Why Is Adobe discriminating their buyers?

Hello!

I'm in process of opening a small video production studio. Wanting to make everything legal, I went to check prices of Adobe software.

Here in Croatia, where I'm located, Adobe Production Premium 5.5 is priced at 15.000 Kuna, which is cca. $3.000.

Then I checked Adobe online store and found same package at price of $1.700. But when I wanted to buy it, it was available only to US.

So, can anyone explain me why I have to pay almost double the price for same piece of software? And why isn't it available online for me to buy at $1.700?

As I found out by little research, average salary in US in 2010/2011. is around $70.000 which comes out around $5.800 a month.

Do you know what is average monthly salary in Croatia? Aprox. 5.500 Kn which is $1.000.

So, while someone in US can buy three Adobe packages in one month, I have to work three months to buy one.

Also, when I contacted our BSA and asked if I could buy software in US, import it and pay taxes for it, they said "No!".

And that "No!" is because Adobe decided to put “Only for distribution in North America” on bottom of their US boxes so that software is not legal in Croatia.

Same piece of code, same DVD, same box. But because of that sign on bottom of the box, I have to pay double the price.

I find that unfair. And I find hard to start any bussines with expenses I meet before I even start my own bussines.

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Re: Why Is Adobe discriminating their buyers?

Most Valuable Participant , Dec 17, 2011

But are they still themselves, then?

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Re: Why Is Adobe discriminating their buyers?

Of course they are, Jacob.

They open their own account with Adobe and they register the software in their own, real name.  Adobe is never aware of the relative or friend who walks into a store to buy the application.

Note that I am talking about having a relative or friend buying the software at a USA store, the actual original DVD, NOT a "download" but an actual box with the software in it.

Instead of shipping the whole package to the actual buyer, the friend or relative just mails him or her the legitimately purchased serial number.

It has actually been done, it is not speculation or hypothesis.

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Re: Why Is Adobe discriminating their buyers?

Most Valuable Participant , Dec 18, 2011

I would say that Tai's workaround is about the only new thing that has been aded in this thread to this old discussion.

Fortunately, I have always at hand a friend or relative who travels to the USA, so they can bring me back the whole package at no cost, and therefore I had never thought of this alternative, but it is a very good one. I hate been charged an 50% just because I do not live in the USA.

The only drawback, for those who don't know any English, is that this way it is not possible to buy localized versions of programs. At least, as far as I know.

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Re: Why Is Adobe discriminating their buyers?

Claudio González wrote:

Fortunately, I have always at hand a friend or relative who travels to the USA, so they can bring me back the whole package at no cost

Do customs agents just ignore the goods these people are carrying then?  Aren't you asking them to lie a little to customs agents to physically bring such things into your country?  I've always thought that was pretty serious stuff, but I don't know for sure.

Note that I'm not against getting around a BS pricing policy that penalizes people outside the US - that's ludicrous.  I know that I price my own software products the same price worldwide.  I price them in US dollars and the current exchange rate at the time of purchase governs what people pay.

-Noel

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Re: Why Is Adobe discriminating their buyers?

Most Valuable Participant , Dec 18, 2011

Noel Carboni wrote:

Claudio González wrote:

Fortunately, I have always at hand a friend or relative who travels to the USA, so they can bring me back the whole package at no cost

Do customs agents just ignore the goods these people are carrying then?  Aren't you asking them to lie a little to customs agents to physically bring such things into your country?  I've always thought that was pretty serious stuff, but I don't know for sure.

Note that I'm not against getting around a BS pricing policy that penalizes people outside the US - that's ludicrous.  I know that I price my own software products the same price worldwide.  I price them in US dollars and the current exchange rate at the time of purchase governs what people pay.

-Noel

To your first question: Chilean customs agents ignore products that are not subject to customs taxes; software products and even computers for personal use are in this list. To your second one: no, my friends and relatives don't have to lie or try to hide the sofware because it's perfectly legal to bring in such things, as I have just explained.

In any case, customs officers seem nowadays more interested in drugs and weapons than in anything else. At least over here.

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Re: Why Is Adobe discriminating their buyers?

Claudio González wrote:

I would say that Tai's workaround is about the only new thing that has been aded in this thread to this old discussion…

The only drawback, for those who don't know any English, is that this way it is not possible to buy localized versions of programs. At least, as far as I know.

That might be the case, but I'm not so sure.  I know for a fact you can buy boxed Photoshop in Spanish in stores here in the USA, where there are more native Spanish speakers than in some Ibero-American countries.  And the USA Adobe store offers boxed Photoshop in French or Spanish as well as in English.

____________

Wo Tai Lao Le

我太老了

Message was edited by: Tai Lao

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Re: Why Is Adobe discriminating their buyers?

Screen shot from the Adobe store a few minutes ago:

Picture 2.png

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Re: Why Is Adobe discriminating their buyers?

I can even imagine Adobe selling me a German-language version of Photoshop directly here in the USA.  What if I had a German relative who speaks little English (yup, I have some of those too ) come to live with me in the USA?

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Re: Why Is Adobe discriminating their buyers?

Five consecutive posts? Could you maybe condense them into one [or two], next time?

