Sunday, December 3rd 2006
UK to pay 68% more for Office 2007 then counterparts in the USA
Internal sources within Microsoft have hinted that Office 2007 Ultimate Edition are suggested to retail around £600. Considering that (after factoring in the exchange rate) copies of Office 2007 Ultimate Edition are suggested to retail around £357, Microsoft is charging UK customers 68% more for the same product. However, Microsoft claims that it is not to blame for the increased costs for UK customers. A spokesman for Microsoft says:
Source:
PC Pro
It's up to our partners to set the pricing. We're not allowed to fix prices - that would be illegal.Microsoft is also blaming exchange rate, regional taxation and different channels of retail distribution for the increased cost to the UK.
37 Comments on UK to pay 68% more for Office 2007 then counterparts in the USA
Just isnt worth it imo!
This is blatant price discrimination being used in order to increase profits.
$75 Program in USD = 37.50 GBP.
Ultimate edition: $679 USD, translating to 339.5GBP. Microsofts price is about right with as most a shipping/label change due to market size maybe...
But 600GBP? Must be some gawdaweful taxes.
So that would still be 0.825 x £600 = £495.
Which means, that distribution channels are costing Microsoft, nearly £150 per copy. Lol.
£75 = $148.45
:rolleyes:
I originally had $75 = 150 because I was thinking 1 = .5 gives them double the required, but its half. I just forgot to fix it after I worked it out.
Well we all know what we mean! Hopefully ;)
I mean it's called Office 2007 for a reason. It's functionality (although can be used at home) is designed for the OFFICE ENVIRONMENT. So unless you are a owner of a business would you ever need to look at Office 2007. Even so, Office 2003 is just fine for everyday use at a lower price with less bloat.
Consumers will always be able to get the student license version which which wont be anywhere near £600.
edit: lol, id like to see your firm take on microsoft and hm customs&revenue in a legal battle.
Office 97 FTW! :roll:
No, I actually use a mix of open office, google office, and office 2K. :)
I just use plain and simple 2003 small business edition!
600 = 1.175 x N where N is the cost excluding VAT.
So 600/1.175 ~ £510.64
It may be a little thing, but little things bother me...
On a more topical note: It's no wonder piracy is so rife even in business and schools... With price hikes like this they're making a mockery of the buying public - why does the office suite cost more than Vista? I mean, which one do you think is harder to produce, maintain and protect?! Hmmm....
£600 x 7 / 47 = 89.36
£600 - £89.36 = 510.64
Good formula to remember ;)