Critical Focus: Software pricing - it's an international rip-off

DPNow · #1 22-09-07

This week, DPNow's editor is fed up with being ripped-off. The term 'Rip-off Britain' has never been more salient from his point of view. But to our many visitors from outside of the UK, don't feel this editorial is irrelevant - the inconsistency of international pricing extends to you too.

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StuartR · #2 23-09-07

This thread could run for a while Ian!

Two stories that get / got up my nose on this subject:

1) Adobe stating that the price of CS3 is higher in Europe because of all the multi-lingual manuals & support. Why can't they just sell the US English version in the UK? At a direct $ > £ conversion of course. I'd even put up with the bad spelling in their English manuals

2) Admittedly this was a while back but the memory lingers on....A senior director of a car dealer / importer (I think it was Mercedes) who, when cornered with nowhere to go on Radio 4's today program in a debate over UK car prices : "Aaahh but the British public expect to pay more" it was put across as if it was a some stiff-upper-lip patriotic duty! IIRC there was stunned silence in the studio!

Stephen · #3 23-09-07

I have actually downloaded software off the net and used the US checkout rather than the UK one cos it was significantly cheaper. Adobe don't allow you to do this, it seems that you always get directed to the UK checkout to pay

I also pay for web space and domain names etc all from a US site with my CC in $US it makes no difference so far as the CC company is concerned.

#4 23-09-07

What is it with us Brits. We never seem to want to bargain and just except the asking price. While we continue to do this we will always have to pay more. A recent example of this was when I was asked to go to PC World with a friend that wanted a new PC. I had done my homework on a selection of PC's on the net. When we arrived at the shop the prices were considerably more. I refused to let the salesman charge the full price and eventually got to speak to the manager. Pointing out the price differences to him, which I had printed out from the web, he agreed to reduce the shop price to those I was quoting. A total saving of £88 on a purchase valued at £421. My friend said they were embarrassed at the way I challenged the manager, but was very happy to save so much money. He said had he been on his own he would have paid the full price. My motto, if you don't ask you don't get.

David · #5 26-09-07

Not really relevant to your well made point, lumix, but a neat trick with PC World is to look at their own website first. Many of their products are cheaper on the website than in the store. You can order from the website and then collect & pay (the lower price) at the store.

Of course you lose the buzz of haggling with the salespeople if you do it that way!

D.

David · #6 26-09-07

Higher costs of working in the UK? I wonder. A number of French firms are basing some of their operations in the UK because, although salaries are higher, employment taxes (paid by the business) are lower. Relative to the UK, it costs an absolute fortune to employ someone in France.

D.

Ian · #7 26-09-07

Quote:

Originally Posted by David

Higher costs of working in the UK? I wonder. A number of French firms are basing some of their operations in the UK because, although salaries are higher, employment taxes (paid by the business) are lower. Relative to the UK, it costs an absolute fortune to employ someone in France.

D.

I think it's not an 'operational' cost, but the fact that the UK software market is not as competitive - there are too few retailers that take up the lion's share of the market, plus we Brits aren't often too bothered about finding the best price or service.

Adobe's new release of Photoshop Elements 6 and Premiere Elements 4 shows that a big company can be reasonable with its UK and European pricing. If you take UK VAT off, the UK price is only 20% more (still not great, but better than most) and the Euro pricing compared with the UK is practically in line with the exchange rate.

Ian

#8 26-09-07

It´s not that complicated. British wages are much higher than the continental ones. If you earn more, you pay more.

Ian · #9 26-09-07

Quote:

Originally Posted by Unregistered

It´s not that complicated. British wages are much higher than the continental ones. If you earn more, you pay more.

David - who lives in France - contradicts your assertion. I'm not at all convinced workers in the UK earn more than their continental counterparts, especially not in the Nordic countries and Northern Europe. And if some companies can maintains sensible prices, why can't others?

Ian

StuartR · #10 26-09-07

Quote:

Originally Posted by Unregistered

It´s not that complicated. British wages are much higher than the continental ones. If you earn more, you pay more.

I don't buy that argument at all and I've worked on the continent and employed staff in Holland, Germany & France. You can't just look at wages you have to look at employments costs, taxation and the cost of living.

Also, despite popular belief, the British worker (my experience, my industry) works just as hard, if not harder, works longer hours and has less holiday than his continental counterpart. So perhaps he / she should earn more! But that doesn't mean they should pay more!

paul.r.w · #11 28-09-07

All software bought online should be the same price wherever in the world plus what ever local taxes (VAT etc) apply. Anything else is a rip-off. And they wonder why there is so much piracey!

#12 10-10-07

Quote:

Originally Posted by paul.r.w

All software bought online should be the same price wherever in the world plus what ever local taxes (VAT etc) apply. Anything else is a rip-off. And they wonder why there is so much piracey!

totally agree

!!

JSR · #13 10-10-07

Sadly, the answer is very simple. I brought up this subject on a different forum a while back - it was in regard to hardware. On that occasion it was to ask why the UK was expected to pay $1000 *more* for the same printer from Epson that they were selling the US - it was very frustrating when everyone (US people) was saying how cheap the printer was, but it wasn't for anyone else.

Anyway, the answer has nothing to do with exchange rates, taxes, wages, cost of living, cost of business, or any other "cost" associated with the product. It all comes down to the manufacturer (and retailer) selling at a price they can "get away with".

If they make enough profit on their hardware/software in their core market (the US) then they can charge what the heck they like to anyone else because they don't care if you buy or not - they've already made their money back and then some. They charge these prices "because they can" and we have no choice but to put up with their locational discrimination policy. Isn't it odd how society has become enlightened enough to know that it's unacceptable to discriminate over gender, race, orientation, size, ability, etc - but it's perfectly acceptable to discriminate based on where you happen to live. All the equality money can buy.

And they wonder why pirates do such a booming business. I just wish I didn't have a conscience, then maybe I'd be able to use the same software that our US brothers and sisters can *legally* afford to use.