Adobe's reasons for the inflated software prices outside the US

[calathumpian]

For those happening upon this group and wondering what it is all
about, here is some background.

Adobe operate online stores for many regions of the World. If you
compare the prices for the software products at any of these regional
online stores, they will always be more expensive than the US store,
even when taxes and currency exchange rates are taken into account.

Adobe have claimed (in online articles) that the prices allow the
distribution chain (wholesale and resale) to make a fair profit. On
the face of it this sounds fair enough. If you talk to any wholesaler
or retailer in those countries and ask them how much they make on
Adobe software products, the margin is somewhere around 5% and
certainly no more than 10%. When taking this margin into account, the
gap between US prices and the prices in the regions is still
anomalous.

Another argument Adobe have put forward is that their market research
has found that the price represents what the customers perceive as
fair value for the product they buy. In other words, Adobe are arguing
that we, the customer, think that we should give them lots of money
because we love the product so much. Of course, the converse of this,
and what is more likely the truth, is that Adobe price the product at
a level that they think we will pay - because there isn't much else
around that will do the same job.

Neither of these arguments explain why the US price for the same
programs is so much less. Surely the US customers have the same
"perceptions" of the software as other customers around the World?
Surely the US has a distributions network that should also expect to
make a fair profit from selling the software?

Now for the killer punch.....Adobe also allow download versions of
many of their software titles. These programs aren't stored on
different servers spread throughout the regions as well as in the US.
The downloads all originate from the same server, regardless of the
country from which the download is originated. The BIG difference is
that the price for these downloads (from the same server) has the same
mar-up outside the US as the boxed product does. There is NO
JUSTIFIABLE REASON FOR THIS RORT.

So, Adobe have a policy of gouging money from its customers outside
the US. Lovely corporate behaviour isn't it? What can we do about it?

Firstly, do some research and if you can find an alternative to the
Adobe product that will do what you need it to do, then buy it.
Chances are it will be a lot cheaper as well. I changed from Adobe
Premier Pro to Sony Vegas for my video editing. Turns out that this
was an excellent decision as I like the Sony product much more.

Secondly, skip as many "upgrades" as you can. Hold off until they
include a feature that you absolutely must have - and even then think
about it.

Thirdly, buy from the US online store if you are buying a new Adobe
product. Note that I stated "new product". Adobe have built in a lot
of cross-checks to prevent international customers from using the US
online store and this might end up in tears if your original product
was purchased outside the US and refuses to upgrade with an online
purchase. You do have to do some sneaky stuff to buy a new product
from the US online store, while living outside the US, but it can be
done.

Fourthly, If you, or anyone you know, is going to the US, buy the
software from there.

Fifthly, complain long and loud to anyone who will listen - including
your Government (if your country has a free-trade agreement with the
US.)

In Australia, even after taxes and exchange rates are considered,
Adobe products are between 50% and 60% more expensive than buying from
the US. Adobe need to realise that the Global Economy is here to stay
and that customers are savvy to World pricing policies. Make sure you
hit Adobe in the hip pocket with any purchasing decision that you make
- and then let them know about it.

Cheers

[Alaric]

The fundamental reason for the software pricing differential is
corporate greed on the part of Adobe.. I always take pains to
introduce my clients to alternative products which can perform the
same function as the Adobe products.