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:
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.Source: PC Pro
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37 Comments on UK to pay 68% more for Office 2007 then counterparts in the USA

#1
ghost101
Lol, exchange rate? Hows that an excuse? As for taxes, in the UK it'd be 17.5% on top. Most other european nations have a 15% tax.
Posted on Reply
#2
Alcpone
Will there be that much of a benefit in upgrading to 2007? 2003 does the job fine for me and how many improvements can they make???

Just isnt worth it imo!
Posted on Reply
#3
ghost101
They are CDs, how can there be greater distribution costs? Game publishers, Music labels seem to do it fine. Why cant microsoft?

This is blatant price discrimination being used in order to increase profits.
Posted on Reply
#4
Dippyskoodlez
Right now 1USD= .5 GBP.

$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.
Posted on Reply
#5
Alcpone
Dippyskoodlez said:
Right now 1USD= .5 GBP.

$75 Program in USD = 150 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.
£75 = $150 lol ;)
Posted on Reply
#6
ghost101
Most businesses recieve VAT refunds though. So the cost to them will be less. In the UK theyd recieve a refund of 17.5%.

So that would still be 0.825 x £600 = £495.

Which means, that distribution channels are costing Microsoft, nearly £150 per copy. Lol.
Posted on Reply
#7
Tatty_One
Senior Moderator
Dippyskoodlez said:
Right now 1USD= .5 GBP.

$75 Program in USD = 150 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.
Lol you got that the wrong way round $75 program = £37.50 (but I know what u mean), how can they claim exchange rate?, the pound is so strong it should be cheaper not more exspensive, what tax do you pay in the US? In anycase they will export tax free and UK will just add the 17.5% on top.
Posted on Reply
#8
Alcpone
Tatty_One said:
Lol you got that the wrong way round $75 program = £37.50 (but I know what u mean), how can they claim exchange rate?, the pound is so strong it should be cheaper not more exspensive, what tax do you pay in the US? In anycase they will export tax free and UK will just add the 17.5% on top.
You got it wrong aswel lol

£75 = $148.45

:rolleyes:
Posted on Reply
#9
ghost101
Thread is turning into a comedy of errors. Alcpone, youre using the same exchange rate. Youre saying the same thing.
Posted on Reply
#10
Dippyskoodlez
Alcpone said:
You got it wrong aswel lol

£75 = $148.45

:rolleyes:
He used the USD not the GBP symbol...

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.
Posted on Reply
#11
Alcpone
:laugh:

Well we all know what we mean! Hopefully ;)
Posted on Reply
#12
EastCoasthandle
Wow, unless 2007 cooks breakfest, lunch, dinner, helps you do your job, predicts the lottery and can tell you the meaning of your life, 2003 is more then able to do what it's design to do. Are you really that gullible for marketing tactics?

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.
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#13
Jimmy 2004
Well it looks like I'll be sticking with XP and Office 2003 for the time being.
Posted on Reply
#14
ghost101
EastCoasthandle said:
Wow, unless 2007 cooks breakfest, lunch, dinner, helps you do your job, predicts the lottery and can tell you the meaning of your life, 2003 is more then able to do what it's design to do. Are you really that gullible for marketing tactics?
Its aimed at businesses rather than normal consumers. If it provides a 5% productivity increase firms will be jumping at this.

Consumers will always be able to get the student license version which which wont be anywhere near £600.
Posted on Reply
#15
lemonadesoda
I think I'm going to start a business importing US Office into the UK. What a flippin rip-off. And for MS to blame the exchange rate... then that shows whoever said that, is a complete moron, and shouldnt be working in any international business.
Posted on Reply
#16
ghost101
lemonadesoda said:
I think I'm going to start a business importing US Office into the UK. What a flippin rip-off. And for MS to blame the exchange rate... then that shows whoever said that, is a complete moron, and shouldnt be working in any international business.
Why not just do it for cigarettes or booze? Youll make more money. Oh wait, theyre both illegal.

edit: lol, id like to see your firm take on microsoft and hm customs&revenue in a legal battle.
Posted on Reply
#17
Dippyskoodlez
EastCoasthandle said:
Wow, unless 2007 cooks breakfest, lunch, dinner, helps you do your job, predicts the lottery and can tell you the meaning of your life, 2003 is more then able to do what it's design to do. Are you really that gullible for marketing tactics?

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.
Screw y'all!

Office 97 FTW! :roll:

No, I actually use a mix of open office, google office, and office 2K. :)
Posted on Reply
#18
ghost101
Been using Office 2007 Beta. So ill use it for about a year. If i give office 2007 a life cycle of 5 years, that means ive been getting £120 worth of software for free :).
Posted on Reply
#19
bornfree
I always knew Microsoft was out to help society... out of every last dime.
Posted on Reply
#20
Alcpone
Dippyskoodlez said:
Screw y'all!

Office 97 FTW! :roll:

No, I actually use a mix of open office, google office, and office 2K. :)
lol

I just use plain and simple 2003 small business edition!
Posted on Reply
#21
Unregistered
ghost101 said:
Most businesses recieve VAT refunds though. So the cost to them will be less. In the UK theyd recieve a refund of 17.5%.

So that would still be 0.825 x £600 = £495.

Which means, that distribution channels are costing Microsoft, nearly £150 per copy. Lol.
Just so you know, the maths here is slightly flawed.

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....
#22
ghost101
v-zero said:
Just so you know, the maths here is slightly flawed.

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...
Yes, im sorry. I should have known that.
Posted on Reply
#23
Unregistered
I wasn't trying to be a prat... But the (closet) mathematician in me jumped at that...
#24
Alcpone
ghost101 said:
Yes, im sorry. I should have known that.
Or another way to work it out..

£600 x 7 / 47 = 89.36

£600 - £89.36 = 510.64

Good formula to remember ;)
Posted on Reply
#25
ghost101
v-zero said:
I wasn't trying to be a prat... But the (closet) mathematician in me jumped at that...
lol dont worry. Im supposed to be taking an Economics degree with 2 advanced maths modules. So its actually embarassing.
Posted on Reply
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