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Frenchy74
Participant
May 17, 2012
Question

Why does the creative cloud cost more in Australia than US

  • May 17, 2012
  • 4 replies
  • 24931 views

The Aussie dollar is currently stronger than the USD and heas been for 12 months, why do we have to pay a 25% premium over US customers for an online service that shouldn't be affected by shipping or import taxes?

    This topic has been closed for replies.

    4 replies

    D
    deane4work
    Participating Frequently
    December 18, 2012

    Answer following one question survey if you want Adobe to know how you feel:

    http://www.surveymonkey.com/s/XGZCPJ5

    Please pass on to any Adobe CS users you know - the more the merrier

    Regards

    Claudio González
    Claudio González
    Legend
    December 19, 2012

    What we need in an empowered international antitrust commission...

    J
    JoaoCP
    Inspiring
    November 1, 2012

    This interview (from 2007) with the vice-president of product management in the Creative Solutions Business Unit at Adobe brings some light to the issue:

    http://www.creativepro.com/article/creative-suite-pricing-varies-throughout-world

    Some excerpts:

    "We do testing in each region and get feedback from customers. We have not found that the value fluctuates much over the years. The value associated with CS3 is incredible, and customers react to that. What I've been hearing from customers is that they see the value and appreciate it."

    "We don't take into account the currency per se when we're determining the value of the products in the local market."

    "We establish pricing in each of the regions based on what we've seen historically and the value of the product."

    "The process of establishing pricing is rigorous; we go through extensive market research."

    Bottom line: Adobe fixes its prices outside U.S. based on the value perceived by the users. In the case of Brazil (where I live), Adobe's researchers concluded that we love so much its products that we are eager to pay US$ 95 for a Creative Cloud subscription that costs US$ 50 for North Americans. Or that we are very proud for paying US$ 2,525 on a CS package that U.S. residents  buy for US$ 1,299.

    V
    Vibrant_Whirl16B8
    Participant
    June 3, 2012

    It gets even worse if you want to upgrade an entire suite. I just tried to upgade my Design Premium at the default Adobe store (US as it happens) at the quoted price of US$749. The transaction couldn't be completed and it was suggested that I try again or call a phone number. Eventually, I made it to the Australian store, but the upgrade price was $1137. The current conversion would be A$773.37. Add 10% GST to the Australian price and it becomes $1250.70. That's a 67% increase on the US price!

    Claudio González
    Claudio González
    Legend
    June 3, 2012

    Textas, you mean that the transaction failed, not because only American  credit cards billed at an USA valid address were accepted, but because of some undeterminate network failure, and that everything will eventually function properly if you continue trying again? Now, THAT would be NEWS, although I must say that I very much doubt it.

    I know of many people who would be willing to try as many times af necessary if they knew that paying American prices with a non-American credit card is only a matter of patience.

    V
    Vibrant_Whirl16B8
    Participant
    June 3, 2012

    Actually Claudio, you have completely missed the point of my post and its relevenance to the question asked by the OP. But for your information, I did not try to 'beat the system' as you infer. I replied to an email promotion regarding the the CS6 upgrade. That took me to the Adobe store and I selected the 'Buy upgrade...' option. To complete the transaction, I was prompted to log in with my Adobe ID which I did. But then, after clicking on the button to complete the purchase, a pop-up told me that there was a problem with the transaction and to try again, but if I still had no success, to call an 800-something phone number. After trying one or two times more, I gave up and looked for a means of contact other than the phone number. That's when I ended up linked to the Australian store and discovered not only that I had been attempting to place the order through the US store, but the price was hugely inflated. Does that make it clear?

    By the way, when I ugpgraded to CS5 two and half years ago it cost $1050 including GST and the Australian dollar was valued at around 80 US cents. It is currently close to parity and until recently had been close to US1.20 for some time. So, I don't see how Adobe can have any excuse for the exhorbitant price difference.

    Claudio González
    Claudio González
    Legend
    May 18, 2012

    The matter has been discussed at length many times. Here is a recent thread:

    http://forums.adobe.com/thread/933987?tstart=180

    F
    Frenchy74Author
    Participant
    May 18, 2012

    Hi Claudio

    Please excuse my ignorance in this matter but how does it cost more to collect money from International credit cards? There are many software companies that have software available as downloads but dont rig the price differently for different countries. And why do they have to prepare different downloads? Most software comes with language options during the install these days, the only reason I can see for having different downloads is for different pricing.

    PECourtejoie
    Community Expert
    PECourtejoieCommunity Expert
    Community Expert
    May 19, 2012

    PECourtejoie wrote:

    I think that the local offices also have to pay for buildings, employees, web hosting, advertizements, sponsorships, and sometimes translation costs (for their website) -and I know that English is spoken down there.

    As I said:

    "...they respond with vague, irrelevant reasoning and never directly answer the question in any convincing way which makes sense."

    We're talking about digital downloads here: byte for byte (and delivery method) identical to the product enjoyed by US customers.

    An Australian computer mag is currently collating examples of blatant overcharging of Australian customers by tech vendors (not just Adobe but Adobe certainly is listed). It's probably a mere sideshow in the scheme of things but if it causes the Adobe boardroom to even raise an eyebrow it may be worthwhile. People power has occasionally been known to influence Adobe pricing policy.

    The Australia tax: We list overcharging of Australians by tech vendors

    http://apcmag.com/overcharge.htm


    John, I'm not "they"

    I am also charged more than others.

    I tried to make a reasonable assumption about one of the elements that can explain the price difference. (If the Adobe local offices are separate legal entities)

    Another thing to keep in mind is that they cannot stick to the exact conversion rate: if they are very close to it, they would sell at loss when the rate changes... (I was able to get a MBP for the price of a MacBook when the Sterling Pound made a dive compared to the Euro in 2008.) I guess that they set a confortable buffer, and try to stick to it (otherwise, prices would change often, creating confusion and anger to their customers and resellers.)

    Maybe that if we add all the parts, a chunk of the price difference can be explained. Then, the rest is "explained" by the fact that Adobe is not a non-profit company.

    I sure would want to pay less...

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