Price increase in the UK

Malcolm_fl

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I have just received this e-mail from Adobe,

"We hope you are enjoying your subscription to the world-class products and services Adobe provides to help you do your best work. We wanted to share some important information about your renewal price.


As part of doing business globally, Adobe monitors currency exchange rates in order to make adjustments to our pricing up or down as needed. You may be aware that currency exchange rates have fluctuated significantly over the last few years. As a result of recent changes in exchange rates in your region, the price of Adobe products and services is increasing starting on 6 March 2017.
The current price of Adobe Creative Cloud Photography plan will change to £10.10 per month incl. VAT on 6 March 2017. As an Adobe Creative Cloud Photography plan subscriber, the price for your subscription won’t be impacted during your current subscription term. However, at the time of your renewal, which is scheduled for 19 July 2017, your price will change to reflect the then current local currency price. We’ll be sure to send you a reminder email with your new renevewal price as your renewal date gets closer.
Thank you for being a valued customer. We look forward to continuing to provide you with the latest innovations from Adobe as part of your subscription.
Please contact us if you have any questions about this change or your renewal.
Thank you,
Adobe

That's a £1.53 increase for UK users.
 

Dave70d

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Come June I wont be paying £121.20 year in year out, as Christmas I got LR6 Standalone and Elements 15, so that will do for me.
 
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Assuming the cost to our US and European co-members has not similarly increased, then I'd have to say that this UK increase is hardly surprising, given the way the pound has fallen against the dollar. In which case I'd blame it on the Brexit vote, not Adobe. There'll be plenty of more costly increases in other areas before this is done. I suppose I should be expecting a similar missive from Microsoft regarding my Office 365 subscription....

Mind you, if the pound ever recovers (cue raucous laughter) I'd expect the price to come back down again!
 

Colin Grant

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It does though illustrate the downside of subscription. With many more products doing what LR does editing wise I really am now beginning to think that I will drop my subscription when it runs out in May. Truthfully I am using plugins more and more (cannot remember when I last used PS) so maybe it is time to go the free route and use Bridge for organisation purposes. Indeed that would work well and especially so if Adobe would retail ACR as a plugin to Bridge. Macphun's Luminar is looking pretty good these days and another update is on the horizon - they are also promising a DAM. So there are options nowadays.

I am not confident that Adobe will be in a hurry to reduce prices if the exchange rate moves the other way!
 

Dave70d

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I think when the pound does recover, Adobe wont drop the price again. As some people will carry on paying the new £121.20 every year, I think other software companies are rubbing their hand with joy now, as they might have a surge of new members buying their products.
 
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And it illustrates the downside of price discrimination .

There are indeed more options at the moment, mostly developed in countries which don't use the Pound. How long will they last, and whether a chain of plugins or independent apps can be defined as a workflow - I'm not so sure. As an aside, see this interesting article https://mattk.com/state-post-processing-photo-editing-2017/ - interesting despite completely ignoring the need to manage as well as adjust photos.

John
 

Colin Grant

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I think when the pound does recover, Adobe wont drop the price again. As some people will carry on paying the new £121.20 every year, I think other software companies are rubbing their hand with joy now, as they might have a surge of new members buying their products.

It will get people thinking for sure.
 

Colin Grant

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And it illustrates the downside of price discrimination .

There are indeed more options at the moment, mostly developed in countries which don't use the Pound. How long will they last, and whether a chain of plugins or independent apps can be defined as a workflow - I'm not so sure. As an aside, see this interesting article https://mattk.com/state-post-processing-photo-editing-2017/ - interesting despite completely ignoring the need to manage as well as adjust photos.

John
I don't use a chain of plugins, imo there is no need to these days. I just use Luminar as a plugin to LR. Thanks for the link.
 
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Malcolm_fl

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Assuming the cost to our US and European co-members has not similarly increased, then I'd have to say that this UK increase is hardly surprising, given the way the pound has fallen against the dollar. In which case I'd blame it on the Brexit vote, not Adobe. There'll be plenty of more costly increases in other areas before this is done. I suppose I should be expecting a similar missive from Microsoft regarding my Office 365 subscription....

Mind you, if the pound ever recovers (cue raucous laughter) I'd expect the price to come back down again!

Interestingly though, at the current exchange rate $9.99USD = £7.87GBP a difference of £0.70p from the current subscription of £8.57GBP, so Adobe are certainly adding a loading on the back of Brexit, which I suspect many many companies will do, to increase revenue and use Brexit as the excuse.
 
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Though I agree Brexit can be used as an excuse, it is also a genuine reason. But my calculation is that Adobe are adding about 7p.

Until the Brext vote Adobe US earned $12.68 a month (£8.57 x $1.48=£). Now though, your £8.57 only earns Adobe US $10.80. Restoring their previous $ income means a monthly UK price of £10.07 ($12.68 / 1.26) and they’re putting it up to £10.
 
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My calculation is that they are adding about 7p.

Until the Brext vote Adobe US earned $12.68 a month (£8.57 x $1.48=£). Now though, your £8.57 only earns Adobe US $10.80. Restoring their previous $ income means a monthly UK price of £10.07 ($12.68 / 1.26) and they’re putting it up to £10.

Better include the VAT in that calculation, otherwise it sounds like Adobe were charging way more here all along.
 
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Better include the VAT in that calculation, otherwise it sounds like Adobe were charging way more here all along.

Sorry, have I missed the VAT or are you suggesting I should have done my calculation on the ex VAT price?
 

Dave70d

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If I was going to carry on with the CC, which I wont be then my price pm would be £10.10. I have tried the Standalone and think along with Elements 15 and Nik, it will do me.
 
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Sorry, have I missed the VAT or are you suggesting I should have done my calculation on the ex VAT price?
You said "Adobe US earned $12.68 a month" - so just worth clarifying they actually earned $12.68 less VAT, since the government got the VAT. Just a minor clarification for those who think Adobe were overpricing all along.
 
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OK, you are right, Victoria. I think I'll stick with the clearer if less-precise values.

But, 'ere, are you trying to get me to put my accounting hat on again? My exchange rates were rounded to 2 digits and used arbitrary dates too, plus I've already slipped "price discrimination" into this thread!

John
 
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But, 'ere, are you trying to get me to put my accounting hat on again?

Yep! ;) Well, why have an accountant around and attempt the sums myself. :D
 
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In which case I'd blame it on the Brexit vote, not Adobe.
While the Brexit vote shouldn't have impacted the GBP, fear and speculation did. I expect to see a recovery in the GBP. So if I were a speculator, I'd be a GBP buyer now.
 
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Well, Cletus, that's not Adobe's bet. A low Pound is good for the exports that can take some of the edge off this unnecessary mess.
 
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Well, Cletus, that's not Adobe's bet. A low Pound is good for the exports that can take some of the edge off this unnecessary mess.
Adobe is selling product is today's GBP. That is a loss they have opted not to absorb. They are extending current subscriptions at the previously agreed price. So these continue to be absorbed. Who is to say that Adobe is not buying cheap GBP to off set those GBP sales?
 
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They're setting the price looking forward. Even if Adobe conduct any forward buying or other currency operations, they would be marginal compared to the CC income stream, and only to mitigate or reduce the risks of what they expect. I wouldn't buy pounds unless you wanted to sit on them for a few years - a low Pound makes sense given the risks to the UK economy.
 
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