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Weird pricing of Dropbox Pro

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Re: Weird pricing of Dropbox Pro

#111
post #31

Even for cloud-based services like dropbox, the cost of doing business in all countries is not the same. There are different laws/regulations to deal with, costs for having foreign-language support people, costs for internationalizing parts of the UI/etc. Personally, I think it's kind of odd to expect that something will cost the exact same amount anywhere in the world. It might be that the added cost for dropbox to…

Products are not priced by cost. They are priced at the highest point the market will tolerate. Moreover, a European employee is generally way cheaper than an American one, the corporate tax is often cheaper, if they were really driven by costs, they would simply have relocated (at least outside of Silicon Valley). The simple fact of operating from California means they don't care about operating costs.

> Products are not priced by cost. They are priced at the highest point the market will tolerate.

This is a very simplistic view: product pricing also takes into account things like psychological thresholds (e.g. why it's 9.99/month rather than 10) and the likelihood of a competitor entering the space if your profit margins are too high. Amazon is famous for keeping low margins because they're willing to trade the short-term profits in exchange for making it harder for someone else to enter the space which would hurt their profits long term.

> The simple fact of operating from California means they don't care about operating costs.

Again, simplistic analysis: a business like Dropbox doesn't need to scale their employment at the same rate as they add customers so individual costs matter less than, say, a fast-food restaurant because each employee's work benefits as many customers as you can convince to signup. If you're making a profit on someone's labor their salary isn't as significant as, say, the opportunity-cost of not being able to hire someone at all or hiring the wrong person because most of the top people have been lured elsewhere. Being in business means weighing all of those factors not just looking at a single number and trying to lower it.

Re: Weird pricing of Dropbox Pro

#112

Earlier quoted context omitted.

India as 37 languages and a mess of a country, I guess they are selling their product for 150% of the American price there?

But many products are sold in India in English only. This is manifestly not the case in Europe.

I'm perfectly ok to have an English only product with a 30% discount, but I can't find the option. (That said, looking at the streets in Seattle, I'm not trading my 20% VAT for potholes, crumbling sidewalks and aerial electric wires in a storm prone region, thanks)

Re: Weird pricing of Dropbox Pro

#113
post #21

Earlier quoted context omitted.

> the relationship between the dollar and euro have changed The Euro has never gone below $1.17, and has averaged at around $1.32 since Dropbox launched in 2008. > it accounts for VAT Dropbox don't pay VAT in the EU. https://www.dropbox.com/help/971

The whole area of VAT in the EU, for companies like Dropbox, changes on January 1, 2015. Dropbox will not be able to state that they don't pay VAT in the EU after this date as the rules will have changed. They will have to start paying VAT based on where their customer is located in the EU, e.g. German Dropbox customers will have to pay German VAT (19%). Hungarian Dropbox customers, meanwhile, will have to pay Hungar…

How will that work for the companies? Will each company have to register and remit payment to every country in the EU that they have customers for?

Re: Weird pricing of Dropbox Pro

#114
post #111

Earlier quoted context omitted.

Products are not priced by cost. They are priced at the highest point the market will tolerate. Moreover, a European employee is generally way cheaper than an American one, the corporate tax is often cheaper, if they were really driven by costs, they would simply have relocated (at least outside of Silicon Valley). The simple fact of operating from California means they don't care about operating costs.

> Products are not priced by cost. They are priced at the highest point the market will tolerate. This is a very simplistic view: product pricing also takes into account things like psychological thresholds (e.g. why it's 9.99/month rather than 10) and the likelihood of a competitor entering the space if your profit margins are too high. Amazon is famous for keeping low margins because they're willing to trade the sh…

Adding 30% to the price and selling the thing to 27 countries all having a different tax policy in the name of "languages" (wait, I thought salaries were not at issue) or "taxes" (wait, vat is different in every country, and nowhere it is 30%), do you think it's worth anything more than simplistic analysis? Do you think anything more than simplistic thinking leads to changing the dollar sign to the euro sign?

Re: Weird pricing of Dropbox Pro

#115

I was going to sign up for this on Friday, but it makes you buy a minimum of 5 licenses, so the lowest monthly payment is $75. I thought that was pretty lame so I started looking for something else. I tried ownCloud but it was not very happy with my PHP configuration so I quit that and ended up using Synology's Cloud Station and port-forwarding it. Costs $0 extra to me since I already have a Synology NAS, local stora…

This.

Nothing will replace my Synology and the amount of services it gives me.

I already have two that backup each other. Best purchase of the year :)

Re: Weird pricing of Dropbox Pro

#117
post #111

Earlier quoted context omitted.

> Products are not priced by cost. They are priced at the highest point the market will tolerate. This is a very simplistic view: product pricing also takes into account things like psychological thresholds (e.g. why it's 9.99/month rather than 10) and the likelihood of a competitor entering the space if your profit margins are too high. Amazon is famous for keeping low margins because they're willing to trade the sh…

Adding 30% to the price and selling the thing to 27 countries all having a different tax policy in the name of "languages" (wait, I thought salaries were not at issue) or "taxes" (wait, vat is different in every country, and nowhere it is 30%), do you think it's worth anything more than simplistic analysis? Do you think anything more than simplistic thinking leads to changing the dollar sign to the euro sign?

None of those are related to the statements which I was replying to.

Re: Weird pricing of Dropbox Pro

#118
post #38

If you are in Europe I recommend hubiC instead of Dropbox. They are much cheaper and have servers in Europe (France - they are child company of OVH). Dropbox only has servers in America [1], so its slower. - 25GB free - 100GB 1€/m - 10TB 10€/m Yes you read that right, its TEN TIMES the space of Dropbox Pro, for the same price. Im not affiliated or anything, just a satisfied customer. [1] - https://www.dropbox.com/hel…

>Yes you read that right, its TEN TIMES the space of Dropbox Pro, for the same price.

Yeah, but what I want from a cloud store is convenience and long term prospects.

1) Do they have deep integration with iOS/Android apps the way Dropbox has?

2) Will they be around in 5 years?

Re: Weird pricing of Dropbox Pro

#119
post #54

Yeah I hate it when I have to pay more for a service as a European. It might seem silly but that's the reason I cancelled my Spotify account, I didn't want to pay a 'European' premium. I hate it when they check from which country your creditcard number is - Netflix is nice that they allow you to register in a different country with a VPN & don't check the credit card country.

Don't move to Australia then. Software prices are routinely jacked up for us. At least with conversion to the euro, there's a large amount of laziness in it. With Australian software, we're often paying 50% more to double the price. At one stage it was cheaper to buy Photoshop by flying across the Pacific ocean, buying a copy in the US, and flying back to Australia.

Every time I see this I feel compelled to point out that Europe gets it worse than you, despite your complaints.

Say 100 AUD for a game. That's roughly 70 euro (which is the cost of a new PS4 game in Ireland). The median household income in Australia is 66k (AUD) or 47000 euro. The only source I can find for a median income in ireland states it at around 27000 euro. The purchasing power of an Australian in that case is far higher than an Irish person for instance.

Re: Weird pricing of Dropbox Pro

#120
post #106

Earlier quoted context omitted.

Also, they don't hand your data over to the US government.

That's too pat a response: - You don't know that Dropbox does. - You don't know that hubiC doesn't turn data over to their government or whether it's shared with allies. - You don't know whether either of them have bugs which can be exploited by a MITM – or will in a coming update… Government spying requires political changes to establish a culture of oversight and accountability. You're fooling yourself if you think…

>You don't know that Dropbox does

Yeah, so we can just make an educated guess. Plus, Condo.

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