Upload & Sell: Off
| p.1 #16 · International Software Pricing |
As I mentioned before and digitalbean hit on, I think it may be as simple as basic business practices: supply and demand.
What is the cost for Adobe to setup business in a country? I honestly don't know, but my company deals with several states here in the US - for each one we have to register with the state. That means setting up legal council in each state to have the papers drawn 'locally' for us to be filed with the state for our collection of taxes on goods sold/delivered. On top of that, each month, we have to file said taxes - from additional internet orders or even if we have no sales, we have to file it.
So there is a serious financial commitment to do business in a 'foreign' state - or country. Money to pay for legal, money for distribution, money to pay somebody at home office to keep track of the money flowing through and to that state/country.
Now, offset that with the potential revenue that can be expected from said state/country.
Lets put it all in perspective.
To sell my goods in my home state/country, where I know sales will be strong - I have a $50,000 startup cost to get all my ducks in a row. Cheaper in my home state/country, because the logistics of being local work in my favor. Ongoing expenses are say $10,000 per year.
I also know that I can sell 10,000 widgets per year, so I can price them at $3 each and know that within two years I'm turning a profit.
If it's going to cost me say $60,000 for initial startup costs in another country (because it's not local and there are just more expenses), with $12,000 costs annually to deal with the tariffs/taxes/paperwork/logistics/filing/etc..., and I only expect to sell 1000 widgets per year, then I have to price them at $36 to expect to make a profit within 2 years.
That's 12x the going rate - just to break even in two years!
Those are extreme prices and guess scenarios, but I hope you see my simply point of supply and demand. If it cost $X to supply an area then the pricing will determined by what the demand is.
Now I understand that digital download costs the same whether its in Adobe's backyard or on the other side of the planet, but for the most part, business models were not setup years ago with that process in place. They are still trying to recoup their initial investment, even though the digital age has superceded the paperwork ancestry that built most companies and what they are used to.
Again just thoughts...not policy or supported practice