So why is Microsoft charging more?

On September 27, 2013, in Rants, by

A bit of background – I spotted these Ehrman needlepoint kits and wanted the Paris and Eiffel Tower kits.  But I soon found out that they no longer had the Eiffel Tower one in stock.  So we searched around and found an Australian firm that still had one in stock.  I was a bit surprised to see that the AU to US conversion on the site was nearly dollar for dollar.

So first thank you for having a Sydney needlepoint store that carried the Eiffel Tower needlepoint kit – and apparently I got the last one in stock.

But that got me to thinking… the US to AU is near dollar for dollar now….

so why is Microsoft able to charge more in AU than here?  Yeah I know just because they can….but just because they can isn’t good business in the long run.  People will look for options, yes?


4 Responses to So why is Microsoft charging more?

  1. Ian Bowers says:

    It is all to do with sales tax, in the USA the tax is not included in the headline price, in Au it is. Then you won’t have to pay the tax on an export from Au, but you do for local consumption.

  2. Paul Crosbie says:

    It’s not just Microsoft. And it’s worse in NZ, right next door to Aus. Australia is 4th cheapest place in world to by iPhone, NZ is 25th. Why?

  3. Sepp says:

    Hi from Australia ..
    Silver Partner fee is here A$ 3300.00
    the SBS special in US$ 999.00 here A$ 1760.00
    The Surface Pro 2 256GB is A$1469.00 I ordered it … crazy me ..
    The Surface 2 32GB is A$ 529.00 I ordered 2 fro my grandkids … otherwise I would be in trouble .. LOL..
    todays exchange rate .. 1 US$ — A$ 1.07 … nearly the same
    we have here a 10% GST included in the price … what are the state taxes at your location ..



  4. Joe Raby says:

    Yup, it’s because they can. It took years before they dropped some of the prices in Canada, and some are still far off from accurately representing the exchange rate. I asked one time about this and they said they set prices at the start of a product release cycle and don’t change it until the next release cycle, which could be as much as 3 years away.

    Sometimes it works in our favour: Office 365 Home Premium, for instance, is $99.99USD/yr, but $99.00CAD/yr. Often it doesn’t though: Office Professional 2013 is $399.99USD, but a whopping $519CAD! It should be at least $100 cheaper.

    Adobe used to do something similar though: they would sell Adobe Creative Suite on their US website (and ship to Canada) for ~$1700CAD for the whole shebang, but Canadian Distributors would charge resellers over $2000 just to buy “at cost”. They said it was due to the exchange rate, which was a total lie because the CAD$ was exchanging for a better rate than the US$ back a couple years ago when I looked into it.

    The exchange rate today is 1CAD to 0.96USD. The worst it’s been since 2010 is about 0.93USD. The bean counters at Microsoft suck at math.