Many thanks for contacting Microsoft regarding the difference in
recommended retail prices between the UK and the US.
I was sorry to hear that you were not happy with the cost of the
purchase price of product here in the UK, in comparison with the cost in
the US.
The pricing model was developed using careful evaluation of the required
infrastructure, associated costs and industry standard pricing models.
Purchase prices are consistent and fair within geographic bands and
calculated using GDP (Gross Domestic Product) per capita.
I hope this helps you understand the pricing structure.
Kind Regards,
Clint McCarthy
Response Management Team UK
Microsoft Ltd
Can anyone tell me WHAT, precisely, has GDP per capita got to do with
product pricing? I have NEVER, when employed as a Group Management
Accountant, been in ANY organisation that factors in GDP as part of it's
pricing structure.
SNAKEOIL!
> The pricing model was developed using careful evaluation of the
> required infrastructure, associated costs and industry standard
> pricing models. Purchase prices are consistent and fair within
> geographic bands and calculated using GDP (Gross Domestic Product)
> per capita.
>
> I hope this helps you understand the pricing structure.
>
> Kind Regards,
> Clint McCarthy
> Response Management Team
> UK Microsoft Ltd
>
> Can anyone tell me WHAT, precisely, has GDP per capita got to do with
> product pricing? I have NEVER, when employed as a Group Management
> Accountant, been in ANY organisation that factors in GDP as part of
> it's pricing structure.
>
> SNAKEOIL!
Perhaps, IOW, YHBT?
--
Cheers, Rafael
http://www.faqs.org/faqs/linux/advocacy/faq-and-primer/
http://www.hyphenologist.co.uk/killfile/anti_troll_faq.htm
Maybe by GDP they means gross domestic payoff. It's quite gross. It benefits
the domestic market (America). It's also pays off because the users are
locked in anyway... why not just rip them off? I'd be angry if I was buying
some Microsoft product. That said, places where I work pay Microsoft money,
so I don't expect wages and employment figures to get any better. I'm sure
Redmond is lighting a candle and poppin' a nice bottle of champagne though.
--
~~ Best wishes
Roy S. Schestowitz | Windows XP: Dude, where's my RAM?
http://Schestowitz.com | GNU/Linux | PGP-Key: 0x74572E8E
Swap: 1036184k total, 543912k used, 492272k free, 49408k cached
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The answer to the above question, though, is simply that Microsoft's
customers recognize the value and willingly pay for the use. The
anti-Microsoft people postulate some mysterious compulsion or similar force
that is applied by Redmond to pay against their wishes, but that is inane.
However, it seems to be par for this particular course with the OSS people.
> It seems that the notion of value pricing, i.e. charging what something is
> worth rather than what it might cost to produce, is lost on the OSS
> people.
It seems to be lost on you too.
Please feel free to explain to us why the price, based on GDP, is not
highest in the U.S. of A.?
The required infrastructure is a DVD copier and packaging for the
retail versions, and even less for the OEM versions.
>, associated costs
Bill G's $130 million house, large bonuses and stock options for MS
executives, and of course the hundreds of millions of dollars in waste
as MS had to throw out 2 years of coding and start over due to
security issues that they still have not resolved with the final
version. Yes, you the customer are paying for this. I'd be happier
paying a company that didn't overcharge me because of their consistent
screw-ups.
> and industry standard pricing models.
MS says they are the standard, and when talking about their clientel,
they say they are going to "hit them harder". Now be a good MS fanboy
and fork the dough so bilge, I mean billg can buy a bigger yacht than
Larry.
> Purchase prices are consistent and fair within geographic bands and
> calculated using GDP (Gross Domestic Product) per capita.
(Figures in US dollars:)
USA : GDP per capita = $41,600
UK : GDP per capita = $36,760
The price of Windows Vista in the UK is significantly higher than in
the USA....
>
> I hope this helps you understand the pricing structure.
No, of course it doesn't. What kind of fools do you take us for ?
Instead of answering the question, you have given us a response that
leads us in exactly the opposite dirrection, making our questions more
poignant.
>
> Kind Regards,
>
> Clint McCarthy
>
> Response Management Team UK
My, my, I see that some of the price for Vista is spent on a "Response
Management Team" for just the UK. Apparently MS has given up all
pretenses of supplying decent software, and now spends their money on
marketing and "response management", which seems a shallow euphemism
for FUD and lobbying. Hey, I have a new idea : software companies
should spend their money making decent software instead of lobbying
governments. MS has a different idea, apparently.
