Sortware prices to be scaled to country's currency??

[Guest versionseven]

Does anyone think that software prices should be scaled to local prices?

 

I'm from Malaysia, our currency is about RM$3.8 to US$1. Meaning one copy of eg. Autodesk Viz4 is about RM$7500-8000 compared to USD$1800(I think).

Our rates per hour is similar to that in USD, here it's RM$50-100/hour to US$50-100/hour(I think). Average degree gratuate earns RM$24,000/annum.

 

That means if I charge RM$1500 per image, I would need to do minimum 5 images to buy Viz. Whereas is US, you could probably pay for it with one project. If you calcuate the returns it is ridiculous. Would you buy Viz if it cost USD10,000? Imagine if you run an office which needs with 5 people and 5 copies of Viz.

 

I understand that R+D cost in developing the software is high but I think that local distributors should absorb some of this cost especially where the currency is not favorable. This could curb or at least minimise the use of pirated software.

 

Anyone have any thoughts on this.

 

Version Seven

...trying for the seventh time...

[Jeff Mottle]

Yes I've often wondered that myself. Personally I think software should be priced based upon economic situation of that country. Per unit in relation to salary and fees. It's a bit elitist to assume that someone in a third world country should pay a years worth of salary for example to buy software.

[Guest versionseven]

I don't think the software company will be hit that bad. The bulk of their cost would be covered in their country of origin, any additional sale out side of their country of origin is profit.

 

Think about it, here a pirated copy of Viz cost US$1.50, that is 1000X the cost of a legit copy and the returns on the usage is not substanciated.

 

I think the software company would make a better profit if they make the softwares more accesible to people living in 3rd world countries. More people will buy legit copies, thus incresing profits, and if they are very affordable then even phasing out piracy(wishful thinking).

 

Version Seven

[jucaro]

Imagine the situation here in the Philippines with regards to software acquisition where inflation rates are very high. Php 52.00 per US$1.00!

 

Rendering rates here are average US$100.00-200.00 per image. Rates of most freelance renderers doing sideline jobs for local clients are on average Php 1,500.00-2,000.00 (about US$28-38) per image.

 

Admittedly, software piracy here is quite rampant wherein the only chance you get to use legit software is if you are working for a large firm.

 

Most local freelancers more than likely use pirated copies. Some companies even use pirated copies or just use 1 legit license and without their knowing, their legit copies are cracked by some employees. It's a shame really, but with the current economic situation here, bringing food to the table is more important than buying legit software licenses.

 

And in going back to the real topic; scaling software prices to a country's currency IMO would bring about many positive things to the country in question and a very big headache to the software company.

 

Foreign investors would bring their businesses to the country because of cheap software prices. Again, it might be good for the country in question but bad for the software company. This would cause a domino effect that would be too long to write and too boring to read.

[jucaro]

As much as I would like to agree on that, and as much as wishful thinking goes about phasing out software piracy, Software Companies adapting their prices to less fortunate countries remain a wishfull thinking.

 

IMO, I think software companies rather spend money on developing clever ways to secure their software from crackers and pirates rather than adjusting the software price to developing countries.

 

And as long as this is the case, the rate of software piracy will always be as high as the cost for individuals to acquire legit software.

[bigcahunak]

Well... you guys are talking on two different things: Piracy and localizing prices.

I dont think any software house would adjust prices they way you talk about. As much as it sounds nice and all, its very unrealistic. The price is being set at the place of manufacturing. Does Mercedes sell cheaper in 3rd world countries? so why software should?

Piracy is a whole other issue, and believe me - those who use pirated MAX, wouldn't buy it even if it was only $100.

Just my thinking.

[DelfoZ]

where I can get a ilegal copy of mercedez benz?

[Guest versionseven]

Mercedes is a physical product, whereas software is intellectual property. They will not lose actual money selling it cheaper just lose profit. You cant sell a Merc under its cost price, but software... a couple of CD's and some books???

 

Basically they are just collecting royalty. Yes, I understand R+D cost money, but think of it as a service, it has to be scaled to the local economy. McDonald's does it, I cant see why software companies cant.

 

V7.

[bigcahunak]

Originally posted by DelfoZ:

where I can get a ilegal copy of mercedez benz?

Thats why I said that its two different topics. BTW: Merceds are kinda big, but think of it as buying stolen goods. Like memory sticks. Its the same thing, only that you dont download it, or get it on a cd from a friend. But again, piracy has nothing to do with price policy.

