Why US Dollars?

[limited cv8r]

I was wondering why EFILive has based their purchase pricing on the US dollar? I understand that their biggest market is in the US, but it pisses me off to be at the mercy of the exchange rate every time I wish to purchase a license.If I was in the US then it would not matter so much as $99 US will always be $99 US for a license. Currently I need to purchase 1 maybe 2 more licenses,2 x $99 US = $198 US, 2 x $99 US x current exchange rate = $234 Aus,I have even contemplated a stream license, but $2495 US becomes $2950 Aus,starting to stretch the budget a bit.Has EFILive ever considered making their pricing country specific to avoid this type of senario?

[5.7ute]

I thought the samething, but at the end of the day the price only varies a bit for us Aussies.
On a side note I wonder how successful marketing would be if prices were in Zimbabwe dollars.$99us = $35,828 zwd.

[GAMEOVER]

I thought the samething, but at the end of the day the price only varies a bit for us Aussies.
On a side note I wonder how successful marketing would be if prices were in Zimbabwe dollars.$99us = $35,828 zwd.

Hahaha....:w00t:

[limited cv8r]

Some people may not worry about a few extra dollars here and there, but
I honestly would be a lot hapier knowing that everytime I wanted to log in and buy a license it would be $99 Aus , not some inflated figure,that extra $37 I would have to spend on 2 x licenses could buy me a carton,and I could drink & tune,but NO! The exchange rate means that I can only afford 2 x license tune now (no carton), wheres the fun in that.:cheers:

[Tordne]

Some years back we did actually offer four currencies (US$, AU$, GBP and US$). The administrative and accounting overhead to operate four currencies was significant and the decision was subsequently made to transact in a single currency. The US$ was chosen as the single currency based on their being the predominant market. Pricing was always set in US$ and the other were calculated at time of billing into the other currencies.

The thing to consider is that even if we were to transact in additional currencies (lets use AU$ for example) there would still be a conversion done against the US$ base price. For the price to be shown in AU$ on the store there would need to be a base conversion rate of ideally the current daily rate or at worst a rate that allowed for a potential variance which might end up with you paying more.

Basically what I'm getting at is that due to pricing be US$ based there is no way you can escape an exchange rate calculation occurring somewhere.

[Tordne]

I honestly would be a lot hapier knowing that everytime I wanted to log in and buy a license it would be $99 Aus...

This is the thing. The price wouldn't be AU$99, it would be US$99 x <exchange rate metric*>.

*To offer a fixed cost in another currency we would have to establish an exchange rate that reflected the daily rate and allowed for EFILive not losing out on exchange rate fluctuation. Then you'd get the inevitable "but if I bought in US$ it would be cheaper today that what is shown in my currency" :)

[limited cv8r]

How could it not be $99 Aus if it was offered at $99 AUS,there would not be any exchange rate. As for EFILive offering licenses previosly in different currencies,when was this, as i have been lurking here for some time and can only ever remember having to pay $US. At the end of the day I've got no choice what I pay, regardless of $US,$Aus,Zimbabwe dollars.$, I have chosen to use EFILive and must pay what they ask as there is no alternative vendor for their licenses.
How about you just make your priceing in $NZ dollars then everybody would be happy.(except EFILive)

[Tordne]

I think you're missing my point. If there was multiple currencies available a VIN license would not be US$99, AU$99, NZ$99 as it is not equivalent. Why should US customers pay US$99 when that is the equivalent of NZ$145 (today) and AU customer pay the equivalent of NZ$122?

It's just like anything else... For instance the price of a Holden Sportwagon SSV is not AU$72,000 yet it is NZ$72,000. Reason; Holden maintain their cost irrespective of the market the product is sold in.

[limited cv8r]

At the end of the day, I''ll pay, It just annoys me to be at the wim of the exchange rate,plus I needed something to rant about to get to 350 posts.

[Tordne]

Mate, I do feel you. I obviously have the exact same issue when purchasing product from AU or the US. Then there is taxes and duties, don't get me started on that!

[Blacky]

First let me say I sympathize with your comment, but there's no easy answer. We cannot have different price levels for different countries. All countries must be priced at the same value.

