For a company that is so good technically and creatively, I am dissapointed by Adobe’s pricing policy to customers in the UK. I don’t necessarily expect the UK price to be set directly relative to the US price, but the UK mark-up seems to me to be excessive. I think the following facts speak for them selves (Flex Builder 2 with Charting)…
- Before tax, UK price is US price +29%
- US online store price $749 before tax
- Current $:£ = 1.9744 translates this price to equivalent of £379.36
- UK online store price £489 before VAT
- Therefore a pre-tax Markup of £109.64 or 29%.
- Equivalent US Price would be $965.48
The price of software in EMEA (Europe, middle East and Africa) reflects both the additional expense to develop and test Adobe’s applications for local markets and operating systems, as well as for the delivery of complimentary Warranty support.
On top of the base price, EU customers have to pay VAT. Most businesses can claim this back, but smaller companies and individuals cannot. The VAT rate in the UK is 17.5%, and there is this little gem for UK customers of the UK online store…
The store indicates VAT inclusive prices for the shipped boxed product at £574.58, and the download actually more expensive at £591.69.
Since our server is based in the Republic of Ireland where VAT is charged at 21% our downloads are more expensive than boxed goods which are shipped locally from the UK
Back to the main issue of pricing outside the US, of-course I am not the only one to notice this, and Adobe are not the only company to operate this way as the articles published here describe…