Dean G.
>
> The answer to the above question, though, is simply that Microsoft's
> customers recognize the value and willingly pay for the use.
You obviously have NO conception of what GDP per capita is, have you,
and absolutely NO answer as to why it should be used as part of a
pricing policy. Go read up on it, and then return to tell me, a
Management Accountant (and if you don't know what THAT is either, go and
find out) why on earth any organisation should use it as a part of
pricing, other than to justify a rip-off product price?
My reply to Mr McCarthy:
Dear Mr McCarthy,
Thank you very much for your reply. I would, however, be obliged for
some clarification. As a retired Group Management Accountant, I have
NEVER worked in any organisation that has used "GDP per Capita" in their
pricing policy, and furthermore, as the GDP per Capita of the UK is
considerably less than that of the USA can you clarify how that
translates into a pricing policy that, given the current exchange rate,
and as (presumably) the Vista DVDs are pressed in Ireland as were the XP
CDs, thus having fairly inconsequential distribution costs, puts the
retail price of Vista like-for-like at almost DOUBLE that of the USA?
Regards
In short, M$ think that UK windoze sucker....er....users will pay more
for their product. Consequently they will shove the price up to what they
think the market will stand. In other words, they stick with their old
motto "Never give a sucker an even break". They're using (IMHO) flowery
language to disguise what they're up to.
If you recall, the automotive industry used to do the same thing in the
UK, which they called "Treasure Island". It was cheaper to buy a car in
Belgium pay the VAT, then ship it to the UK. You still paid the difference
in UK VAT, but it still turned out *cheaper* than buying it in the UK.
However when the EU brought in rules which allowed you to buy a vehicle
*anywhere* in the EU & ship it back to the UK (& that dealers were
*obliged* to service the vehicle regardless of where it came from) the
prices quickly dropped here.
IMO, M$ are trying to pull the same stunt.
--
Contrary to popular belief, trolls *can*
tell the difference between their arse
& their elbow.
They can't talk out of their elbow.
>
> IMO, M$ are trying to pull the same stunt.
>
Not "trying" - they ARE!
Yeah, like an advertising circular helps me understand
modern supermarket pricing of fruits and vegetables. :-P
>
>
> Kind Regards,
>
> Clint McCarthy
>
> Response Management Team UK
>
> Microsoft Ltd
>
> Can anyone tell me WHAT, precisely, has GDP per capita got to do with
> product pricing? I have NEVER, when employed as a Group Management
> Accountant, been in ANY organisation that factors in GDP as part of it's
> pricing structure.
>
> SNAKEOIL!
Well, FWIW GDP/cap is a metric on how much disposable income the
consumers can spend on various nonessentials like computers and
Microsoft Windows Vista(tm). The trouble is that British GDP/cap
is less than US GDP/cap.
That dog can't even get out of bed, let alone hunt. :-)
--
#191, ewi...@earthlink.net
Q: "Why is my computer doing that?"
A: "Don't do that and you'll be fine."
--
Posted via a free Usenet account from http://www.teranews.com
Heh! THIS should be good. ;-)
IF I get a reply......
The reply will be:
"Who cares what we charge for our software? No one is making you buy
it, and no one is making you live in the U.K. Use another OS if it
pisses you off so bad. Freedom of Choice."
...
> "Who cares what we charge for our software? No one is making you buy
> it,
If that is the reply, then there'll be no further problems in getting a
refund for the unused Product (of Windwos) when you don't want it
pre-installed on a laptop...it would be /VERY/ interesting if that reply
came back.
There are multiple factors, of course. Contrary to popular images, the
people of the United States of America are not altogether that prosperous.
We have been asked to carry the world's burdens in terms of building up many
backward nations such as Iraq and Afghanistan and so are taxed to the
extreme. If you can get a foreign newspaper over there, you might see where
our president has asked for 2.9 trillion dollars to meet our domestic and
world obligations. That doesn't leave a lot of room for luxuries like
Windows Vista Ultimate. What little price relief Microsoft can afford, they
themselves beset with beggars, thieves, and various state's attorneys
general, is welcome by one and all over here.
