I'm honestly at a loss as to how these prices can still be justified.
A full digital content delivery system with no physical product (Completely virtual!) still costs more here when our dollar is a higher value and has been consistently for a very long time.
If I buy any product in the world online, it gets converted to my currency and I pay that price.
As of today, $30 US = $29 Au
But somehow it's $38Au.
I'm not trying to come off aggressive, I just bought the production premium suite cs5.5 a few months ago, so I'm not exactly a cheap skate...I'm a paying customer.
This blatant regional price hiking leaves more than sour taste though. What's the honest to god reason for it?
Thank you for your comments.
Adobe decides the price at which it sells its product on the Adobe Store. A number of factors influence our regional pricing including local market conditions and the cost of doing business in that region. Please note that resellers are free to decide at which price they sell Adobe products, which can be less than the price on the Adobe Store.
We establish our prices for Creative Suite products in U.S. dollars, Euros, Yen, British Pound and Australian dollars on a regional basis using a consistent methodology. Local market conditions significantly influence our pricing – these include the costs of doing business in different regions and customer research that assesses the value of the product in the local market.
We conduct the majority of our business through our retail and licensing channels. We depend on our retail partners in local markets to help us reach as many customers as possible, support those customers, and much more.
As stated, the cost of doing business in the rest of the world is higher than in North America. That higher cost is reflected in some of our pricing and would remain no matter how customers chose to purchase. For example, customers will still read about our products through local press to whom we reach out; they will meet local Adobe sales people who conduct seminars, participate in user groups, and visit large customers; and they will rely on support resources that Adobe makes available in these markets. All of these efforts impact the business costs of securing the sale, whether that sale is delivered online or in a box.
I totally agree with the original poster, there is no justification for such differences. 25% more in Australia, 56% more in Switzerland. No way these numbers make sense.
Of course as an Adobe employee you have the obligation to repeat great excuses such as "cost of doing business locally", or better yet "customer research that assesses the value of the product in the local market". But in the end, the fact is you simply overcharge everywhere you can, and that doesn't enhance the value of your product, it simply makes you look like thieves to the customers in the said local markets.
David, it's not the "costs of doing business" that are higher (in the meaning that rent or workforce is more costly) - it's just taxes. And indeed, the tax wedge for businesses operating in other parts of the world is higher (the income tax in Poland for companies is 19%, there are other taxes too), but there's also VAT that Incroyal and the original poster forget - the US does not have VAT. If you are a company then you can deduct your VAT later on, but that's another story.
As far as i remember, the total tax wedge for an American citizen is about 15% whereas for a Swede it's approx 60%.
Plus, if Adobe operated from the US only that'd be a different story, but also - that would mean more complicated accounting for Adobe (being able to sell to companies in EU, for example, they'd have to get a EU taxpayer identification number and impose VAT on sales to EU anyway).
The only solution for individuals is to get an American citizenship
Thanks for the cut and paste response David. I read those exact words in 3 different articles this week related to adobe’s pricing stance.
One of our own politicians is calling foul play on the whole sordid business and we can only hope that the ACCC investigates as a result.
When you own a monopoly on the creative industry, there should be a price to pay for gouging customers like this.
The only tax in Australia is Goods and Services Tax (GST) which is 10%
Adobe are throwing cream on top of that to the tune of whatever-they-feel-like.
For example, the cloud subscription price is 25% more, but check out the upgrade price for the production premium suite I own.
In the US, it costs $375 to go from cs5.5 to cs6
In Australia, the exact same product is $626!
So for one delivery method (cloud subscription) of the EXACT SAME software it’s a 25% hike, and to go the boxed upgrade route of my production premium suite(Again, SAME SOFTWARE, minus half the adobe range) it’s a 59% mark-up!!!! There is no valid reason for this and this wildly inappropriate mark-up discrepancy proves it.
By Adam’s reasoning, I should be paying 25%-60% more in Australia for every product that comes from the States simply because I don’t live there. That’s not how free markets work. I don’t pay more for Windows, or OSX. I don’t pay more for pc hardware which actually has a shipping cost to get to my country. In fact, we don’t even pay GST or customs on any product under $1000Au. This means me buying any product from the states (such as an adobe upgrade for $375US) costs exactly $375 US.
