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Author Topic: Adobe has me baffled about CS5  (Read 6512 times)
bartron
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« Reply #20 on: April 13, 2010, 05:52:16 PM »
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Quote from: thierrylegros396
Same problem in Belgium, 2 to 3x US prices !

They said that it's because of translation costs for Europe languages, but what about other countries in the world !

In Australia the non-upgrade cost is nearly $1000 more that the US price even taking into account the exchange rate and any local or import taxes. Yes, Australian(i.e. UK) english has some different spelling to US english but hardly $1000 worth. (the rest of the Adobe catalogue is in a similar position to varying degrees)

I'm yet to hear from anyone at Adobe that has justified the price differences between US and the rest of the world...especially when, in the case of the downloaded version, the only difference is my physical location when I purchase the serial number. It's borderline discrimination against non-US residents.

If there is valid justification then fine...but until then.....
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feppe
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« Reply #21 on: April 13, 2010, 05:56:34 PM »
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Quote from: bartron
If there is valid justification then fine...but until then.....

I'm not too familiar with Australian economy, but localization is only one part of the higher prices in Europe, for example. Cost of doing business here is higher than in the US, as is taxation; US prices are quoted without taxes, and their VAT equivalent is lower.

Finally, Europeans are accustomed to paying more for everything.
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bartron
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« Reply #22 on: April 13, 2010, 06:25:51 PM »
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Quote from: feppe
I'm not too familiar with Australian economy, but localization is only one part of the higher prices in Europe, for example. Cost of doing business here is higher than in the US, as is taxation; US prices are quoted without taxes, and their VAT equivalent is lower.

Finally, Europeans are accustomed to paying more for everything.

We have trade agreements with the US to try an avoid such things. That being said, everything here has 10% GST and depending on how it gets here (i.e. if it's a physical box that enters the country) it may or may not attract a 5% import duty as well.

By law, all sales prices displayed in Australia is the final price and includes all relevant taxes...so

The quoted Adobe price for just Photoshop CS5 (not the suite) is AU$1168 which converts to US$1083.03 at the current exchange rate
If I were in New York I would pay $699 + 8.875% = US$761

$322 more...or nearly AU$350

If you want to buy one of the creative suites it gets worse

If for some reason you wanted the master collection, our US friends can get it for US$2599+tax = US$2829 (picking NY tax again)

In Australia it's AU$4344...or US$4027......US$1198 more

How the hell is that justified?....I doesn't cost $1200 per copy extra just to sell it in Australia. The $1200 extra goes straight to Adobe.
« Last Edit: April 13, 2010, 06:26:49 PM by bartron » Logged
feppe
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« Reply #23 on: April 13, 2010, 06:42:29 PM »
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Quote from: bartron
How the hell is that justified?....I doesn't cost $1200 per copy extra just to sell it in Australia. The $1200 extra goes straight to Adobe.

It's pricing, it has nothing to do with concepts just as "justified" or "fair." If a company can wring more revenue/profit/market share/whatever they're after by exploiting a certain price point, they'll do it. And they should.

I'm not trying to justify anything or defend anyone, just trying to explain basics of pricing. But much of it has to do with cost of doing business in a country, which in turn has very little to do with exchange rates - and is certainly not as volatile as exchange rates.
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bartron
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« Reply #24 on: April 13, 2010, 07:09:51 PM »
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Quote from: feppe
It's pricing, it has nothing to do with concepts just as "justified" or "fair." If a company can wring more revenue/profit/market share/whatever they're after by exploiting a certain price point, they'll do it. And they should.

I'm not trying to justify anything or defend anyone, just trying to explain basics of pricing. But much of it has to do with cost of doing business in a country, which in turn has very little to do with exchange rates - and is certainly not as volatile as exchange rates.

well, they can "justify" it by saying "this is a result of what it costs to do business in Australia" or whatever the case may be.

Whatever the reason is though it seems to only affect Adobe. Everyone else seems to be able to do business and sell software here for little more than the difference in currency exchange (usually padded up a bit to counter exchange rate fluctuation).

The point being, no-one at Adobe has ever given reasonable justification as to why their software cost so much more outside the US...even if that justification is "because we want to charge you more".

It's not what they charge...it's how they charge differently in different markets that bugs me. The beauty of trade agreements with the US and parallel import laws means I can buy a copy from B&H and have it shipped here so ultimately it doesn't make a difference...I'll end up buying it the cheapest way I can legally (presuming I can convince myself it's worth it...currently on CS3 so probably will but time and reviews will tell).
« Last Edit: April 13, 2010, 07:28:03 PM by bartron » Logged
Ray
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« Reply #25 on: April 14, 2010, 07:01:18 PM »
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Quote from: bartron
well, they can "justify" it by saying "this is a result of what it costs to do business in Australia" or whatever the case may be.

