Why Creative Cloud for Europe is so expensive?

[YahorShumski]

Just curious why the price of Creative Cloud for Europe is 60% higer? Okay, maybe there are some taxes etc but World of Warcraft online game with the same business model charges pretty the same for subscription in US and Europe.

Looks like discrimination, yeah?

[David__B]

Hi Yahor,

This is the info I have.
 
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.

-Dave

[jb_uk]

There is no retailing and no reselling with Creative Cloud. The cost of doing business in Europe is not 50% higher than doing the cost of doing business in North America. That is especially true for web-based businesses.

This strikes me as the key phrase in your reply "customer research that assesses the value of the product in the local market" - in other words, you charge whatever you think the market will bear. You've concluded that you can charge Europeans more for the same product, and they will purchase it anyway. If that's true it's simply because Europeans have become inured this kind of business practice on the part of large American and multinational companies.

[RobinSTC]

Really, you might think that your customers are muppets, but its best not to say so quite so brazenly.

Users who are happy with US English should be able to buy at the US price, wherever they are.

[Zbig_T_]

I'd buy a Creative Cloud subscription for Euro equivalent of the US price plus taxes any day now without thinking twice. But 61€ vs. $50? That's just shameless rip-off. And now you publicly admit that you're fleecing Europeans simply because you think you can - now, that's just low. No Creative Cloud for me, thank you very much.

[ian_the_scot]

Just like wdyp I was really excited by the new way of ordering the latest Adobe Suite and all of the benefits that the Cloud brings. However I shall not be doing so as in concert with the posters above I consider the pricing for the UK and Euro zone to be a rip off!!

To be glibly told that it is local forces and the costs of doing business here that accounts for the huge discrepancy makes my blood boil. This is an Internet based product and we are dealing directly with Adobe. No packaging or shipping or paying rents here. When I can pay (what I think is reasonable) ie the same as the quoted Dollar price then I shall gladly join up.

Until then I am sure there will be other avenues available in due course driven by the demand created by the unfair pricing structure.

I am very disappointed at the attitude of those who thought this would be acceptable and fair to charge such price variations across the globe for essentially the same virtual product.

I urge those at Adobe to rethink the strategy before it launches a whole slew of potential customers into the seedier side of software procurement. This is a chance to capture the next generation into a whole new way of thinking …… don't waste it.

[Patrick_N2]

I agree on that, nethertheless it was always this way with Adobe when purchasing products online. At least you got it a little cheaper when purchasing from a distributor.

For Austria if you deduct the sales tax, it's still 25 % higher price (as Adobe seems to calculate 23 % tax at their prices). Not even sure if it's deducated at all if purchasing as company with European VAT. 

Didn't find such an option.

And for distributors, I checked out on those, they sell it "excluding tax" with 63 €, but you have to pay 12 months in advance.

This is really double the price. In respect of resellers, sure they can charge what they want, but not adobe with 25 % higher pricing for the same product.

Someone mentioned, let us get the english version. The 49,99 US$ Version is already multilanguage version according to this website, so no difference in the product itself. Just pricing.

I also urge Adobe to rethink this finally, as it's not the cost of selling it (Microsoft doesn't do that either and has the same higher costs in austria - which I doubt exist).

I can only agree, they sell it what they think the marked will pay. I stick with the old version (now since CS3... ) as I boycott such a behaviour, even I am missing all the new features.

First you are excited to see the new product, which I really think is great, but not like this old fashioned behaviour. 

Thanks

Patrick

[David.Thomson]

You cannot even purchase the U.S subscription from adobe store because it won't let you use an address outsite of america. This disparity in price is probably offset against american purchases effectively discounting for Americans at the expense of customers outside of America. This again shows that the creative monopoly that is Adobe unfairly weights competiveness towards American companies. It might be good in the long run and spur competitive products to emerge in Europe that can then become the creative standard.

I was really interested in subscribing to Creative Cloud but I am so angry at this discrimination that I am now not going to purchase and will be looking towards alternatives for my own use and will recommend these to my employers.

I think Adobe has done a good job at pushing away a loyal customer may it long continue.

[Mark Southee]

David,

Can you clarify what you mean by "use an address outside of America". Do you mean the IP address of the machine you are trying to register with? There are perfectly legal ways of using a US based IP address from outside of the US.

[David.Thomson]

When you purchase the subscription you need to use a credit card which needs an address for verification. The purchase page does not allow you enter an address that is not States based. The transaction would not verify without a valid address. Pretty clever though on Adobes part in restricting where people purchase their products from.

[Guest]

I do wonder how many legitimate licences Adobe would sell in Europe if their prices were closer to the North American offerings?

Perhaps the cost of doing business in Europe would be less if the prices were more affordable meaning Adobe sales staff didn't have to expense account so many dinners and drinks to try and persuade people to pay over the odds?

I had hoped Creative Cloud would signal a breakaway from the obscene disparity, given that there are no resellers or middle men taking a cut but Adobe obviously feel that if they can charge more they will. Shame on them for their short sighted, greed centric attitude.

[p.pedaci]

This is unacceptable, and you know it. Nobody would rant if the price difference was in a reasonable range, but 50%? Are you serious?

It's actually kind of offending, honestly, since it's obvious that Adobe thought »They'll buy it«.