Something to consider... When we first issued the License prices in Jan 2005 the US cost was USD $99 and the Australian cost was about AUD $130
Since then, the US price has remained constant at USD $99, but the Australian price has dropped to around AUD $110.
If we had fixed the Australian price at AUD $130 you'd still be paying AUD $130 today.

EFILive is eating a loss with Australian sales every time that the Aussie dollar and other currencies strengthen against the US dollar.

Regards
Paul

[Tre-Cool]

eating a loss? that doesnt make sense.

If your selling at a fixed 99us dollars it shouldnt matter how many sales come from aus, usa. EFI still get the "same" amount of money after the conversion.

The aussie buyer just pays more.

The only benefit of the the aussie dollar going up higher against the greenback is that we are more than likely to buy more licenses at a time. Atleast thats the way i do it. therefore more money for you.

[swingtan]

Ease up guys....

Blacky is saying that EFILive is now making less per license, using a single US$ price, than they would if they were charging a flat rate of $130 AUD.

Think of it this way. EFILive as a company have priced a license at a certain amount, this amount is "1 EFILive-License" and for people on this forum, licenses could theoretically be traded like money. The problem is that in the wider world, an EFILive-License can't be traded for anything, so the value needs to be converted into a real currency. Given that the current financial market bases pretty much everything in USD, it's a logical conversion target. EFILive have looked at their business case and worked out that "1 EFILive-Licence" is worth $99 US, and that's the benchmark.

Given the current exchange rates, "1 EFILive-Licence" could be exchanged for....


99 USD
117 AUD
145 NZD
82 EUR
371 SAR (Saudi Arabia Riyals)


But that's right now, as Blacky has said, at the time the $99 US was fixed, the exchange rates would have seen most countries other than the US now paying more than they currently are for a license. Would I like to be paying $99 AU for a license? You bet, but I'd also like to be paying $0.50/lt for petrol as well. Prices are, what they are and at the moment, those not in the US are getting a pretty good deal compared to 5 years ago. Tre-Cool, You have it in one, just like any other item we buy from the States....

Given the amount of Internet buying that is done these days, most people would be pretty aware of the USD exchange rate and have a rough idea of what any item priced in USD will really coast them. It seems a pretty logical way of pricing for an international product.

Simon.

[Blacky]

eating a loss? that doesnt make sense.

It does if you take into account that we have to change the USD back into AUD (or NZD) after the sale. So we always get USD $99 per license - whatever that happens to be under the USD exchange rate of the day.
Its not just on the AUD sales, its on ALL sales in all countries (the US included) whenever that country's dollar weakens against the Aussie or Kiwi dollar we eat the loss.

Anyway, if we were based in the US then, sure I agree with you there would be no difference but we are based in Aus/NZ. If the Aussie or Kiwi dollars strengthen against the USD then we get less Aussie or Kiwi dollars at the back end of the transaction from the original USD $99 sale.

I'm not complaining for one minute, we've got a great company and we love what we do and that is the most important thing. I'm just trying to explain that its probably not as straightforward as it first appears.

Its the same for all exporters the world over.
If the local currency is high it hurts exporters but importers/consumers love it because imported goods are cheaper.
If the local currency is low it helps exporters but importers/consumers hate it because imported goods are more expensive.

Regards
Paul

[Tre-Cool]

ah right, i wasnt having a whinge. just wasnt sure what you meant by it seeing as the us $ would always be higher. (well atleast until the chinese dump it). then the world will have bigger problems.

P.S thanks for the replacement license.

[L31Sleeper]

Just set the price in AU$ I think everybody in the US would be happy to eat the difference
on behalf of limited cv8r.

[GMPX]

The other factor too is the cost of electronic components is based on US dollars, so sometimes we pay more (NZD) to make a V2 yet the sell price remains the same.
Here's an idea, one world currency, lets all change to Euro's, but make it Worldo's.

Cheers,
Ross

[L31Sleeper]

The other factor too is the cost of electronic components is based on US dollars, so sometimes we pay more (NZD) to make a V2 yet the sell price remains the same.

Cheers,
Ross

OK pack up the company ,Ross,Paul,Linda,andrew...etc, and move to the US