14 Replies Latest reply: Jul 8, 2012 9:17 AM by Dean Utian RSS

    25% price increase when ordering Cloud membership?

    teho59 Community Member

      Hi,

       

      I was about to order the Cloud Membership. Price is $50 for one year or $75 per month. When I went to the checkout it switched to Norwegian kroner, fair enough,   but the prices is at the same time increased by 25%.  Converted back the price is now $67 and $101. 

       

      I won't pay that, I wonder who is taking the extra charge here?

       

      All prices is $50 and $75 an all pages advertising for the Cloud Membership, until payment.

       

      Regards

      Terje

        • 1. Re: 25% price increase when ordering Cloud membership?
          urdaddi Community Member

          There are different prices for various regions in the world.   The amounts of $50 & $75 are for U.S. memberships.

          • 2. Re: 25% price increase when ordering Cloud membership?
            John Waller CommunityMVP

            urdaddi wrote:

             

            There are different prices for various regions in the world.   The amounts of $50 & $75 are for U.S. memberships.

            I think that's clear enough.

             

            Point is the regional price differences are not explained by exchange rate fluctuations alone.

             

            There's clearly regional price gouging (extortionate markups) going on and it seems that Adobe is the sole beneficiary.

             

            Problem is there's no viable competition to keep Adobe honest so everyone pays.

            • 3. Re: 25% price increase when ordering Cloud membership?
              Dean Utian CommunityMVP

              @John

               

              In Australia, we also pay higher prices for Adobe software - around the same increase as you're seeing at your end - about 25% higher. Think the Aus price is AU$62/month for CC and the Aus $ is stronger than the US.

               

               

              There has been a lot of discussion about this in avrious blogs, magazines. The official Adobe explanation is:
              "Our pricing methodology takes into consideration the costs of doing business in different regions and customer research that assesses the value of the product in the local market. Conditions vary between markets and it’s difficult to make a straight comparison between countries."

              http://desktopmag.com.au/news/adobes-cs6-pricing-explanation/

               

              It doesn't really explain things but suggests that Adobe creates a price they think will be accepted by the market.

               

               

              In Australia, the educational price for Creative Cloud is in line with the US price. In fact, with current exhange rates, it's slighly cheaper.

               

              Dean

              • 4. Re: 25% price increase when ordering Cloud membership?
                John Waller CommunityMVP

                Dean Utian wrote:

                 

                @John

                 

                In Australia, we also pay higher prices for Adobe software - around the same increase as you're seeing at your end - about 25% higher. Think the Aus price is AU$62/month for CC and the Aus $ is stronger than the US.

                Thanks Dean. Yes, that's what I'm paying. I'm in Australia too.

                 

                 

                Dean Utian wrote:

                 

                There has been a lot of discussion about this in avrious blogs, magazines. The official Adobe explanation is:
                "Our pricing methodology takes into consideration the costs of doing business in different regions and customer research that assesses the value of the product in the local market. Conditions vary between markets and it’s difficult to make a straight comparison between countries."

                http://desktopmag.com.au/news/adobes-cs6-pricing-explanation/

                 

                It doesn't really explain things but suggests that Adobe creates a price they think will be accepted by the market.

                I've seen these vague "explanations" trotted out online often.

                 

                They're often cut-and-pasted in this forum by Adobe Staff. Suggest the Staff don't have a better answer either - or they're not authorised to post one.

                 

                Problem is the "explanations" don't explain anything - especially the fact that the Cloud is digitally delivered so no transport or packaging costs, just bit and bytes and Gigabytes from an Adobe server located somewhere around the globe. Same product and service wherever you are.

                 

                As you say, Adobe charges what the market will bear. Some loathe it and won't pay the regional price differences on principle. The majority tolerates it in order to use the software.

                 

                Free market capitalism at its purest.

                 

                 

                Dean Utian wrote:

                 

                In Australia, the educational price for Creative Cloud is in line with the US price. In fact, with current exhange rates, it's slighly cheaper.

                Interesting observation.

                • 5. Re: 25% price increase when ordering Cloud membership?
                  Dean Utian CommunityMVP

                  Hi John, meant the last message to be @teho59.


                  My cut and paste was not meant to be an 'explanation' but just the Adobe answer you can expect to receive

                  .
                  John - you are correct that an online service should cost the same no matter where you are in the world.

                   

                  In Australia, the issue of inflated prices for technology has been a political issue with a parliamentary inquiry into software pricing later this year. From the mainstream press here:
                  http://www.smh.com.au/technology/technology-news/parliament-probes-technology-price-gouge- 20120428-1xrl2.html
                  http://www.theaustralian.com.au/australian-it/government/price-gouging-inquiry-to-name-and -shame/story-fn4htb9o-1226343072855

                  • 6. Re: 25% price increase when ordering Cloud membership?
                    John Waller CommunityMVP

                    Dean Utian wrote:

                     

                    In Australia, the issue of inflated prices for technology has been a political issue with a parliamentary inquiry into software pricing later this year. From the mainstream press here:
                    http://www.smh.com.au/technology/technology-news/parliament-probes-tec hnology-price-gouge-20120428-1xrl2.html
                    http://www.theaustralian.com.au/australian-it/government/price-gouging -inquiry-to-name-and-shame/story-fn4htb9o-1226343072855

                    I been watching this with interest but I fear it will come to nothing.

                     

                    Companies can charge what they like for software, providing there's no evidence of collusion or price fixing.

                     

                    As far as I can  tell, the Govt inquiry is more about the Govt ensuring that there are no trade barriers or unnecessary taxes causing price differences.

                     

                    Don't see what else the Govt can do to lower prices or achieve regional pricing parity - especially in a small market (in global terms) like Australia.

