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Question

Something doesn't add up about the new Australian price increase for Adobe CC

Forum|Forum|8 years ago
May 4, 2017
10 replies
4092 views

So I was going to respond to this via the link supplied in the email I got telling me my subscription was going up to A$72.59 but conveniently the link returned an error and suggest I either ring support or come here. Sorry I would had preferred to do this via email, but you forced my hand into the public arena.

Adobe says the reason for the price hike is because 'Adobe monitors currency exchange rates in order to make adjustments to our pricing up or down as needed.'

The current exchange rate based on a US subscription is $50US = $67.47AUD. This is roughly the price we are paying now. We haven't had a Brexit style currency crash like the UK who I am sure are also being slugged extra.

The Australian dollar has sat at around 75cUS for about two years now, so there hasn't been any sudden currency changes to warrant this increase. It feels like the Australia tax most US tech companies like to impose on us here in the Southern hemisphere.

I certainly don't remember Adobe CC being $45 when it launched here in Australia in 2013 and the Australian dollar sat at about $1.10US. Where was the exchange rate pricing back then?

So for Adobe to say they use 'currency exchange rates in order to make adjustments to our pricing' is facetious at best and just not factual at worst.

Add to this that Adobe already raised the price from $58AUS to $63.8AUS only 6 months ago last December and that makes an extra $115 a year every Australian is paying for the exact same product. Adobe pretty much has a monopoly on production software meaning we have no choice but to lump it and this seems grossly unfair.

Can someone from Adobe please explain how the recent price works and why it isn't inline with actual currency rates as you are claiming?

Creative Cloud

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alexanderh89458012

Participant

I have just wasted 30 minutes asking Adobe chat why they charge UK customers £119 for Lightroom where they charge US customers $119 which is equivalent as of todays exchange to £94.

They did not know and could not give any clues about what department I can enquire further to....or even what country they may be based in. The enforced move from the standalone Lightroom to subscription is exacerbated by this unfair "overpricing" of the product...... or do they have a good reason?

Seems impossible to find out

P

Paul Hannah

Participating Frequently

As I posted in another forum on this subject:

I paid $1144 for CS5.5 in May 2011.

That worked out at $32 per month until June 2014 when I switched to Creative Cloud.

12 months later Adobe informed me that the $30 Iwas paying for CC was an 'introductory' price – when I pointed out that their promotional email failed to mention the 'introductory' price they extended the $30 for another 12 months.

Since then?

January 2016, $50.

February 2017, $58.

June 2017, $72

If I'd stuck with CS5.5 my monthly cost for using adobe products would now be less than $16 per month. Admittedly I wouldn't be able to take advantage of the new 'bells and whistles' but I use them so rarely it doesn't warrant the extra $56 I'm now paying.

Paul

rhysyg03

Participant

Agree with all the 'exchange rate' being a poor excuse for a price hike comments!

The fact that you can't purchase Photoshop and Illustrator in a combo price is terrible as well.

Clearly making it difficult to purchase 2 of the most used programs out there for any graphic designer.

ProDesignTools

Community Expert

Well obviously, nobody ever likes a price increase. But it's important to note the comparison chart at the bottom of this article, which shows that before taxes, the new Aussie prices still work out to a bit lower than the US prices in all cases (after multiplying the exchange rate).

So even after the increase, Australian customers will continue to pay Adobe less in US dollars than American customers do for the same subscription plan. (Added gov't taxes are higher though, as in Europe.)

ProDesignTools

Community Expert

wozowski wrote
Add to this that Adobe already raised the price from $58AUS to $63.8AUS only 6 months ago last December and that makes an extra $115 a year every Australian is paying for the exact same product. Adobe pretty much has a monopoly on production software meaning we have no choice but to lump it and this seems grossly unfair.

Note that the increase in December was not due to Adobe raising rates for Creative Cloud. It was due to Adobe being required to now collect GST for online purchases on behalf of the Australian and NZ governments. For more details, see:

Here’s Why Some Creative Cloud Subscription Prices Are Changing

Note that all annual subscriptions renewing in Oz/NZ throughout 2017 will see this tax begin to be collected at the time of renewal... So, for example, if your CC subscription renews every May, you will only begin to pay the GST starting in May 2017.

wozowskiAuthor

Participating Frequently

ProDesignTools wrote
Note that all annual subscriptions renewing in Oz/NZ throughout 2017 will see this tax begin to be collected at the time of renewal... So, for example, if your CC subscription renews every May, you will only begin to pay the GST starting in May 2017.

