Average Price for Boxed Tax Software Increased Almost 33 Percent over the Past Five Years

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The average selling price of boxed tax software sold at U.S. retail has increased almost 33 percent since 2006, while unit sales have declined more than 25 percent, according to leading market research company The NPD Group’s retail tracking service.

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The advent of free tax software has forced the tax publishers to refocus their selling strategies,” said Stephen Baker, vice president of industry analysis at NPD.

The average selling price of boxed tax software sold at U.S. retail has increased almost 33 percent since 2006, while unit sales have declined more than 25 percent, according to leading market research company The NPD Group’s retail tracking service. In 2006, the average selling price for boxed software was $40, while by 2010 consumers were paying $52.

“The advent of free tax software has forced the tax publishers to refocus their selling strategies,” said Stephen Baker, vice president of industry analysis at NPD. “They now concentrate on software with more features and bells and whistles for the do-it-yourselfers who need more robust tax software.”

The results for the 2010 tax season saw an improvement over last year’s double-digit declines, but unit sales and revenue were still down. Unit sales of boxed tax software sold at U.S. retail declined 6 percent year-over-year (November 2009-March 2010). Revenue for boxed tax software declined nearly 7 percent. Average prices, however, stabilized from 2009 to 2010, after experiencing a 17 percent increase from 2008 to 2009. The entry-level segment of tax software continued to decline in importance as less than 20 percent of all 2010 sales were for less than $40, in contrast to 2006 when more than 80 percent of sales were below $40.

Intuit was the number one publisher in both units and dollars. The company also secured four out of the top five tax software SKUs.

About The NPD Group, Inc.
The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,800 manufacturers, retailers, and service companies rely on NPD to help them drive critical business decisions at the global, national, and local market levels. NPD helps our clients to identify new business opportunities and guide product development, marketing, sales, merchandising, and other functions. Information is available for the following industry sectors: automotive, beauty, commercial technology, consumer technology, entertainment, fashion, food and beverage, foodservice, home, office supplies, software, sports, toys, and wireless. For more information, contact us or visit http://www.npd.com/ and http://www.npdgroupblog.com. Follow us on Twitter: @npdtech and @npdgroup.

For more information:
Sarah Bogaty
+1 516 625 2357

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