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Tax-Software Sales, Revenue Decline

4/21/2010 11:05:06 AM Eastern
Port Washington, N.Y. - With Tax Day now in the country's collective rearview mirror, The NPD Group reported mixed results at best for boxed tax-preparation software sales.

NPD reported the average selling price (ASP) during the 2010 tax season for the software was almost flat, but ASPs have increased 33 percent since 2006.

However, offsetting this increase is a 25 percent decrease in units shipped during this same period. Year-over-year unit sales decreased 6 percent, with revenue declining 7 percent.
Boxed Tax Software Average Selling Price November - March  
2006 2007 2008 2009 2010
$40 $46 $45 $53 $52


Source: The NPD Group/Retail Tracking Service   

Stephen Baker, industry analysis VP at NPD, blamed the availability of free tax software.

"The advent of free tax software has forced the tax publishers to refocus their selling strategies," said Baker, adding "They now concentrate on software with more features and bells and whistles for the do-it-yourselfers who need more robust tax software."

Top-Selling Boxed Tax Software Based on Units November 2009 - March 2010  
Item Average Selling Price  
TurboTax 2009 Deluxe Federal +State +e-File   $50
H&R Block At Home 09 Deluxe                                                          $39  
TurboTax 2009 Home & Business Federal +State +e-File                 $85  
TurboTax 2009 Premier Federal +State +e-File                                   $75  
TurboTax 2009 Deluxe Federal +e-File                                               $41
Source: The NPD Group/Retail Tracking Service 
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