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SAGE: YEAR FOR PRICE INCREASES Featured

Sage will be raising prices this year, after halting pricing action for the pandemic. The company did not discuss specific pricing changes in the recent first-quarter trading update given by CFO Jonathan Howell.

The company put increases on hold for 18 months because of the COVID-19 pandemic. Howell said during a webcast onoy that pricing changes will take place throughout the year. He also did not specify any products that would be subject to such action but the comments suggested all products and services are being considered for upward change. “We have a plan that is based an inflationary environment,” Howell said. He continued there will be “price increases only where there is a fair value exchange.” Increases will not have an impact on financial results until the second half, he said. Pricing will also be based companies’ ability to improve efficiencies with software that has increased capabilities. Sage believes any negative reaction to price hikes will be minimal.  “It will not have a material impact either on either our gross retentions rates or gross churn rates,” he said.

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