Are you sure about that? My annual subscription renews next month but my subscription went up to $58 last Dec?

NB. $58 is not 10% of $50. Add all those extra little $3 up over Oceania and I'm sure it works out pretty well for Adobe.

And I still call BS on price based currency indexing from Adobe.

We never got CC cheaper than the US when our dollar was stronger against the US and if Adobe were actually into currency based indexing we'd all just pay $50US a month and let the money market figure it out.

ProDesignTools

Community Expert

wozowski wrote
Are you sure about that? My annual subscription renews next month but my subscription went up to $58 last Dec?

See:

Why am I charged GST for my membership?

We never got CC cheaper than the US when our dollar was stronger against the US and if Adobe were actually into currency based indexing we'd all just pay $50US a month and let the money market figure it out.

Actually, on a currency-translated basis, customers in Australia did get it cheaper than $US50 for years... Explained on this thread:

https://forums.adobe.com/message/8638112#8638112

A

adamm50988823

Participant

Agreed! The "currency fluctuation" story was a mistake. No good complaining, Adobe Zii here we come!

Social Outcomes

Participant

I share the same sentiments and like Giz Reader Steve (https://www.gizmodo.com.au/2017/05/creative-cloud-keeps-getting-more-expensive-in-australia/ ) have just cancelled my CC "All Apps" membership.

Going from $49.99/month to $72.59/month in less than 2 years is beyond a joke, especially when I use a total of 3 apps (1 app often, 2 rarely.)

Thanks Adobe, it's been fun... off to find alternatives.

chriswardyoung

Participant

To make matters worse for NZ customers, we have to pay in AUS$ - so we're not only hit with a price increase, but we have no stable amount each month.

The sad part is that I use CC for a living, and do not have the capacity to purchase and learn a whole new suite of software.

Adobe's constantly poor treatment of their customers beggars belief.

caseyv.com.au

Known Participant

If they really wanted to play the currency game, they should charge us all in US$ and let the currency dictate the rest.

Maybe you never know what it will be each month, but at least it will be a fair conversion.

B

Blahphoto

Participant

I'm on the introductory $9.99 photography plan and it's now going up to $14.29. I can't see how that can be justified by currency fluctuations

wozowskiAuthor

Participating Frequently

Much like the CC suite, 25% currency difference with an almost 50% price hike.

PawSydney

Known Participant

I agree entirely. From 50 to 63 6 months ago was a 15% hike and to 73 will be almost 50 % from the origional price in 2013. During this same time the AUS dollar has indeed dropped in value against the uk pound and US dollar by

a total of 16 % which means we should only now be paying 65

73 is coming to the point where I may as well buy an older version or final cut 7 outright and never Have to pay again. I would even consider a legal action as must be questionable on some level

its is true adobe seem to have us over a barrel but if enough number disputed and indeed withdraw they may see the point.

totally un fair price increase, within 6 months of a questionable increase.

disgusting

wozowskiAuthor

Participating Frequently

It would be very interesting to see what the ACCC would have to say about it, especially considering Adobe are falsely claiming it is all currency indexed pricing.

It is bad enough for individual users, but think about the studios with multiple licenses that are looking at $1000s extra every year on their business overheads for the exact same price.

I wouldn't care if I could buy CC outright, but seeing as Adobe have closed the avenue for purchasing their latest versions of software outright they really do have us loyal users at an unfair advantage.

As I pointed out in my original post currency index pricing never seems to work out the other way when the Australian dollar rallies to a high as it did back in 2013 and was stronger than the US dollar. But if it dips, then suddenly overseas companies are very keen to up prices in line with international currency rates.

kglad

Community Expert

these are user-to-user forums so we don't know the answer. and even most adobe employees likely don't know that answer, and if they did, they would be prevented from saying anything because nka's.

but it doesn't look like you're the only one to have noticed: Subscription cost increasing AGAIN

wozowskiAuthor

Participating Frequently

Looking at other posts where users are requesting subscription cancellations Adobe staff do respond and I was sent here directly by Adobe's website.

After hitting ' contact us' in an email I received from Adobe I was sent to the Contact Adobe Customer Care page which then returned an error and suggested I either ring Adobe or come here. So I came here.

I also think other CC users impacted by this price rise should be made aware that it isn't correct in terms of being in line with currency changes as Adobe is claiming.

I stand by my original post.

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