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June 06, 2006
Regional pricing
Regional pricing: MacWorld UK carries some central business info that I've wanted to see for awhile... an Adobe statement on why software pricing can vary across regions, different from just the general exchange rate. I'm still not sure I'm able to explain the exact cause -- exchange-rate volatility is cited, but there are also statements about the relative differences remaining constant over time, and holds true for all software rather than just one brand -- but the MacWorld discussion don't completely reach me either ("'cause they're greedy!" just lacks a certain persuasive flair ;-). I admit I don't fully understand regional financial differences... tax rates may have less of an effect than overall regulatory effects, for instance. But I wanted to highlight this MacWorld piece, because I know it has been a hot issue on the lists for awhile. If you've got comments then drop 'em here, and I'll flag this post for pricing staff, thanks.
Posted by JohnDowdell at June 6, 2006 10:38 AM
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Comments
I agree that some regional price differences are to be expected, but if the difference is huge and/or needs justification, it should be clearly explained, vague mumblings about exchange rate won't satisfy anyone.
Frankly I believe much of the price difference is because companies are trying to maximize the profit (though maybe I should say 'short term' here), and they think they can get away with it.
And, if Adobe or any other company is sincere about their reasons, I have one question that will settle this: Is it possible to purchase the software from your online shop at the US price for anyone who is not in the US? (paid in US$, no exchange rate involved, nothing shipped, download only. And obviously for purchasing from EU, VAT will apply). If this is not possible, can you provide your reasons?
Though I am a software vendor, I can sympathize with someone using an illegal copy because the software costs twice the amount it costs in the US or anywhere else.
What about companies selling licenses cheap in China or other places where normal people wouldn't be able to purchase a license because their general income levels are too low? Some companies might find it ethical to lower their prices for those markets (again for maximizing profits), I strongly disagree. (Crippling features for the lower price is acceptable though).
I don't find it ethical to have price differences just because you can, and you think you can make more money. Customers (well, most of them I think) are not stupid, this practice will certainly ruin customer loyalty in the long run and encourage piracy.
Best regards,
Burak
www.asvguy.com
Posted by: Burak KALAYCI at June 6, 2006 08:26 PM