Dollars vs Pounds

Dar Scott dsc at swcp.com
Fri Nov 3 14:45:17 CST 2006


On Nov 3, 2006, at 10:17 AM, Kay C Lan wrote:

> It's not
> so much that I'm being charged in £'s, I wouldn't care if it was
> sheckles, shindarkles or south pacific pesos, just so long as the
> exchange rate to clams on my Visa statement is 'roughly' the same.

There might be good reasons for different prices in the US and  
outside the US based on either associated costs (support/bribery/ 
tariffs/paperwork/translation) or demand (getting the most out of  
that market), but I suspect the differences are because prices are  
based on 2002 exchange rates.  The US dollar has been falling in  
value.  Maybe RunRev has an old exchange rate chart on the wall or  
are locked into a rate based on old contractual requirements or  
certain royalties are based only on the USD prices.  Also, RunRev  
probably doesn't want to be changing prices a lot.

And US buyers and British buyers might have trouble understanding  
exchange rates, so maybe we have to have our own prices.  The buying  
learning curve might be too much for us, otherwise.  And for US  
buyers, if you charge $561 instead of $599, you are leaving $38 on  
the table.

This vast difference would certainly encourage customers to be  
virtually in the US, which is probably not what RunRev wants.   
Grishim's law applies, I think.  I don't think Grishim's law can be  
wished away, or avoided by strong moralizing statements.

(I know there are arguments for using old exchange rates in prices,  
but I'm not sure how that goes.  Maybe folks should pity those with  
USD savings accounts, which now buys less in the world, and gladly  
let them have a price break.)

In any case, I think the recent talk about this on this list and  
elsewhere has pushed this topic to a point where RunRev has to  
address the issue.

In a real sense, pricing policy is RunRev's business.  In the same  
sense, buying identity is that of the buyer.

Dar




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