Again, my understanding of pricing is that it is really "what the market will bear" and not really the cost of doing business as a global company. YMMV.

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Re: Why Is Adobe discriminating their buyers?

John Hawkinson wrote:

Five consecutive posts?

Yes, five!  Wow, you can actually count, Hawkinson!    Wonder of wonders! 

John Hawkinson wrote:

…Could you maybe condense them into one [or two], next time?…

I suppose I could, but I most likely won't.    Makes no difference to those of us using the web interface anyway.

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Re: Why Is Adobe discriminating their buyers?

Most Valuable Participant , Dec 19, 2011

And it helps in knowing for sure whom is the poster answering to, and to which of his/her coments...

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Re: Why Is Adobe discriminating their buyers?

If Hawkinson uses email to read the forums, he may not even be aware that any edits made to the posts are never seen by the email readers, as edits are never sent out or broadcast.

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Re: Why Is Adobe discriminating their buyers?

Most Valuable Participant , Dec 18, 2011

Ah, Tai.

I thought they had switched to downloads only.

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Re: Why Is Adobe discriminating their buyers?

Most Valuable Participant , Dec 18, 2011

No, Jacob, they haven't:

no.jpg

But if they had, it would be even harder to understand the minimum 50% overcharge for purchases from outside the USA.

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Re: Why Is Adobe discriminating their buyers?

Claudio González wrote:

No, Jacob, they haven't:

no.jpg

But if they had, it would be even harder to understand the minimum 50% overcharge for purchases from outside the USA.

Precisely.

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Re: Why Is Adobe discriminating their buyers?

Jacob Bugge wrote:

Ah, Tai.

I thought they had switched to downloads only.

Jacob, I know literally hundreds of people like me who would never, ever buy any software that is only available as a download.

Freeware is fine, but commercial software without physical media is in no way acceptable.

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Re: Why Is Adobe discriminating their buyers?

Adobe Community Professional , Dec 21, 2011

The price of Apple products also varies per country, and Horace Dediu from Asymco is building a big Mac index: http://www.asymco.com/2011/12/20/the-big-mac/

Also, keep in mind that most corporations in the US don't pay taxes, but receive some from the state, it is not often the case in Europe.

But I never understood why software is so cheap in the US compared to the rest of the world, when the average income is so high...

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Re: Why Is Adobe discriminating their buyers?

Adobe Community Professional , Dec 21, 2011

And about that stock price comparison, one should maybe just take what Apple makes in software it creates to compare to Adobe...

Apple is in so many markets, creates so many of them that few corporations could be compared fairly. But still, it stock is very undervaluated compared to Amazon or other companies.

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Re: Why Is Adobe discriminating their buyers?

Mon dieu, Pierre!  You fail 'Economics 101' in every respect.   

The growth of the value of a stock has nothing to do with revenue (sales) directly.  It is a reflection of the perception of investors as to its value.  It doesn't matter whether the company makes its money from the sales of hardware, software, enchiladas or crêpes.

If the investors think corporate executives are turkeys who don't know their own clients and their markets, the value of the stock goes to hell.

The comparison of the price of the stock of two corporations over the same time period is totally valid and absolutely fair.  The point is that Adobe executives are, at this time, pretty close to worthless or perceived as such.

If you invested in Adobe five years ago, you're hurting badly today.  If you invested in Apple five years ago, you're doing pretty damn well today.  It's that simple.

Read the last sentence in my post #36, just below the graphics:

"I don't think the Adobe bean counters get it."

That was the point of highlighting what has happened to Adobe stock.

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Re: Why Is Adobe discriminating their buyers?

Adobe Community Professional , Dec 21, 2011

I don't claim to be good at that, I've got some maybe distorted point of views on the topic...

I meant that to compare Adobe to Apple, we should look only at a subset of Apple.

I'd rather say that it is a reflection of the speculation over the possible speculation of speculators as to the possible quick change it might have and the immediate revenue it might bring to them. If Apple was valuated correctly, wouldn't its P/E ratio be higher?
I don't think that it is correct to speak about investements in regards to the stock market, but rather, say speculation. I don't think that many people invest nowadays over a long term period. (How many companies still give dividends? Retirement funds want quick money. Former workers putting their replacement out of the company for quick Gains. Hello, Kodak that started the trend? (and Adobe, recently, the beancounters got that right, stock went up in last quarter ))

Most of the stock exchange, erm exchanges are done by computers in miliseconds (and it costs billions when they go haywire); Ratings companies give bad notes to countries or banks that followed their AAA+++ ratings on rotten placements... Who rates S&P & co that did not forecast the Subprimes Scandal?

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Re: Why Is Adobe discriminating their buyers?

LOL !  You're hopeless, Pierre. 

____________

Wo Tai Lao Le

我太老了

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Re: Why Is Adobe discriminating their buyers?

The bottom line is that Adobe executives are pushing the value of their company down through sheer incompetence.  The comparison to Apple just shows that well run companies are capable of thriving during the same time period so it's not the whole economy suffering during those five years.  I could have easily cited many, many other examples.  Apple was simply convenient and the most humiliating for Adobe to be compared against.

____________

Wo Tai Lao Le

我太老了

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