 

Originally posted by versionseven:

Basically they are just collecting royalty. Yes, I understand R+D cost money, but think of it as a service, it has to be scaled to the local economy. McDonald's does it, I cant see why software companies cant.

McDonald's pay rent salaries and others acording to local economy, aren't they?

And, you really should think of Software as phisical product. This is the same debate trying to persuade our clients that our computer work is the same work, instead of hearing the famous "cmo'n, you have it on the computer..." orangeno

[CRD]

I'm not a business person, but follow my logic here. Say a company starts selling their product at a reduced price in a foreign country. They look at the economy and decide to sell their widget that normally is priced at $2000 for $50. With the way the internet is, don't you think that I could just find a web site in that country and order it from there for $50? So the company loses $1500, but I think it would still be legal.

 

I think part of the problem is specific to what you are selling. No one would go to the trouble to go to a foreign country to buy from McDonalds to smuggle it back to the US. Cars and too big and shipping a car is hard to do. But a box of software is perfect to put in the mail. It would set up a huge import\export business that would cut out the original company, so it would lose money.

 

In the US, I've heard people complain about the lower rates that foreign labor can charge because their living expenses are so low. I guess this is the other side of the coin.

 

Just a thought.

 

Colin

[Christopher Nichols]

Yeap... you can go both ways on that. If a software has to cost the balanced amount of that countries exchange rate, then the company should be forced to charge US prices when selling their services to the US. That way the US would not have to compete with the $2,500 animations produced in China and Vietnam.

[sgee]

A couple of years ago, I purchased a copy of lightscape. Being South african, living in UK I investigated buying it in SA and using it in UK. I found out that the cost was cheaper if I bought it in SA, but the licence would not be valid in UK. The same was for other Autodesk products. The price was slightly cheaper, but not massively scaled.

 

Another work college had bought three copies of Autocad in South Africa before moving to UK. He had to pay an upgrade fee, to use the licences in UK.

 

So in conclusion there was a slight price scale then but I am not sure what the status is today.

[jucaro]

CRD said

... In the US, I've heard people complain about the lower rates that foreign labor can charge because their living expenses are so low. I guess this is the other side of the coin.

Its somehow a pitty and ironic actually that we have to charge our foreign clients at lower rates than our US, UK, and some European counterparts. It makes all the more difficult for us to get our ROI for purchasing software priced at US$ rates.

[Guest versionseven]

Originally posted by CRD:

I'm not a business person, but follow my logic here. Say a company starts selling their product at a reduced price in a foreign country. They look at the economy and decide to sell their widget that normally is priced at $2000 for $50. With the way the internet is, don't you think that I could just find a web site in that country and order it from there for $50? So the company loses $1500, but I think it would still be legal.

 

Colin

Most software are licensed to specific geography, ie. A copy of Autocad from Australia is not valid in US and vice versa. You can still use it but it would be the same as using a pirated copy, cause it is not licensed to that country.

 

Version Seven

[Richie]

Hello

 

If you move to another continent (country) one time in 10 years period, your copy you purchased in South Africa or Australia will be valid in the US too.

Without any charges or upgrade costs.

 

Why? Because it's not considered to be a businnes change, but life change.

 

Anyway in the EU such funny agreements are not valid.

You can purchase your product where ever you want (on the whole Planet).

Many companies trying to make different prices for their products for different locations which is OK.

But you can NOT prohibite (it's NOT ALLOWED BY THE EUROPEAN TRADEIGN LAW) the resselers conditions (ie To say: Do not sell to foreigners).

 

And yes, also the price of a car can be different by more than 35%, only because of the financial status of the country (also inside the EU!).

 

Well, you maybe ask, why I'm talking so much from the EU?

I guess the most people from this forum are coming from the USA.

The answer is: If such company (who want to make his own rules) are not accepts the TRADING LAW in the EU, he will NOT get a permission to sell his product on the European Market.

!In NON of the EU countries.

 

And for the EU user in this forum: No matter what the (your) Country specific law are saying about the trading in your coutry, the trading law of the EU have higher priority level.

Therefore in some cases the country specific trading laws are not valid.

 

Richie

[Richie]

Hello

 

> A copy of Autocad from Australia is not valid in US and vice versa. You can still use it but it would be the same as using a pirated copy, cause it is not licensed to that country....

 

Well, this is not the case in Europe.

You can buy the software where ever you want.

And it will be fully licenced (also if the manufacturer of the software not giving you support).

 

And you can allways resell your software without any reason.

 

RIchie