Why does the creative cloud cost more in Australia than US

[Frenchy74]

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?

[zumek]

No offical comment from Adobe on this one????

If exchange rate fluctuations is the real issue here; why don't Adobe allow us to pay in USD and it'll come out to be the same for everyone!

Was looking forward to signing up to the Cloud, but not willing to pay $20 more a month just for being in AU! AUD > USD!!!

[Claudio González]

No, there has never been an official Adobe comment on this that I am aware of, and I very much doubt we will ever get one. And, to the best of my knowledge, it's not a matter of fluctiating exchange rates. As far as I know, when I use my international credit card to pay for a purchase in the USA from a firm quoting prices in USD, the required total amount in USD is deposited in that firm's account at the very moment that the purchase is completed. In due time, my bank will charge me in CLP at the appropriate rate of exchange, plus interests and other charges if I chose to pay in installemens, but none of this affects in any way the deposit already made in the seller's account for the full quoted price. More cleraly, if I could buy directly from Adobe at USA prices, Adobe would receive exactly the same amount it receives when selling to a USA resident.

[the_wine_snob]

Claudio,

I also cannot recall any official comment from Adobe, on the intricacies of the pricing structure, though the discussions come up (usually in the various product forums) quite often. All that I have seen are speculations, from users, however I certainly might have missed those "official comments," as I spend more time trying to solve problems related to the products, than discussing pricing of the products.

Hunt

[Noel Carboni]

Given what we have seen in other areas, I wonder if they even know why things are the way they are.

-Noel

[the_wine_snob]

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

[Claudio González]

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.

[the_wine_snob]

Claudio,

I am fully aware of that. It was but an example of how some things differ, country to country.

Does it apply here? I have no idea, but it might, as there are many monetary considerations, when international commerce is involved.

What is your "speculation?"

Hunt

[Claudio González]

That the surcharge may have had sounder reasons when one bought disks and printed manuals, that had to be boxed, labelled, ... When one is talking only of downloaded softwares, well ...

[the_wine_snob]

Claudio,

Good point, and one, for which I have no answer.

In speculative mode, there is the matter of maintaining an office, of some sort, in the country, and perhaps a support system, of some sort.

Beyond that, I do not have a thought.

Hunt

[Claudio González]

Bill, Adobe has one Latin American office based in Mexico, and a Spanish one based in Spain; that's the lot for the whole universe of native Spanish speakers. There are no Adobe ads in the local media. What is one paying for, then, with the 50% surcharge?

And I hate to say this, but we are just repeating the same things that have been posted dozens of times in this forum.

[PECourtejoie]

"There are no Adobe ads in the local media." Even in graphic design, photography magazines? they don't support OFFF, or other festivals/conventions/user groups? I'd be surprised if it was not the case.

[Jackiejack85]

Sorry to bump an old post, but here's something worth a mention-

If you buy Adobe CS6 Master Collection (outright, not creative cloud) in the Australia Adobe education store, you can buy the download version for $549 AUD.. And you don't pay GST. Compare this to the US store, where it is priced at $799... and, yes, depending on the state, there are sales taxes in the US.

So to my fellow Aussies, if you really need the Adobe programs, wouldn't it be worth enrolling in a TAFE or university, getting your ID card, send a copy to Adobe, buy the programs at a huge discount. You could always then withdraw from your course?

Here's my situation-

I'm an Australian citizen currently living in the US on a student visa studying graphic design at college. As I still have credit cards with an Australian billing address, it was a better deal for me to purchase from the Australian store. I purchased from the Australian store, submitted my student ID card from the US college, which Adobe happily accepted. I am the envy of my classmates who have to dish out hundreds more.

So Australians don't always get the worst deal.

[Noel Carboni]

We tend to have an external view of a company as well-run, with someone well in charge of every aspect of operation, and a big master plan that all the cogs implement smoothly by meshing perfectly together.

That's not a very good description of any big high tech company I ever worked for.

In reality a lot of time one hand didn't know what the other was doing; there was internal competition; and because of turnover, culture, inertia, poor control, or whatever things were the way they were because they were already working (after a fashion) and no one wanted to upset them.  Think "Dilbert".  Seriously.  To the point where good work was punished and stupidity rewarded.  SERIOUSLY.

How pointy is the hair of the bosses inside Adobe?  We may never know.  Just don't assume there's a valid, justifiable, stated reason for every policy.

-Noel

[the_wine_snob]

Noel,

You just "burst my bubble." I had imagined a wise, all-knowing wizard at the very top, magically directing all departments below them.

Hunt

[John Hawkinson]

You just "burst my bubble." I had imagined a wise, all-knowing wizard at the very top, magically directing all departments below them.

Bill, you need to watch out for wise, all-knowing wizards. There was a certain Miss Dorothy Gale who also believed that there was one of those, and look how it turned out for her? (In the end, admirably!)

[Noel Carboni]

Ooh, NICE connection there, John (considering you're talking about the land of Oz and the subject of this thread).  Hats off to you! 

-Noel

[crewmark]

30% per month more in Australia for an online service with a country that Australia has a free trade agreement is criminal.

What could possibly be the reason other than Adobe AU demanding the extra.

Adobe AU did not have an online store for quite sometime so I bought through the US online store WITH an Aussie credit card with no issues.

[JoaoCP]

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.

[deane4work]

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]

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

[John T Smith]

http://www.zdnet.com/au/adobe-cuts-aussie-pricing-ahead-of-parliamentary-hearing-7000011161/

[Claudio González]

Good for Australia and the Australians. Wish other countries, mine included, would do the same...