I really do hope someone would come up with a comparable product, just to bring some equilibrium into the market.

[PNLCG]

I accept that there can be some price differences between various countries but if I but the download from your US site yours costs would be the same as if you werte selling it to a USA customer.

The UK upgrade to Photoshop CS extended is £444 inc. VAT or $715, the USA price is £248 or $399  this is a mark up of $316 £196. In Australia the cost is $670 a mask up of $271. In Europe the price is €477 or $616 a mark up of €168 or $217.

Adobe is being deliberately anti non American and their pricing could be seen as a deliberate policy to profiteer from non American customers.

Please think again you have time to redefine your pricing. It cannot cost $316 more to download from a UK site rather than a USA site. If so Adobe should seriously consider shutting down its UK operations as they are very inefficeint. As are their European and Australian operation.

[pf22]

David__B wrote:

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.

That may well be so, but guess who decides what price the reseller BUYS the product from Adobe at. Yeah. Adobe.

[Strik]

I totally agree with all the above. Adobe should reconsider their european pricing plan and they should appologize!

[David.Thomson]

The real question now seems to be how do we make Adobe take notice of the general dissastisfaction of their price structure? I've been reading that this has always been the case that Adobe is over priced outside of America put the rest of the development community at a dissadvantage to out american cousins. It seems that Adobe is happy to have everybody whinging becuase ultimately no action is mounted that can cause real damage to their bottom line profits.

Perhaps we should start a real campaign? Set up a facebook page let as many people know as possible highlighting the issue and flagging up alternative adobe products.

Heres a link to a paper on Price discimination http://www.coleurop.be/content/gclc/documents/GCLC%20WP%2007-05.pdf

There is also information about European action against price discimination http://en.wikipedia.org/wiki/Article_102_of_the_Treaty_on_the_Functioning_of_the_European_Union

Without action Adobe will still continue to fleece a premium from Europe.

[gregkeo]

A great idea David - is there anyone out there prepared to give a little time to set up a fb page and/or other means of rallying international consumer support? In Australia we are subjected to the same inequitable pricing as other non-US customers by Adobe and other US companies. While there isn't a viable alternative yet to the Adobe suite it will happen and I'll be treating Adobe with the same contempt it is showing its current international customers ...........

[YahorShumski]

I can set up the Facebook page but we will need help with promotion, content, legal issues etc

[Patrick WOU]

I'm one of the many Europeans fed up with Adobe's price policy.

No Creative Cloud subscription nor upgrade for any of my Adobe products until prices are fair in Europe.

Adobe already killed off Flash by their behaviour.

It seems the only way they learn something is the hard way.

So be it ...

[moonbeetle]

"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."

BS. None of the costs mentioned apply to me as an individual customer who's been buying Adobe Software since the PageMaker era. It might be a shock but in the EU most speak english, know how to order software online and some even use a qwerty keyboard as its handy for shortcuts. Why on earth would Adobe try to reach us by local press or send a sales person to our door?

You are discrimination customers. I'm going to postphone my upgrades until Adobe comes with a pricing that's fair towards the EU. Since I would only use two or three software apps from the creative cloud anyway, I have all the time.

[AntoineM_]

"There is a very big difference with the past though : in the time of boxed or translated products, I accepted a higher price.

In this time of direct downloading the original English version, I don't."

Exactly my thoughts!

The explanation of funding promotional activities, seminars etc. through creative cloud subscriptions sounds very unfair. They could be made paid events, thus be paid by the professionals who actually attend or use such services.

[les_meldrum]

This is corporate rubbish, you are ripping off European customers and hopefully they will revolt and refuse to buy. Greed is at the root of these decisions don't insult us further by waffle and lies. I think creative cloud looks like a great concept but I wont be made a fool of by paying over the odds.

Disgruntled non customer

Les Meldrum

[Coacoara2012]

I was about to sign-up for the Creative Cloud but no way I'm prepared to pay 60 Euros a month knowing you are offering the same product/service in the US for $50 which means that on average I'm paying $25 extra every single month for the exact same product. You can tell all the pretty stories that you want to justify that but we all know this is BS.  But that's ok, at the end of the day Adobe as a company can do what it wants but you'll be doing it without me a customer and hopefully Adobe one day will realize that treating customers fairly and respectfully is a cornerstone for future success. Of course, shareholders want profit now so that concept probably doesn't fit the corporate agenda.

Anyway, at least thank you for the opportunity to voice my opinion.

Kindest regards,

Hans

[Billygunn111]

Will adobe re-look at the European pricing in light of this announcement of increased profits for Q2 which "exceeded" their expectations.

http://www.adobe.com/aboutadobe/pressroom/pressreleases/201206/Q212Earnings.html

Instead of rubbing it into Europeans faces that they are making these profits, but choose to still rip us off 50% more than US customers.

"The initial transition to Creative Cloud exceeded our targets, demonstrating that creative professionals see significant value in the new subscription-based offering,”

Mark Garrett, executive vice president and CFO of Adobe.

[Spamhunter]

Missing from the article, I notice, was the regional breakdown, e.g. US v. EU.

I thought the key info was: "These targets reflect a weaker demand forecast in Europe."

No doubt they'll blame Greece rather than their own pricing policies.

Either way, I'm happy to report that I am in no way responsible for Adobe's increased Q2 profits.