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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.

    Claudio González
    Claudio González
    Legend
    July 13, 2012

    Noel,

    I can only speculate that someone, somewhere MUST know. However, I have not read any replies from him/her/them, so that info has not come my way. All I have to go on, is speculation from other users. Some might be correct, but they might also be wrong too.

    Being in the US, and most often buying my Adobe software, from the Adobe Store, I probably have not followed all potential threads, and then, those would only have been in particular product forums - and I only have time to monitor about 8, so could well miss something.

    I do not do business on an international level, so miss a great deal. However, I know that when I had to shoot in Canada, or Mexico, it cost me a good deal more, to do so from the US. Does that apply to an international company, with offices in many countries? I do not know.

    Never had to shoot in the UK, or Europe, but do have one observation that might, or might not have any bearing on this - in the UK, there are a few US wines available, though usually not something that I would drink in the US. Not taking the "London markup" into account, those wines are about +100 - 200% higher at retail, than in the US. OTOH, I see many very good French wines there, that cost about 60 - 70%, of what they do in the US, even WITH the "London markup."

    With international business, there are tariffs, local expenses, that do not exist elsewhere, and monetary exchange differences. Still, I would speculate (that word again!), that there are some other factors, but I just do not know what those would be.

    I would love to hear the official stance and explanation from Adobe, as this sort of question does come up quite often - I just do not know who to ask.

    Hunt


    Bill, we are talking about software that is downloaded, not about wines that have to be bottled, labelled, shipped, passed through Customs, pay local taxes and be distributed locally.

    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.

    Claudio González
    Claudio González
    Legend
    May 18, 2012

    Farken, you seem to have missed the tongue-in-cheek tone of most messages in that thread. The naked truth is that NOBODY has ever given a mildy reasonable explanation for these surcharges. More misterious nowadays when there are no physical transferences involved, just downloads; and when if I charge to my credit card the equivalent in pesos (our local currency) of any purchase I make in the Internet, the seller receives the full price he charges in his own local currency, whatever that may be. Obviously, for the banks it doesn't make any difference if they pay rubles to a store next door or yens to a company 20,000 miles away; if there is any extra cost, they will charge it in the card holder's account.

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