Australia Pays 68% More for SoftwareAdded: Sunday, August 4th, 2013
Category: Bit Torrent Freedom > The Industries Of Records, Gaming, Software, Movies
Tags:ET, p2p, Torrent, Piracy, Peer To Peer, Network, Hackers, Internet, BitTorrent, Google, utorrent, bitcomet, extratorrent, www.extrattorrent.com, 2013
The Australian government has been investigating unfair electronics pricing in the area for a while now. Unfortunately, it turned out that the Aussies have really got a raw deal.
Unsurprisingly, such corporate giants as Apple, Microsoft, and Adobe weren’t very keen on the inquiry, because the Australians pay about 66% more for Microsoft products and 42% more for Adobe software than the rest of the world.
It turned out that games cost 84% more than in the United States, music 52% more and hardware 46% more. Apparently, inflated prices were only part of an added cost of business to trade in the country, but it doesn’t actually hold up to scrutiny while considering digital downloads.
According to the recent report, the investigating committee claimed it has no idea why it’s “almost invariably cheaper” for Australian games to buy and ship physical media from the United Kingdom to Australia than to get a copy of the same game.
Taking into account the evidence presented to the Committee of very large price differentials, it turned out too difficult for it to avoid the conclusion that such practices lead to international price discrimination to the clear disadvantage of local consumers and companies. Therefore, the Australian Bureau of Statistics was recommended to work on a program that would monitor the price of IT products, hardware and software in Australia and everywhere else in the world.
While universities were encouraged to investigate the needs and costs for education, the Committee suggested to enforce a federally mandated IT procurement policy as well. The most interesting fact is that Australians can get a “right of resale” legislation which would allow them to sell on old digital music and ebooks.
August 4th,2013Posted by:
Sunday, August 4th, 2013
|It's always been like this in Australia. I began working in computer retail in 95 before moving on to IT after UNi. It's just ridiculous--and nobody knows why and nobody has done anything about it. For as long as I can remember we've bought all our software from the UK. eBay is the only way to buy software here.|
|posted by (2013-08-05 01:23:42)|
|Here is an Economist's look at why.|
1: Minimum wage here is $16.37/hour. In the US it is $7.25/hour. So all the retail software store employees (EB Games) are making more than twice as much.
2: Real Estate and retail rental rates are significantly higher as well. Overhead for software retail stores is much much higher than US counterparts.
3: The exchange rate is at $.89 AUD/USD. This is down from half a year ago ($1.05 AUD/USD), but significantly up from 3 years ago ($.75 AUD/USD). This means that average wages is (16.37/7.25)(.89)= 2 times the average wage of US counterparts approximately.
4: Software must be shipped physically overseas from US or Europe. That distance is the farthest most anything gets shipped in the world and extremely expensive. Software must be sold at higher price to account for the extra cost.
Even though software can be delivered as a digital download, labor practices are typically protectionist for workers. Retail outlets as well as government legislation requires that software developers such as microsoft and adobe inflate their digital download prices so that it doesn't harm retail software stores. For example, if a game were to sell digitally for $50 USD, EBGames Australia could not sell it for that cheap in store and be able to cover costs of employee wages, shipping from overseas, retail leasing, etc. (essentially all overhead costs). Generally, the cost is upwards of $90-110 AUD. That is an increase of 60-95% on the cost of the game. If these software companies were allowed to sell their software for "Fair" prices that they charge in the US, no one in Australia would buy in-store and this would be detrimental to retail software outlets, people would lose their jobs, and companies would go under.
If the minimum wage was closer to the rest of the world (or at least US), prices of all goods and services would be significantly less, BUT people wouldn't make as much money either. If the stupid politicians here wouldn't try to keep the exchange rate as high as it has been the comparative price would be much more in line with each other (.89*100 vs .75*100). Unfortunately, little can be done about overseas shipping or the extremely inflated real estate prices. Protectionist policies are also unfortunately necessary to keep certain industries alive when they can't compete globally.
The price differential may be unfair, but it is only following a natural business structure. So next time you think that minimum wage increases (or other protectionist policies) are a great solution to help out the lower wage individuals, think about the unintended consequences of price rises (inflation) due to increased money in the economy.
(This certainly is not an indepth analysis, just very brief. So don't go blasting me for omitting certain details.)
|posted by (2013-08-05 09:33:43)|
|Here in Australia we pay at least 68% more for everything, not just software.|
@Naxan: There are lies, damned lies, and statistics!
|As an Aussie what I do sometimes do, is use a VPN to make myself look like someone else, a Malaysian I find a good one. Then check prices.|
|maybe we open India software service to Australia, dis will help lower prices for people dere|
|posted by (2013-08-05 20:41:32)|
|we open India software service Australia|
|@Naxan Thanks for that very enlightening post.|
|posted by (2013-08-05 23:26:52)|
|What else is new why do you think we buy overseas, it is because of that, as a low income earner I can't afford Aussie prices.|
|posted by (2013-08-06 05:00:15)|
|having lived and worked in many countries, in Australia you pay more for almost everything.|
however the standard of life is the highest I have experienced of any country, earning $100k+ a year is fairly easy in Australia, free health, education and welfare for anyone so it is more than worth the added cost.
|posted by (2013-08-06 12:59:02)|
|posted by (2013-08-07 00:58:54)|
|Haha, It's not so bad.|
I may pay 46% more for hardware, but only because I cant download it for free.
I think I'm still winning.
|posted by (2013-08-07 02:10:39)|
|I understand that can be frustrating, but in Argentina we pay over a 100% extra for anything and earn between 1/4 and 1/10 of a US Salary.|
|posted by (2013-08-07 16:44:02)|
|i have to pay for the games and software i get in Australia ?|
.........and they wonder why people go for the "piracy"
arggg me harties .....
|you can't use those calculations to justify anything.|
in the philippines a flatscreen tv costs double than in switzerland.
a suzuki swift is 3,000 euros more than in the netherlands.
medicine is 3 to 5 times more expensive than in switzerland.
most appliances are made in korea or thailand or indonesia, but they cost double in the philippines, even though the shipping is much shorter distance and cost...
a drum set or guitar cost double.
a used, 15 year old surplus japanese truck with a 3 cylinder 660cc engine costs USD 3700.
new cars are even more ridiculous... as you can see by the price of the suzuki swift.
and most filipinos are below the poverty level.
the only things cheap in the philippines is land out in the province and food.
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