Why US Dollars?

[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