# Adobe CC 25% price hike in Australia. Who is next?



## pwp (May 9, 2017)

Don't you love Adobe? They have announced a whopping 25% price hike for CC in Australia. You can buy 12 months worth before June for the "old" pricing. Makes you think doesn't it? Australia now...your country next?

https://www.lifehacker.com.au/2017/05/reminder-renew-your-adobe-cc-subscription-before-june-5-to-avoid-price-hikes/

-pw


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## privatebydesign (May 9, 2017)

Hmm, strange, nothing else has gone up in price in the last three years who do they think they are? :


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## Mt Spokane Photography (May 9, 2017)

Adobe is a US company, and likely tries to price things according to the exchange rates, so the USD they get for a product remains about the same. 

Here is the deal: The Australian Dollar was worth $ 1.05 US in 2014, but its now worth $0.74 US. Thats a bit more than a 25% loss.

So, as usual in matters like this, Australians have been getting better and better deals in recent years, and now, a price adjustment is raising cost in AUD to compensate.

The Canadian dollar has suffered only slightly less against the US dollar, so it may be next.

A strong US dollar gives those with US dollars more purchasing power when buying imports. The converse is that exports get more expensive. Sales are lost due to higher prices for exports, so companies try to hold the price line, but eventually, an adjustment is needed. 

Currency fluctuations are not a good thing, they always hurt someone. Stability is better, but it has never happened, and the pendulum will swing the other way at some point.

Some companies just sell their product in the currency of their country, and let the banks charge the conversion rate. Others try to stabilize prices as best they can, but eventually, a correction is going to be made.

Canon also hedges prices, but when the Yen gets stronger, prices are also going up.


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## Valvebounce (May 9, 2017)

Hi Mt Spokane. 
Thank you for a well reasoned explanation to what could easily have become another I hate cc thread. 

Cheers, Graham. 



Mt Spokane Photography said:


> Adobe is a US company, and likely tries to price things according to the exchange rates, so the USD they get for a product remains about the same.
> 
> Here is the deal: The Australian Dollar was worth $ 1.05 US in 2014, but its now worth $0.74 US. Thats a bit more than a 25% loss.
> 
> ...


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## Otara (May 9, 2017)

Yep I live in Oz, got the email, did the maths, nothing to worry about.

Is annoying that they dont let us buy the deals on special in the US though.

Otara


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## jd7 (May 9, 2017)

Otara said:


> Yep I live in Oz, got the email, did the maths, nothing to worry about.
> 
> Is annoying that they dont let us buy the deals on special in the US though.
> 
> Otara



+1

My first reaction to Adobe's email was to be unimpressed and think I should start looking for alternatives - I haven't been following the A$/US$ exchange rate and I guess I just wasn't expecting a price rise at this point. However, once you check the exchange rate over time, it's hard to be too critical.


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## Hillsilly (May 9, 2017)

Mt Spokane Photography said:


> So, as usual in matters like this, Australians have been getting better and better deals in recent years, and now, a price adjustment is raising cost in AUD to compensate.


Would make sense except that even pre-creative cloud, Adobe products cost more than twice as much in Australia then they did in the USA when taking exchange rates into account. It used to be cheaper to fly to LA to buy photoshop than buying it locally. 

Australia has always been Adobe's cash cow. I doubt any price hike will be reversed in line with any future exchange rate movements.


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## Otara (May 9, 2017)

Bit of a theoretical fear given our likely exchange rate movements in the next few years.


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## Hillsilly (May 9, 2017)

Yeah, have just finished listening to Mr Morrison....The sooner they bring back Abbott, the better.

Anyways, I just feel sorry for people on a student subscription, who are facing 73% price hikes.


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## Mt Spokane Photography (May 9, 2017)

Hillsilly said:


> Mt Spokane Photography said:
> 
> 
> > So, as usual in matters like this, Australians have been getting better and better deals in recent years, and now, a price adjustment is raising cost in AUD to compensate.
> ...



Does it seem that many products in Australia are overpriced compared to US prices? 

I did a quick look online at some typical prices in Sidney (Don't know if its a expensive city), prices in AUD ran pretty high for virtually everything when compared to what I'm used to. We are not in a low cost area.

Are wages higher? I can remember in the 1970's when many people I knew moved to Australia where wages were higher, jobs were plentiful, and cost of living was less.

People were friendly, it was a nice place to live.


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## Hillsilly (May 10, 2017)

On average, wages are similar. But when looking at purchasing parity, we fall noticeably behind the USA, because we do tend to pay more for things. It's known as "Australia Tax". A few years ago, some of the leading software companies (including Adobe) were questioned by a Senate committee and the general response was Australians are used to paying more so they charge what they can get away with. Kind of hard to argue against that.

I can understand paying an extra $2000 for Photoshop in the old days. Hey, Adobe had to post a box with a CD in it to a local retailer and the retailer had to put that box on their shelf. You got good value from your $4,500 purchase, compared to people in the USA, who's box didn't get to experience the joys of international air travel. 

Now that everyone is downloading from the same servers, I think it is good that Adobe has generally uniform pricing. And it is appropriate for them to take currency fluctuations into account. And I think CC LR+PS is excellent value. But old school wariness of Adobe pricing policies are hard to shake.


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## Khristo (May 10, 2017)

Hillsilly said:


> Yeah, have just finished listening to Mr Morrison....The sooner they bring back Abbott, the better.



I'll volunteer to pay $30 per month if we don't have to have that embarrassment Abbott back!! :-\
(apologies to international members for local squabble... )


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## Hillsilly (May 10, 2017)

A small Adobe price increase will pale in comparison to the Turnbull/Morrison's photographer tax grab, with the GST changes commencing on 1 July. This is assuming larger foreign retailers continue to sell to Australians....which seems to be becoming increasingly doubtful. I'd like to think that companies like B&H, Freestyle, Adorama, ebay, Amazon etc value sales to Australia significant enough to comply with the new GST rules. But I can't blame them if they don't. And if they do comply, everything you buy will cost at least 10% more.

And if they choose not to sell to Australians, then we'll be forced to buy from Australian retailers. Ouch!!!


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## Otara (May 10, 2017)

I have no problem with paying GST, it really is pretty unfair to local businesses, some of them try pretty hard to compete now. 

Its the processing fee that will be the potential killer and where it will veer into protectionism. Particularly frustrating when you're buying things you cant even get in Oz.

Otara


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## jeffa4444 (May 10, 2017)

On the whole American consumers get the best deals in the Western world. Hong Kong is fairly cheap as is China. 
In the UK were used to US consumer companies gouging us, Apple do it every day as do Microsoft. The £ has fallen by around 18% but Apple put prices up by 25% when they launched the new MacBook Pro across the board, one adaptor went from £ 49 to £ 79 it was already expensive at £ 49. 

Canon prices also increased by more than the fall in the £ for example the EF 70-200mm f2.8L IS USM II went from £ 1,499 to £ 1,999 a 25% increase. Its manufacturers taking advantage. Where I differ from Mt Spokane view is they are fast at raising prices when currencies fall but not so fast bringing them down when they appreciate.


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