Adobe’s Misdirection

Could things get any worse for Adobe?  Short of lighting themselves on fire with petrol, they’ve had a shocking couple of weeks.  Now they proceed to release what looks to be awesome technology in the new Creative Suite 5, but decide that in Australia, it is perfectly ok to gouge us.  Did they think we wouldn’t notice the difference in price between the US and Australia?

To answer the question, Adobe have release a statement and it is posted on Delimiter at

The statement basically says that they set pricing in regions based on market research, local conditions and their distribution model.  As they didn’t bother to explain it much beyond that, let me have a crack: Adobe are saying, “Adobe can’t be bothered setting up a business of substance in Australia and creating local employment beyond crappy marketing jobs.   However, as fate would have it your economy doesn’t suck, so our market researchers tell us you’ll pay more.”  I think that sums it up nicely.

The statement then goes on to tell us what exceptional value they are delivering and how ACTUALLY, the price isn’t more expensive, its actually CHEAPER!  Here’s how:

Yes, if you buy one overpriced Suite and move to the Master Collection, that uplift is 20% cheaper than the current smack they deliver you for uplifting to CS4;

  • The price of Design Standard is cheaper than it was in CS4;
  • Upgrade costs are 5 percent lower; and most importantly,
  • They continue to “innovate”!

    The first three points compare how much cheaper it is than their last over priced product – I wonder what would happen if you took away the fact that the Aussie Dollar is approaching parity with the US dollar, I bet those numbers wouldn’t stack up.  Nonetheless, those three points are just red herrings – the issue isn’t the price compared to CS4, its the difference between the EXACT SAME US product and the the price here in Australia.

    The last point made me laugh – they continue to innovate without increasing the price.  First of all, only an idiot would fall for this misdirection – the US price of the Master Collection is US$2599.00 and the Australian price is AUD$4344.00 (or US$4060), the reality is about $1500 dollars difference for the exact same product.  Secondly, is it not a given that if you release a WHOLE NEW VERSION and expect people to pay for upgrades that you actually give them something new?  Or, if you expect to attract new customers, you have to deliver a better product.  HOWEVER, once again, the argument has nothing to do with the VALUE of the product, the argument is, how can you justify selling it in Australia for $1500 more than the US.

    Let me put it this way, I could buy a Jetstar round trip economy class ticket to Hawaii for under $1000 with taxes, stay at a $300/night hotel for a night, buy Master Collection and I’d still come out a couple hundred bucks ahead!  

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