Right, Photoshop CS5 would cost me $699 if I lived in the US. But as it happens, I live in Australia.
Now, at the moment, 669 dollars in the US is worth about 707.987 dollars in Australia. That's the current rate of exchange, it's what the banks use, it's what companies use, it's what industries use - currency parities are the basis of the world economy.
So far, so good.
But it seems Adobe operates outside the fiscal constraints that bind the rest of the world. I just went to buy Adobe Photoshop CS5 via the Adobe site, and the price shown on the order page is...... Australian $1168............
Now, I don't know how much the postage would cost on a small carboard box containing a tiny plastic disk, but I'm sure it's not going to be anywhere near $460!!!!
So why the price difference? Why do Australian have to pay $400 more than the US for the same product?
Anybody got any ideas about that?
Probably the language difference harder to translate from hello to g'day!
I think one Photoshop is originated from a company in the USA, first would be the tariff, protecting any software developed in Australia that might compete.
then special support for Australia as well, then currency differences probably cause accounting issues which cost money as well. There might be taxes on corporation that are from the outside as well. Then legal issues, patent issues and finally as an Aussie you might think of a few that I might not think of.
Hope this ishelpful.
Oh one more there might be a software company in Australia that had legal issues with Adobe that demands a take and the legal system may have back them up and so they get a cut as well.
Haha, I can't begin to imagine trying to use software written in "Australian", Wade! I wouldn't know where to find the "Crikey" Key on my keyboard.
But you're probably right. All the factors you mention could well play a part. Especially with the legal machinations that go on between trading partners.
Pity, though. It means that only earning professionals can justify the expense of buying software that any amateur in the US takes for granted. For the Common Consumer, an extra $400 on top of $600 is a no-brainer deal-killer every time.
Anyway, thanks for your thoughts.
I logged back in to respond.
I happen to think that regardless of the circumstances that Australians are being punished for being in a more remote part of the world and though some of those things I mention probably do play a part in the strange price difference Australians have proven to good loyal customers I know Adobe and Nikon should be aware of this and perhaps give at least a 15% reduction on the cost of their products. Both companies would benefit a great deal and Aussies deserve a better price. Parody would be even better and the product will sell really well.
I went to Australia in January of this year and the one thing everyone told me if they could get their Model Nikon for a price closer to the US they would not think twice about getting it and if Photoshop was also less expensive they would definitely have it. In both cases they were not pros but would not think twice about getting the top of the line they were mostly interested in the Nikon D3 series, no one mentioned Canon and they all said they would go for the extended version of Photoshop but would probably by the Master Collection just to have it.
To me it is crazy to let this market go to waste and almost everyone I talked to wanted top of the line anything that was at the right price.
I am with you one this Adobe and Nikon should do a study on this ti see what I mean.
I bought a little superman comic a couple of days ago from the newsagent and it had the price on the comic as part of the cover saying 2 dollars 99 but when I got the charge for it it was over 7 dollars, so I asked why, and they said, because it was from america. I said, well what about the exchange rate, but they said something about duty and taxes and shipping. of course we are getting ripped off in australia.
$2.99 is the retail price in USA for the comic, but the newsagent pays less. But even if he pays $3, GST is 30cents. Duty possibly 30cents, & shipping possibly 50cents maximum, as they come in bulk. Total cost $4.10, & this is an overestimate, so his profit is over $3. Not bad!
$1519 for Extended in NZ.
Its pretty hard to take seriously, hence my recent $165 upgrade to CS4 Via Ebay. You have to be careful buying on ebay though theres lots of pirated versions.
insane overpricing tends to do that.
yes they don't reward the honest people who buy their software and don't buy pirated stuff and want to upgrade. I think upgrade prices should be very much cheaper. And of course exchange rate should give results!
and it is no bucks at all for postage to buy the download version which is what I would do - if the software was reasonably priced ie at least the same for US c/w australia taking into account the exchange rate.
Its actually cheaper, by $0.09 for extended, and $0.18 NZ$ to buy the "Send me the disc" version of Photoshop here in NZ, so the postal cost simply does not stand up, here in NZ at least. Buying the download version is fractionally more expensive.
Its unrealistic to expect respect in the other direction with these prices.
OSX Lion is coming soon, as someone who makes a living selling iPhone and iPad apps, I'll likely have to switch to it quite quickly (Its either Apples way or the highway) . The cost of getting photoshop to work on that platform will likely be the biggest single software expense this year. Just to get it working again.
I really can't believe Adobe has any say in the Australian costs. Canada doesn't charge duty on software, and since the Canadian dollar is higher than the US right now, Canadians would probably get somewhat of a price break.
But why would you pick the shipping option anyway? Who needs a box and a disc that is going to be out of date even before it's shipped?
I can think of a few reasons to get physical media. The bloated prices mean its a tradeable investment. In cases of emergency you might need to onsell your license as a last resort for example. In some places having a physical product means the item is more tangible, less likely to be pirated, if only in perception. The massive gouge in the pocket that is licensing this software also means for some that they would want as much back out of it as possible too perhaps, a physical token for the investment. And here it least the shipping version is the cheaper.
Some people just like "stuff", like CD collections.
here at least the shipping version is the cheaper.
Well that just confuses the hell out of me. I've don't believe I've ever
seen shipping as anything but an added cost. How does that work? Do you get
a discount for having the product shipped, or is there a premium on
And as for the "stuff," I'm glad to be rid of it. Especially when using it
means that you immediately have to go online and reinstall everything.
I travelled to Australia last year and I have to agree that they really stick it to the Aussies for no apparent reason. It seems really unreasonable to me aswell.
As I wrote before if it is not because of an import tax or tariff then the policyand price should change. I understand that maintaining a support group in Australia might be an expense but if the cost of the software was reasonable
Adobe would have a really loyal following.
Adobe is missing out on proably a couple of million buyers by not making an effort to lower the price.