                    • 7. Re: 25% price increase when ordering Cloud membership?
                      urdaddi Community Member

                       

                       

                      ......- especially the fact that the Cloud is digitally delivered so no transport or packaging costs, just bit and bytes and Gigabytes from an Adobe server located somewhere around the globe. Same product and service wherever you are.

                       

                       

                      I agree entirely that there should be a much better explanation.  But I have to disagree a bit with your statement here.....at least to a certain exctent.

                       

                      I would hope that you realize therei smuch more to what Adobe has and offers than what you stated above.  There are costs involved for a deigital delivery.  Adobe still has to have infrastructure and equipment.  It is not just a computer sitting on the floor somewhere.  In addition, there is going to be costs involved in having the ability to deliver products digitally.  There will be costs associated with doing business in the various locations in which the product is available.  Do not think for  a moment that your government does not collect some kind of tax from Adobe.

                       

                      I am not saying that the price that is being charged is a correct price.  But without knowing what actual costs are, how can we determine what is correct or not?

                      • 8. Re: 25% price increase when ordering Cloud membership?
                        teho59 Community Member

                        Thanks for your answers!

                         

                        The conclusion seems to be that Adobe is exploiting the fact that some markets/countries have more money than others. They have some dubious explanations (more cost bla.bla.) but at the end everybody sees the real story behind it : "if you have more money, you have to pay more!".

                         

                        No wonder why people get fedup and runs a trialware on VMWare or just gets the crack to run the software for free.

                         

                        If I got it at the advertisement price I would have invested my money into the Cloud. Now I won't because I feel like Adobe are cheating me. Maybe later if I don't find any alternatives.

                        • 9. Re: 25% price increase when ordering Cloud membership?
                          John Waller CommunityMVP

                          teho59 wrote:

                          Maybe later if I don't find any alternatives.

                          And there's the conclusion that so many people end up coming to.

                           

                          There are plenty of alternative standalones to the individual Creative Suite components (GIMP instead of Photoshop etc) and those do satisfy some people.

                           

                          But the fact remains that the Creative Suites (and the Cloud) are a convenient, best-in-class, tightly integrated solution of excellent software with every feature you can imagine.

                           

                          So many people find the lure of the Suites compelling, their resistance to price wears down and they end up upgrading or joining the Cloud after all.

                           

                          Best of luck with your decision-making.

                          • 10. Re: 25% price increase when ordering Cloud membership?
                            teho59 Community Member

                            John Waller wrote:

                             

                            teho59 wrote:

                            Maybe later if I don't find any alternatives.

                            And there's the conclusion that so many people end up coming to.

                             

                            ...

                             

                            So many people find the lure of the Suites compelling, their resistance to price wears down and they end up upgrading or joining the Cloud after all.

                             

                            Best of luck with your decision-making.

                             

                             

                            Yes, you are probably right in my case too...

                            • 11. Re: 25% price increase when ordering Cloud membership?
                              BobZ30 Community Member

                              I don't really understand the Adobe bashing -- cheating, gouging, etc.  In any market economy, prices are set by what the market will pay and at a level that will make a profit for the seller.  As a poster above said, "capaitalism at its' purest."   Adobe is in business to make money, it is not a charitable organization to benefit its users.  If Adobe didn't make money, it would go away -- along with its products.

                              • 12. Re: 25% price increase when ordering Cloud membership?
                                Dean Utian CommunityMVP

                                BobZ30
                                >I don't really understand the Adobe bashing -- cheating, gouging, etc. 

                                 

                                Hi Bob.

                                 

                                I don’t think this thread is Adobe bashing, although people have mentioned they feel exploited by the inflated prices. You should see some other threads on this topic and you’ll see what real bashing looks like. The thread has been critical of Adobe’s pricing as there does not appear to be a plausible reason for the significant price differences between the US and other markets. As I mentioned, the Australian government is set to have an enquiry about technology pricing. It is not just Adobe. Apple and other companies do the same thing.

                                 

                                >Adobe is in business to make money, it is not a charitable organization to benefit its users. If Adobe didn't make money, it would go away -- along with its products.

                                 

                                I’ll add a different perspective to the above. For a long time, Adobe and Macromedia did not have reasonable student pricing for software. So, they basically priced out students from purchasing legitimate versions of the software. I have long argued for better prices for education. You could use your argument of “Adobe is a business to make money” to defend the high prices for students. However, the result was that students went the route of cracked versions of the software.

                                 

                                I'd expect people to be happy for Adobe to be inventive in making money for the business. They’d just like a fair approach so it’s not just about making money but providing value.

                                 

                                Dean

                                • 13. Re: 25% price increase when ordering Cloud membership?
                                  BobZ30 Community Member

                                  Dean,

                                   

                                  My post was an admittedly simplistic explanation of why a company charges what it does.  Why Adobe prices range so widely away from the U.S. has still not been fully explained.  There are extra costs in doing overseas business, but Adobe doesn't explain what they are and why they differ from country to country.  More transparency is needed.

                                   

                                  As far as student pricing is concerned, Adobe now has a student/teacher price structure, but I fear students (although I haven't been one for a long time) will always feel that any price is too high no matter what they are buying.

                                   

                                  Bob

                                  • 14. Re: 25% price increase when ordering Cloud membership?
                                    Dean Utian CommunityMVP

                                    >As far as student pricing is concerned, Adobe now has a student/teacher price structure, but I fear students (although I haven't been one for a long time) will always feel that any price is too high no matter what they are buying.

                                     

                                    The student pricing is much better now. You are right that students will always think prices are too high. Some companies, like Autodesk, give students a free version of their software. I was surprised to read Adobe's FAQ which states that the student versions can be used for commercial purposes, something not common with other software companies.

                                     

                                    Dean