there is no need for a third party. I suspect that even in that case a third party could add value, but their customer pool would shrink. Link to comment Share on other sites More sharing options...
lucasnascimento Posted August 25, 2019 Share Posted August 25, 2019 +210% since the last post here. Ultra-high ROIC, good growth, but not much operating leverage. What's priced in today? Link to comment Share on other sites More sharing options...
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