Also, the pricing is based somewhat on costs of marketing, which must be
recovered if Microsoft is to maintain any profit at all. The EU has been
particularly predatory in assessing huge fines because Microsoft included
their media player as part of Windows and we all know how horribly evil and
unfair that is. To pay these fines, EU citizens need to pony up a bit
higher price to even things out worldwide. Fair is fair, I believe.
> "B Gruff" <bbg...@yahoo.co.uk> wrote in message
> news:52p4eoF...@mid.individual.net...
>
>>On Monday 05 February 2007 16:28 amicus_curious wrote:
>>
>>
>>>It seems that the notion of value pricing, i.e. charging what something
>>>is
>>>worth rather than what it might cost to produce, is lost on the OSS
>>>people.
>>>
>>It seems to be lost on you too.
>>
>>Please feel free to explain to us why the price, based on GDP, is not
>>highest in the U.S. of A.?
>>
>
> There are multiple factors, of course. Contrary to popular images, the
> people of the United States of America are not altogether that prosperous.
> We have been asked to carry the world's burdens in terms of building up many
> backward nations such as Iraq and Afghanistan and so are taxed to the
> extreme. If you can get a foreign newspaper over there, you might see where
> our president has asked for 2.9 trillion dollars to meet our domestic and
> world obligations. That doesn't leave a lot of room for luxuries like
> Windows Vista Ultimate. What little price relief Microsoft can afford, they
> themselves beset with beggars, thieves, and various state's attorneys
> general, is welcome by one and all over here.
Funny that...considering that MS argued that it was the GDP/capita that
caused the price to be /higher/ in the country with the /lower/ one - or did
you miss that point? Perhaps it's MS who doesn't understand GDP, etc?
> Also, the pricing is based somewhat on costs of marketing, which must be
> recovered if Microsoft is to maintain any profit at all.
So that's why there's no Linux marketing whatsoever? (Seeing as Linux costs
£0.00 = $0.00 (exchanged at £1 = $10 ^_^).
> The EU has been
> particularly predatory in assessing huge fines because Microsoft included
> their media player as part of Windows
And here I was thinking that the fines were because MS failed to obey the EU
Laws and requirements.
> and we all know how horribly evil and
> unfair that is. To pay these fines, EU citizens need to pony up a bit
> higher price to even things out worldwide.
So that explains why a chinaman(?) has to stump up a /month's/ wages to pay
for Windwos? That'd mean I'd be paying in the region of £1000 ($2,000) for
Windwos; I don't see Americans paying a month's wage for Windwos...or /are/
Americans *really* that badly paid that they only earn $300 a month?
> Fair is fair, I believe.
Would be *IF* the price was only greater in the UK for Vista - I'm sure XP
was more expensive, 2K was, 98 was; however, I've noticed that IT stuff, not
just MS's, tends to cross the Pond at an exchange rate of £1=$1 (give or
take 1d).
>> Also, the pricing is based somewhat on costs of marketing, which must be
>> recovered if Microsoft is to maintain any profit at all.
>
> So that's why there's no Linux marketing whatsoever? (Seeing as Linux
> costs £0.00 = $0.00 (exchanged at £1 = $10 ^_^).
>
I think that there is no Linux marketing whatsoever because there is little
hope of even recovery let alone profit from an investment in Linux. The
only one that can profit from Linux is an OEM that can keep the money paid
for a package and no have to remit the license fees to Microsoft. The
opportunity is perilous, however, since there is no established demand for
Linux desktop computers. Why would an OEM take the risk for such a minor
gain?
>> The EU has been
>> particularly predatory in assessing huge fines because Microsoft included
>> their media player as part of Windows
>
> And here I was thinking that the fines were because MS failed to obey the
> EU Laws and requirements.
Well now you know. The various states that joined the DOJ in the antitrust
suit years ago were lusting after the Gates billions as well, but they never
were able to show that they deserved any of it. The EU is now trying and
the matter is going through the first level of courts, as I understand it.
The premise is rather flimsy in asserting that such ruin to competition
comes from packaging Media Player and having more facility in connecting
Windows clients to Windows servers via the publicly disclosed protocols.
You are anti-Microsoft, I am sure, so that you will not yield anything in
this opportunity to see Microsoft punished for their success, but don't
suppose that they will not get their money back some way.
>
>> and we all know how horribly evil
>> and unfair that is. To pay these fines, EU citizens need to pony up a
>> bit higher price to even things out worldwide.
