Quicken's decision to outsource its sales operation to distributor, Marketing Results is apparently paying dividends. The accounting software vendor's Quickbooks 7 release accounted for 59 per cent of all retails sales for finance software during February, according to analyst Inform.
Retailers encountered a fairly robust increase in small business finance software during February in an otherwise flat software market - with a 50 per cent increase on January figures.
Quicken managed to gain 67 per cent of the unit share of the finance software market, while archrival MYOB grabbed just 25 per cent. But the strong result comes at the price of massive price-cutting.
Research manager at Inform's retail monitoring service, Phil Burnham singled out the Quickbooks 7 title as the strongest product in terms of sales.
"Quickbooks 7 was responsible for 59 per cent of all finance software sales during February and by looking at its aggressive street price it is clear to see why it has done so well."
The average sell price of Quickbooks 7 dropped by nearly two-thirds from $187.73 to just $65.21 during February, according to Inform.
It would be interesting to see if the vendor can sustain the price for much longer without hurting financially, Burnham added.
Price wars in the productivity software segment also led to stronger sales, with prices of Symantec's Norton Anti-virus 2000 and Network Associates' Virusscan 5.1 both dropping significantly.
Meanwhile, development software was hit hard during February, with sales down 20 per cent on the previous month. Sales in creativity software were also down 6 per cent on January figures.