Re: Thank you very much Adobe
Re: Thank you very much Adobe
- Subject: Re: Thank you very much Adobe
- From: "Roberto Michelena" <email@hidden>
- Date: Thu, 29 Mar 2007 09:19:47 -0500
Here is Adobe's official explanation when they were asked why they
were ripping us off for CS2:
<snip>
If changes were to be made to
reflect the currency fluctuation, the customer would be harmed when
the GBP-dollar relationship swings the other way. It would also affect
the European distribution chain as inventoried products change in
value. In this environment, it is difficult for Adobe to continuously
tune pricing.
Well, this is the most ridiculous reasoning I've seen. If you
translate this from Marketese to English, basically they say "in order
for you not to have a nasty surprise in the unlikely case the Pound
halves it's value, we'll charge you double now". Haha. Thanks but I'd
rather take the risk than the insurance.
The inventory argument is even sillier, because it's backwards. If the
Pound halves it's value and suddenly a product goes from 200 Sterling
to 400 (in order to maintain it's Dollars price), I'm sure the dealers
won't feel sad from having inventory at half the new cost.
Now also consider the fact that Adobe employs over 500 people in
Western Europe (almost as much as in the states?), 350 of which are
spread between England, Scotland and Ireland. I seriously doubt that
if the Pound were to halve it's value, Adobe would double their
salaries :)
To make things more extreme, software does not have a significant
per-unit production cost. It's probably about $5 at most. So the
economics of the business is "how much do I want to charge" or "how
much would the market bear" multiplied by "how many will I sell" vs
development cost (which is not per unit). Attending to that, many
companies (including Microsoft) in some regions keep prices constant
in local currency even when such currency loses value temporarily, and
adjust only in response to long-term changes. It's not as if Adobe
would have to tune the price every month.
In short, even not being there nor being a Brit, I feel sorry for
these chaps. They're indeed being ripped off grandly.
-- Roberto Michelena
Infinitek
Lima, Peru
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