Whatever the reason is though it seems to only affect Adobe. Everyone else seems to be able to do business and sell software here for little more than the difference in currency exchange (usually padded up a bit to counter exchange rate fluctuation).

The point being, no-one at Adobe has ever given reasonable justification as to why their software cost so much more outside the US...even if that justification is "because we want to charge you more".

It's not what they charge...it's how they charge differently in different markets that bugs me. The beauty of trade agreements with the US and parallel import laws means I can buy a copy from B&H and have it shipped here so ultimately it doesn't make a difference...I'll end up buying it the cheapest way I can legally (presuming I can convince myself it's worth it...currently on CS3 so probably will but time and reviews will tell).


I'm not sure I understand the problem here. Are you claiming that no supplier of Adobe Photoshop is allowed to ship the product overseas? Out of curiosity I've just done an internet check on the best price for a CS4 upgrade (I'm still using CS3) and found that Amazon is currently selling it for $199. I didn't buy it because CS5 will soon be available. However, when CS5 is available, I'll be shopping around for the best price.

I frequently buy stuff from Amazon, mostly Blu-ray discs. We live in a competitive and international economy, don't we?
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BernardLanguillier
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« Reply #26 on: April 15, 2010, 12:19:02 AM »
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Quote from: Ray
I frequently buy stuff from Amazon, mostly Blu-ray discs. We live in a competitive and international economy, don't we?

We very clearly don't, but whether it is a good or bad thing is a complex question.

Cheers,
Bernard
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Ray
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« Reply #27 on: April 15, 2010, 06:58:00 PM »
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Quote from: BernardLanguillier
We very clearly don't, but whether it is a good or bad thing is a complex question.

Cheers,
Bernard

Really! I get the impression that, in Australia, I live in a competitive economy. There are always anti-competitive practices that some industries try to put in place, and there is always room for improvement. Illegal practices of price rigging, price fixing and so on can be a problem in some areas, but generally I find that the choices of retailers in Australia, through the internet, are wide-ranging and vast.

If I find an overseas supplier who is prepared to sell a product I'm interested in at a significantly lower price than I can find in Australia, I'll calculate the additional cost of freight and GST if applicable, and buy the product from that overseas seller if the delivered price is lower than the best price I can find in Australia.

Almost invariably I find that books and prerecorded Blu-ray discs are cheaper from Amazon, even including the cost of the postage from overseas. Not only that, I get the stuff delivered to my letter box with no hassles, unless it's a large parcel which requires collection from the local post office.

However, perhaps it needs to be said that we are a pragmatic people in Australia. We don't waste everyone's time with inefficient administrative practices collecting small amounts of tax on items imported for personal use. Generally, if an imported item, including freight costs, is less than A$500, there will be no GST applied. If the value of the imported item is more than $500, then a 10% GST will apply, plus a small administrative charge.

The region coding of DVD and Blu-ray movies is a fine example of a wide-ranging anti-competitive practice. Fortunately, one can get around this by buying a region-free player. I would hope that the upgrade cost of Photoshop CS5 will be less than A$500 so that I will get it free of GST should I find it advantageous to buy the upgrade from an overseas supplier.
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bartron
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« Reply #28 on: April 15, 2010, 08:51:43 PM »
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Quote from: Ray
Generally, if an imported item, including freight costs, is less than A$500, there will be no GST applied. If the value of the imported item is more than $500, then a 10% GST will apply, plus a small administrative charge.

Australia is pretty good with parallel imports etc.

Although a minor correction in your post. The most you will get charged on any import item (apart from shipping costs) is 10% GST + 5% import duty, both of which are at the digression of the Customs officer (unless you ship via UPS because they are jerks and "always" apply both...I much prefer USPS and they are rarely slower than UPS anyway).

Secondly, the limit is now $1000. Up to about $1200-$1300 it will be 50/50 if you get hit with GST and above that it's pretty much a sure thing. Anything under $1000 can be brought in with no GST or duty charges though. It used to be $500, but no more.




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Ray
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« Reply #29 on: April 15, 2010, 09:00:28 PM »
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Quote from: bartron
Secondly, the limit is now $1000. Up to about $1200-$1300 it will be 50/50 if you get hit with GST and above that it's pretty much a sure thing. Anything under $1000 can be brought in with no GST or duty charges though. It used to be $500, but no more.

Thanks for the correction. What's your complaint?  
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