It’s a “buy” button on a web store – no staff costs
It’s then a download from a US server – Same server cost per download for everyone.
No people involved, a perfectly virtual non-physical product delivered directly to my hard drive. But you want to charge me $250 more because you can and because you’ve gotten away with it for so long. All it does is promote piracy and make me wonder why I even support a company like this.
Well, your reasoning seems logical. If that's the case with other equipment or software, i don't get why Adobe stuff should be more expensive.
In the EU it's just a different story and it's funny what you wrote "that's not how free markets work" - i would love to believe in something like a free market, but it exists only in economy books, not in real life. I can only send greetings to you my friend from this sad prison of virtual economical freedom that is the European Union.
As a long time and relatively loyal Adobe User, I really do question my attachment to the company.
I have owned CS2, CS5, and now just pre-ordered CS6.
The problem is that I live in New Zealand (which comes under the Australian Store, the most expensive Adobe store in the world). The problem with this is that Australia's economy and wages are in far better condition than in New Zealand, with the NZD being worth on 75c in Australian Dollars. Compouding with this the Average wage in Australia is 30% higher than here...
Ouch Ouch Ouch, is all I can say.
It is actually preventing me from purchasing other Adobe products, which at last check are on average 2.5 time higher than the price of the US equivalent.
I have been keeping an ear to the street here, and the average current version of adobe being run by most print shops and production houses is around CS2, or CS3. They all "WANT TO UPGRADE" but simply cannot justify the need to, simply opting to get everyone to submit their files in PDF. Your customer research is either whack, or conducted by accountants and not researchers!
Laser cutters, Vinyl Cutters, Sign Writers, Die-line creators etc... are all using Corel still! You can entirely blitz this market with Illustrator if you came up with the correct pricing here.
It is actually cheaper for me to personally travel 13.5 hours accross the pacific to the Adobe headquarters in the US and purchase a single seat of Adobe CS6 (Full), alongside Adobe Font Folio, and fly 13.5 hours home, than it is to pruchase it as a download through the Adobe store. This just highlights the truth (or lack of) behind your distribution claims)
Really and truly Dissapointed! (But only in your attitude, and not in your products.)
Wow, I didn't realise NZ had to pay Australian prices! That's criminally expensive. Adobe probably just sees our relatively small markets and just shrugs.
It's a real pity it's not about the customer in regional markets. It wouldn't be so bad if they didn't have such a massive monopoly on the creative industry, but thems the breaks.
Squeezed out from my iPhone
They do this because they can. They can because consumers too dumb, too ignorant or to lazy to challange this (with minor exceptions).
As David said, it all depends on the market condition and other factors. (ie consumers ability to pay/tollorate higher price).
The only real way to fight this is to boycott against companies that inforce region based pricing. But you need majority of usres to do this in order to get noticed and even more to get a faivorable responce. Othereise you just get a copy/paste responce from someone like David (if you luky and the comany you complain about puts an effort on comsumer expectations and relationsship management).
Well they do it because they "think they can get away with it"
I believe they would find that with even pricing, people would do one of the following (which will work in their favour)
1) Purchase upgrades more regularly
2) Purchase more licenses
3) Purchase larger or more complete packages. i.e. Premium instead of Standard
4) Purchase other software or accompanying things, such as the font folio.
I've known many companies who really keep it to the bare essentials and would love to go for the big kahuna package. We personally make do with fonts that are bundled, alongside free fonts from the web. for us (Industrial Designers, not graphic designers) this is ok, but I truly would love to grab the font folio! The truth is, I simply won't until the prices are the same as the US prices, plus a reasonable transaction/currency conversion fee.
Instead we buy other software to give us benefits in other areas, such as Alias Sketchbook (no super-crazy markup), or Alias Designer etc...
So Adobe is 'not' getting away with it, they simply think they are.
If an Adobe Sales rep wishes to make a sale, Give me a call, and i will gladly pay the exact US price for Font Folio, If you don't want a sale, keep pretending!
