There is no excuse why downloadable content should cost more -- economies of scale, shipping costs, and differences in taxes and exchange rates are all irrelevant. Even in the case of physical goods, the disparity is often drastically more than can be accounted for by the above reasons. This comment sums it up quite well: http://news.cnet.com/8618-1001_3-57568633.html?assetTypeId=1... There is a parliamentary committ…
It is cheaper to fly to US than buy Adobe software in Australia
131–140 of 173 posts
Re: It is cheaper to fly to US than buy Adobe software in Australia
#132There is no excuse why downloadable content should cost more -- economies of scale, shipping costs, and differences in taxes and exchange rates are all irrelevant. Even in the case of physical goods, the disparity is often drastically more than can be accounted for by the above reasons. This comment sums it up quite well: http://news.cnet.com/8618-1001_3-57568633.html?assetTypeId=1... There is a parliamentary committ…
Re: It is cheaper to fly to US than buy Adobe software in Australia
#133As an Australian (now an NYC resident), I am no stranger to the price gouging that Australians have had to suffer although I must say that how it is now is much, much better than it was 10-20 years ago. First, it's worth noting that US prices don't include sales tax. Australian prices include a 10% GST. Second, international companies will end up doing their accounting in one currency. For tech companies unsurprising…
if A$1 = ~US$1.04, the price should be lower in Australia, not higher
999 / 1.04 * 1.10 seems about right to me.
Re: It is cheaper to fly to US than buy Adobe software in Australia
#134If you buy the US version of Adobe software then using it in another region is not allowed in their EULA. So it's almost the same as torrenting it except you paid for it. After a quick look I found these in their EULA: "Adobe grants Customer a non-exclusive and limited license to install and use the Software (a) in the territory or region where Customer obtains the Software from Adobe or Adobe’s authorized reseller o…
How absolutely lovely.
Re: It is cheaper to fly to US than buy Adobe software in Australia
#135Earlier quoted context omitted.
> The problem is the government/customs knows that and thus catches and taxes a lot of people who try to bring over $500USD worth of products. Does this mean the difference in the price of the Macbook is entirely taxes? Or, after paying an import duty at the airport, would the overall cost still be lower than buying the hardware domestically?
My friends in São Paulo just did that with an iMac - bought it in Arizona during their Christmas trip to the US, declared it at Guarulhos airport, paid the import imposts and still came in with a huge discount to the local retail price.
Re: It is cheaper to fly to US than buy Adobe software in Australia
#136I'm surprised no one mentioned the exorbitant prices of electronics in Brazil compared to the US. For example, the top of the line Macbook 15" retina in the Brazilian Apple store costs R$12599 which is around $6395USD, while the same in the US is $2799. A Brazil/Miami return flight is also around $1000 depending on the time of year. So theoretically it's cheaper for Brazilians to go to Miami, have a nice weeklong vac…
> The problem is the government/customs knows that and thus catches and taxes a lot of people who try to bring over $500USD worth of products. Does this mean the difference in the price of the Macbook is entirely taxes? Or, after paying an import duty at the airport, would the overall cost still be lower than buying the hardware domestically?
Re: It is cheaper to fly to US than buy Adobe software in Australia
#137Looking for a Photoshop alternative ? Please take a look into Gimp, I'm using it for a long time now. If the money you pay for licensing Photoshop was put in new creative ideas in Gimp, I'm pretty sure it would look as awesome, as Photoshop! Take a look please :)
Re: It is cheaper to fly to US than buy Adobe software in Australia
#138There is no excuse why downloadable content should cost more -- economies of scale, shipping costs, and differences in taxes and exchange rates are all irrelevant. Even in the case of physical goods, the disparity is often drastically more than can be accounted for by the above reasons. This comment sums it up quite well: http://news.cnet.com/8618-1001_3-57568633.html?assetTypeId=1... There is a parliamentary committ…
There is no excuse why a movie ticket for a 7:00 PM showing should cost more than a movie ticket for the first showing of the day. If anything it should cost less because there are more people in attendance making the cost per attendee lower. Outrage! Let's get the United Nations, Interpol, and the Parliament to intervene!
Re: It is cheaper to fly to US than buy Adobe software in Australia
#139The same thing happens in the UK. Napster for example charges more than 50% more for a download service in the UK, than in the USA. Completely ridiculous for an internet based download service. I was going to subscribe until I learned this. Can't support business's gouging their clients.
Re: It is cheaper to fly to US than buy Adobe software in Australia
#140As a consumer obviously we want everything to be cheaper, not just compared to elsewhere, but in general. Who wouldn't like Apple products to be cheaper, or cheaper DSL, cheaper cable etc.
As a company you're in it to make money, period. Pricing is one of the most complicated and imprecise things a company has to deal with. Once you set a price you basically anchor yourself to it in case you later find out that that price was low and you could have charged higher. If you set the price too high then there is always the option to go lower, or offer discounts. You also need to take into account different categories of customers, based on region in this case, and try to price discriminate such that you are able to charge the price that would bring maximum profit (not revenue) and where people cannot go across these categories to buy another comparable product. For example, senior, student, children discounts for movie tickets. Then there are com parables you need to take into account, like Coke and Pepsi are substitutes to an extent, Photoshop and Gimp are not. IntelliJ and Eclipse are, so IntelliJ has to make sure it is offering value for which it can charge.
Microsoft also does regional pricing, and its products are dirt cheap in China and other economies where there is rampant piracy, since there it is effectively competing with its own product being offered for free.
Companies always try to maximize profits and if they can get higher profits and are not anchored to a lower price, they will do so. There is nothing wrong with it, its just business, which pays our salaries and also for entrepreneurs keeps our investors happy.