Delphi Programming

and software in general.

Tuesday, August 26, 2008

Delphi 2009 Pricing - Euro Markup = 31%

-- start edit --
I made a horrific mistake (worksheet formula cut and paste with wrong cell reference). The correct ratio is 31%, not 47%.
I should have taken a hit from my own comment on the 1.31 ratio... sheesh...

Worksheet updated.

Obviously the 1 USD = 1 EURO assumption was completely false.
-- end edit --

Embarcadero / Codegear are still treating 1 USD = 1 EURO. In Norway, the exchange rates give a markup ratio of 1.47 times. Personally, I think that is rather stiff. You can see the calculation here.

The middle example with the 1.31 ratio is due to Norwegian EUR/USD currency exchange margins (DnB NOR Bank). The true cost difference for the Embarcadero webshop prices in Norwegian Kroner is shown in the rightmost blue columns.

Tentative prices from one local reseller indicates a markup ratio of 1.33, comparing reseller out price to US webshop price. Why does this feel like being ripped off? When buying software online, I am used to getting the same price as the rest of the world.

Posted on CodeGear forums: https://forums.codegear.com/thread.jspa?threadID=1589
Posted by Lars Fosdal at 08:14
Labels: ,

8 comments:

  1. Unknown26 August, 2008 10:55

    Sad reality is that for most software it seems best to just purchase it in the USA. Be it the Windows, Photoshop or Delphi.
    Apparently Europe is "willing" to pay more for software so they charge more.

    Personally I ask my brother who lives in the USA to purchase software for me unless I can order it myself.

    ReplyDelete
  2. Janneman26 August, 2008 11:21

    This behaviour has stoppped me from buying Dreamweaver for years and personally would stop me from buying Delphi 2009 too. We may still upgrade because my boss pays ;-)

    ReplyDelete
  3. Jaakko Salmenius26 August, 2008 12:26

    I had the same problem with Dreamweaver. Few months ago I got Access US account
    http://www.myus.com
    Now I can order eveything as I would live in US.
    Dreamweaver in Finland consts 2 times as much as in US. When I called them why they say that localization to Finnish cost. Well there is no Finnish Dreamweaver and they sell English in Finland! Last time I ever do any busines with Adobe Finland.
    Very sad to notice that CodeGear is bit like Adobe.
    Hey! If Euro drops like it has done past three weeks we will soon see 1 EUR = 1 USD.

    ReplyDelete
  4. stanleyxu (2nd)26 August, 2008 16:45

    @Jaakko: I am not so sure, if CodeGear permits customers to purchase Delphi in US and to use it outside of US. If it is permitted, then CodeGear will lost a lot of money :D

    ReplyDelete
  5. Jolyon Smith26 August, 2008 23:07

    The problem is not so bad here in NZ, or doesn't appear to be until you add GST (12.5%) to the price on the CodeGear store pages.

    For people buying as part of a business they will claim the GST back, but for people purchasing for personal use, that GST is a part of the price.


    (Aside: if the pricing is to "help" resellers, why does CodeGear have an NZ store that sends business to Digital River - a US company - rather than developers-inc - the NZ reseller?)

    Back when Delphi was owned by Borland sales policies that favored corporations might have been expected.

    Corporates are likely to buy boxed product from a local reseller anyway, where-as individuals are surely the prime market for download purchases.

    For some time now we've been being told that CodeGear is "where DEVELOPERS matter". hmmm...


    So why not simply remove downloads from the international stores and redirect download purchases to the US store and handle them all from there?

    At least as a starter for 10, until a more community friendly distributor/reseller channel can be more generally devised.

    ReplyDelete
  6. Lars Fosdal26 August, 2008 23:14

    Jolyon, I could not agree more.

    ReplyDelete
  7. Unknown27 August, 2008 15:42

    I also use www.myus.com. It's the real deal for ebay or Amazon orders of boxed software. I've also bought from regular online retailers using my US address.

    I can get anything available in the US, with great US shipping rates for international.

    ReplyDelete
  8. Unknown30 August, 2008 19:03

    I had very bad experience with Bongous.com and have switched to www.myus.com and been extremely pleased. Thanks for the advice!

    ReplyDelete

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