Your experiences with music software price differences?

Nyquistic

I'm just wondering have people noticed how crazy music software pricing has become, particularly now with the dollar rate so low? For example, if someone in Ireland wants to buy Cubase 4, then buying directly from the appointed distributor for Ireland (Arbiter UK (!) ) will cost you GBP £649 + carriage, i.e. you won't have much change out of €1000. On the other hand, someone in the US can buy the exact same product (with the additional of a sticker that says "Competitive Upgrade" on the side) for USD $399, or about €270 !!!!!!

That's a difference of €730, or more than 3 times the price.

Of course, the American distributor won't deliver to Ireland; and if you want support and upgrade eligibility, you have to either buy it from Arbiter, or from one of their dealers, and register it with them (for an additional fee!).

Now consider that Cubase is a European product, but if an Irish person wants to buy it, then have to transact across the GBP/EUR currency boundary twice, and end up paying more than three times the cost that an American customer pays.

Are there any economists/barristers out there who can explain how this is legal? Is this not a cartel / price-fixing scam?

Discuss.

unclebill98

It aint just software tbh, I got Logic6 for 300 euro. Would have been close to 1k here. Got it from Music123.com at the time.

cornbb

Nyquistic wrote: »

Are there any economists/barristers out there who can explain how this is legal? Is this not a cartel / price-fixing scam?

Yes, I would also like to hear the answer to this. Without a doubt we are getting ripped off big-time

Feelgood

Dunno what the story is here alright, its definitely not down to import taxes etc. I think there is just some sort of "agreed" retail price for the European market.

Recently purchased at Gibson LP Custom from a guy in the UK who was sick of getting ripped off also, so he basically went direct to the factory - i.e. Gibson and bought direct. He sold me the LP at €2200, brand new out of the box whereas the price here is €3999!!. He was completely straight with me and told me there was a very small profit in that for him to keep to cover costs etc...but basically he buys them direct, including import taxes for about €1899. So the high street retailers add bloody 2k to the price!!!!.

Also worth noting that if you have an Irish VAT number you can claim the VAT back on overseas purchases as the items are being exported....So if you buy from say somewhere in the UK or maybe the North, 17.5% VAT should be deducted from the retail price and you only have to pay back the VAT on resale...i.e. if its for yourself you wont have to...:)

Nyquistic

Feelgood wrote: »

if you have an Irish VAT number you can claim the VAT back on overseas purchases as the items are being exported....So if you buy from say somewhere in the UK or maybe the North, 17.5% VAT should be deducted from the retail price and you only have to pay back the VAT on resale...i.e. if its for yourself you wont have to...:)

Not quite true, I'm afraid. If you are a private individual you have the choice of paying VAT at the source country's rate (i.e. 17.5% in the UK) or at the destination country's rate, which in Ireland is 21%. The only way you can reclaim VAT (or any sales tax) as a private individual is under the various provisions for tourists, which would require that you actually travel to the country and bring something back, then reclaim it from here if the product qualifies .... otherwise, you're limited to €180 in our case.

Or, you could just chance it of course .... a friend of mine walked through Dublin Airport yesterday with over €5500 of music gear and didn't even see a customs officer. Great little country!

With savings of 70%-80% possible on music software, it would make perfect sense to do a quick Ryanair to the US, bring the dongle back in your pocket, post yourself the manual and torrent the installation CD over the net.

empirix

buy all mine from the states - save a lot too, u just gotta find a dealer that will mark it as a gift - they exist!

squibs

Would it be correct to say that the companies that offer direct download of the software are usually more equitable? FL Studio makers Image Line, for example, charge a dollar value wherever you are.

Actually - I think Sonar prices on their online shop have a fairly equitable system too - the exchange rate isn't perfect but it costs less euros in the euro online shop than in dollars at the US shop. And that is for a physical product with printed manual. Vote with your wallet!

Nyquistic

squibs wrote: »

Would it be correct to say that the companies that offer direct download of the software are usually more equitable?

Definitely, I already have voted with my wallet on such things as Reaper (www.cockos.com) and Samplelord. It is correct that VAT can be charged on distance sales to Ireland at the Irish rate (as Thomann do), but even then the savings are downright enormous compared to what the rip-off merchants here are looking for.

I realise that online software sales have a very low overhead, and I don't mind being charged more if I buy the same product in a shop .... provided I get advice, a little bit of courtesy and respect, and some prospect of after-sales service. I think 20-30% more would be accepted by most people .... it's when you start getting charged three times the price that it stops being funny.

What is wrong with these people? Is the logic something like, "Well I only need one fool to pay that price and I've made as much money as I would have making three sales at the proper price!"

I think the results of the poll above should be a sign to these merchants that the only thing that's kept them in business until now is the lack of competition.