>
> So that explains why a chinaman(?) has to stump up a /month's/ wages to
> pay for Windwos? That'd mean I'd be paying in the region of £1000
> ($2,000) for Windwos; I don't see Americans paying a month's wage for
> Windwos...or /are/ Americans *really* that badly paid that they only earn
> $300 a month?
>
If you bother to observe the facts, you will see that the chinaman(?) is
continually allowed to freely pirate Windows and even resell it on the
streets of Hong Kong and elsewhere in Asia. I don't think that is an
accident and is simply a recognition that there is very little money to be
made in selling software in Asia at this time.
>> Fair is fair, I believe.
>
> Would be *IF* the price was only greater in the UK for Vista - I'm sure XP
> was more expensive, 2K was, 98 was; however, I've noticed that IT stuff,
> not just MS's, tends to cross the Pond at an exchange rate of £1=$1 (give
> or take 1d).
>
In my occasional trips to Europe I have often observed that the prices for
most things that I can compare directly are several times higher there than
in the United States of America. A room in a modern hotel in Amsterdam, for
example, or a meal in a quality restaurant. A pair of denim slacks with an
American brand are similarly much higher there in spite of the fact that
they are made in China. Perhaps your currency is not as valuable as you are
being led to believe. How much is a pint of beer in a pub these days?
You don't have to buy a laptop with anything pre-installed. If you
bought one that said no operating system was installed, and they
charged for a copy of Windows and put it on there, then you should be
able to get some sort of refund from whoever sold you that laptop. If
you buy a laptop that says it comes with Windows, then it seems like
that's your problem.
While Bilge ][ is explaining that, maybe he can explain why it needs to
be higher or lower in various places when the overall total profit
margin is 86% on the product.
--
A Windows utility is a virus with seniority.
I would imagine that it is the gross domestic product divided by the
population count, but you may have a different definition. I also
understand that a Management Accountant is a sort of CPA. Are you a
Management Accountant? You sort of sound like you might be.
And if that is so, there is NO commercial reason whatsoever to use it in
a pricing policy, other than to try to justify something that is
unjustifiable, mainly because most people won't know what on earth GDP
is or how it's measured.
A Management Accountant is not a CPA, it is someone who guides
non-financial managers into making the correct business decisions based
on historical data and forward extrapolation of the same, with regard to
market tendencies, new product launches, etc etc. I'm actually also a
Systems Accountant - the link between the IT dept and the Accounts dept.....
And the Licence for Windwos says that if I don't agree with it I can return
the unused product(s) for a refund subject to the suppliers refund policies.
If the laptop is one I particularly want, but NOT to run Windwos and I
have to purchase it /with/ Windwos and the returns policy of the comapny is
that I can only return the whole laptop with Windwos and /not just/ Windwos,
then if I want to purchase that laptop, I *have been forced* to buy Windwos
- the laptop supplier *has made* me buy it (even thought I don't want it).
So if MS declares that no one is making me buy Windwos and the laptop
supplier is making me buy Windwos, the question I would want to know is why?
And more to the point, why is MS lying? Or don't they know what the
OEMs are doing? Which I can hardly believe, as it's most likely that it's
MS forcing them to sell Windwos with every laptop sold.
OK - so following on from that:-
AFAIK, I am at liberty to buy as much beer as I wish in the U.S., transport
it to the U.K. (paying transport costs), import it, paying any duty and
tax, and sell it, paying any sales tax.
AFAIK there would be no price difference at source (U.S.), and no objection
to me selling that U.S. beer in the U.K.
Question: Can I buy in the U.S, transport, import and sell Vista under the
same terms?
If not, why not?
Whyever would you want to do that? :-) Import something useful,
like Knoppix. Not only is that cheaper (since it's based in Germany),
but it might actually work.... :-)
--
#191, ewi...@earthlink.net
Linux. Because it's not the desktop that's
important, it's the ability to DO something
with it.
> Question: Can I buy in the U.S, transport, import and sell Vista under
> the
> same terms?
> If not, why not?
>
I really do not know what terms and conditions might apply universally. If
you are a distributor for Microsoft, you have contractually agreed to their
policies and any restriction would be due to some policy in effect at
Microsoft. They have to balance their channels to ensure that they do not
end up in competition with themselves and that is always a complicated
process, all the more so for a worldwide operation of the scale needed for
Windows. Are there any import restrictions in UK law? If not, in the
interests of international harmony I would be happy to buy a copy of Vista
for you at a local outlet and send it to you if you would forward the
payment and shipping costs in advance.