Exactly! I'd upgrade my production premium suite to CS6 in a minute if it was the US price. As it stands though, Adobe is not getting the sale, nor will it at double the price.
Must be thousands of lost sales because of this policy.
Squeezed out from my iPhone
I do not need to meet local reseller, or recieve training through local resellers. I have been using Adobe since 1992 and my experience level is far higher than any sales-person can offer. There is absolutely no benefit in inflated local reseller pricing. I am tired of copping out the extra $$$ no matter where in the world I work from, just to support local slaes-people that adds absolutely no value to the product. The price difference companies like Adobe and Autodesk charges depending on where in the worl you work makes it difficult in countries that do not have the strenght of the US economy.
Why do you penalise me. I can understand if there is a different because of tax and import duties - I do not mind for those costs to be openly reflected. Why do I have to fork out your redistribution costs while US citizens get's the benefit of the same software with the same features at a reduced cost.
In the last 20 years I have had absolutely no benefit from any reseller. I have worked at 8 different employer and each time the motivation behind buying Adobe, Autodesk, etc... software came down to me. I had absolutely no need for a local reseller - or "support" of less-skilled sales-people.
This issue puts me in a love-hate relationship with Adobe. I love the software your developers and Designers create, and appreciate their passion - but disagree with the "suits". It also influences my loyalty to your company. In some cases I have opted out of purchasing the Adobe solutions and rather suggested alternative for clients (e.g. Corel, Xara).
You have killed of Freehand and forced me to use Illustrator (thanks I finally got mulit-page support only 4 years back - something I could do in Freehand in 1995) - and Director (flash finally caught up and became what Director could have been - e.g. real-time 3d engine, and now you are killing that of as well).
I am getting impatient with Adobe...
I so agree, and if you think you are hard done by, look what we have to pay in New Zealand for an upgrade.
Great price variations from different Adode sites.
US $199.00 US
Australia $309 Aus = $309.00 US
New Zealand $755 NZ =$510.00 US
This is plain stupid as I'm talking download. I can't even rembember how long ago I bought my first Photoshop, but this is the first time, I have seriously considered not to upgrade. I love Photoshop, but between Lightroom and CS5 I can probably survive a few years.
I just went through the webstore - it accidently took me through the US store - I wanted to upgrade my Master Collection CS5.5 (the x..th company I have worked for where I influenced the purchase of Adobe, Autodesk, etc..)
The US price was $525 = AU$535 with current exchange (let's add 10% tax = AUD$590)
The AUS price was $799 (BEFORE TAX) - add 10% = AUD$880
thats a 33% hike on price
I think it is time to switch to Nuke instead of After-Effects
Sony Vegas for Premiere (I already use Vegas quite a bit and love the quick transition function, great sound support, etc...
Xara for Illustrator
Photoshop is still a problem - since I have been using it since 1992 - I love the software - I have respect for the individual Designers and Developers working on the software - but I have no respect anymore for the Adobe brand. I have been testing aternatives for cartooning and sketching - like Sketchbook and Artrage - For photo-mnipulation there is no equal - any suggestions - Maybe time to look at the Photoshop-clone of Gimp - gimpshop - at the end of the day it is my skill and not the tool...
I'll have to use both Alias sketchbook or painter - and maybe combine with Gimp...
Dreamweaver??- I have not used it in the last 5 years because no benefit - buggy css support - bloated code (rather code own functions in jquery) - I rather use a code editor - jedit, testing my css live in firefox and chrome with developer tools to get real feedback of css
I love flex and flash - I do use the wysiwyg quite a bit - but now adobe is killing it of anyway.... I have the same sinking feeling I had about Director when Adobe tried to sink Macromedia through expensive lawsuits (Director's funding dissapeared) In 1996 I had such high hopes for Macromedia X-Res as an alternative to photoshop
Let's name alternatives....
There is no cost to you for me to download a file from a server (that is most likely not in australia).
if adobe has to add 25% to cover operational costs, than it's adobe's business model that needs modifying, not our retail price.