Sage is to push up the price of Sage 50 Accounts by 70-90% for small business users this month.
The software company confirmed that the increase was driven by significant changes to the flagship accounting program, which represents a "major milestone" for the business.
The managing director of Sage's Accountants' Division, Paul Tooth, said that information on new features wouldn't be available until later in August.
Sage is moving its licenced-based pricing toward a subscription-based model. Customers will pay varying amounts for the code depending on factors such as whether they are members of the Sage Accounts Club.
“We’ve listened to customers and introduced a range of features that will transform the day-to-day operations of users and an array of payment options. Business owners can pay a perpetual one-off license fee or on subscription from as little as £25 per month, meaning they always have the latest version of the software," Tooth said.
He added that the release will a big step for Sage, and lead the developer's drive to support small to medium sized businesses and practices that want to work in the cloud.
AccountingWEB member AHB first brought up the price rise on the Sage 50 discussion group last week.
They said they received an email from their Sage business partner manager with details of the price rises.
According to AHB, the email reported rises of:
- Sage 50 Accounts Upgrade - currently £315+VAT - will rise to £526+VAT from 1 August
- Sage 50 Accounts Plus Upgrade - currently £455+VAT - will rise to £819
- Sage 50 Accounts Professional Upgrade - currently £600+VAT - will rise to £1,140
The email went on to explain that this "massive hike" falls in line with Sage's aforementioned subscription offering from next month.
"Anyone who’s anyone that is even remotely considering upgrading needs to do it this month to get the cheaper prices and they will get 2015 Accounts on release as part of that deal," the email read.