...
> I think you missed the point of the analogy. It was not to describe how
> things may be transported but rather to illustrate how prices are
> determined, which is by determining what things are worth in the eye of the
> buyer.
No, prices are determined by what things are able to sell for in the eye of
the seller.
> For whatever reason, it seems like the beer drinker in the UK values
> the experience roughly twice as much as one in the US and prices are set
> accordingly.
No, prices are largely set by the government taxing alcohol; even worse is
petrol (gas to you)...in the Uk, it is currently about 86p/l or roughly
£3.87 a gallon[1] ~= $5.88 a gallon[2] - is petrol really that much valued
by the UK customer, or does s/he moan about the ridiculously high price?
Further evidence of the tax problem[3] was highlighted when I last travelled
through mainland Europe. In the UK, petrol was about 85p/l, Diesel was
about 90p/l; on mainland europe, essence (petrol/gas) was about e1.20/l
(about same price) whereas benzol (diesel) was about e0.90/l (no wonder my
boss told me to fill up there - 400+l for a full tank soon adds up in costs).
[1] Inperial gallon based on pint = 20floz.
[2] American gallon based on pint = 16floz = 4/5 imperial gallon; also
exchange rate of £1 = $1.90. the US price for an imperial gallon ~= $7.35.
[3] Somewhere like 70-80% of the forecourt price of petrol is tax!
...
> I really do not know what terms and conditions might apply universally. If
> you are a distributor for Microsoft, you have contractually agreed to their
> policies and any restriction would be due to some policy in effect at
> Microsoft.
So they have artifically hiked the price to whatever the market will
tolerate and provide an incentive to copyright infringe.
>> For whatever reason, it seems like the beer drinker in the UK
>> values the experience roughly twice as much as one in the US and prices
>> are set accordingly.
>
> No, prices are largely set by the government taxing alcohol; even worse is
> petrol (gas to you)...in the Uk, it is currently about 86p/l or roughly
> £3.87 a gallon[1] ~= $5.88 a gallon[2] - is petrol really that much valued
> by the UK customer, or does s/he moan about the ridiculously high price?
>
> Further evidence of the tax problem[3] was highlighted when I last
> travelled through mainland Europe. In the UK, petrol was about 85p/l,
> Diesel was about 90p/l; on mainland europe, essence (petrol/gas) was about
> e1.20/l (about same price) whereas benzol (diesel) was about e0.90/l (no
> wonder my boss told me to fill up there - 400+l for a full tank soon adds
> up in costs).
>
> [1] Inperial gallon based on pint = 20floz.
> [2] American gallon based on pint = 16floz = 4/5 imperial gallon; also
> exchange rate of £1 = $1.90. the US price for an imperial gallon ~= $7.35.
> [3] Somewhere like 70-80% of the forecourt price of petrol is tax!
>
I would not argue that price strategies can be destroyed by government
intervention, but that itself is a form of pricing. The government must be
concerned that the citizens will not "buy" and will evict the ruling party
to obtain some relief from the burdens. Fuels are less voluntary than beer,
though. You may have to pay for fuel to get to your job or whatnot, but you
could skip the beer if it was not worth the price in your mind.
> ...
>
>> I really do not know what terms and conditions might apply universally.
>> If you are a distributor for Microsoft, you have contractually agreed to
>> their policies and any restriction would be due to some policy in effect
>> at Microsoft.
>
> So they have artifically hiked the price to whatever the market will
> tolerate and provide an incentive to copyright infringe.
>
They have set prices at a level that have resulted in substantial profits
while at the same time been acceptable to a vast majority of consumers. No
one likes to spend money, but that is not the issue. What is required is a
price that people will pay because they would still prefer to have the
product than to keep their money.
I've written a post in my blog which has only been published a few
days ago because I was waiting to a response from my countrie's
Microsoft branch, but it never came where I also expose this issue ->
http://www.digg.com/software/Microsoft_does_not_like_Europeans
Now Portuguese GDP is far lower than British or USA, so I don't know
what kind of study they have made but we here are really paying a lot
more (though taxes applied are 21%, this does not account for the huge
price difference between USA - Europe that Vista's several distros are
getting. This is even more outrageous when the GBP and the EUR are
higher than the USD!
We have all to take a stand to stop these stupid price policies that
always make Europeans pay more!