Discussion in 'other anti-trojan software' started by JayTee, Dec 2, 2004.
did they just increase the price for ewido plus. now its on par with boclean
Unfortunately due to the currently weak dollar we were forced to do so ;(
I did know that a weakening dollar in general raises the costs for people exporting into the USA but I never thought about it effecting the software that I might purchase.
I guess over time, a weakening dollar would make American based software companies more competitive strictly based on price.
It is a truely bad decsion to raise prices because of a strong euro! Totally the wrong message to customers.This makes all the companies who are paid in dollars cheaper...
From a businessman's point of view it is a hard decision to raise prices in a enviroment where everyone is looking for the best deals and inflation is low. With a weak dollar any country that sells products in the USA loses money when it is converted back into what ever their local currency is.
So, for right now, many foreign software companies are at a disadvantage when selling in the USA.
Just to give a simple example. Company A is located in the USA. Company B is located in Europe. Both companies sell the same product in the USA for the same price. Both have the same fixed costs.
Let's say they both sell the product for $20. Then company A has a big advantage with a weak dollar because when company B converts their dollars into Euros they lose money on the exchange rate.
Let's just say in this is example when Company B converts back to Euros they have the equivalent value of $15. With both companies having the same fixed costs this means Company A is making more of a profit than company B, even though they sell the same product for the same price.
Company B maybe able to compete for awhile but if the dollar keeps declining, it gets to the point where Company B is not making money due to the exchange rate or perhaps is losing money.
Company B will either have to cut costs which may mean laying people off or cutting research and development (R&D) or cutting down on customer service or having shorter work hours.
If company B lays people off or cut customer service or cuts down on R&D then their customers complain. They start getting the "Your customer service is horrible, I am going to change to company A" or you get the "Your not keeping up with the newest features...how come Company A has this feature and you don't? I am going to start using company A products from now on".
Company B may decide to raise prices in the USA so that when converted back to Euros, he has the equivalent of the Company A's $20. Company B raises prices so he can keep the same level of service as before. The only problem is that when company B raises prices they get:
and people start going to company A because it is cheaper.
The only way Company B can really compete is by making a product that has a percieved value that is better than company A. That way people will say, "Well, company A product is cheaper but company B makes a better product"
That is a extremely simplistic view of how the exchange rate works in favor of and against companies. Please...I know there are things such as hedging against currency fluctuations....I don't want to be flooded with responses on how this simplistic view doesn't work all the time because I already know that but in general...that is a basic view of the decisions that Ewido had to make and all other companies outside the USA might have to make at some point in time.
You got it! And if you are U. S. Customer....ouch . Good Econ lesson for those who do not understand. For those who still have questions don't be it can be difficult.
Thanks Starrob! Couldn't have explained it any better
We have chosen to hold and even improve our quality. But that's not possible if you makes large losses. The ewido security suite is still a lot cheaper in USD than in EUR. The correct price would have to be: 29.95 * 1.33 = 39,83
That means: In the past we have lost $10/sold license. But you can imagine that we cannot improve our software if we loose so much money. Therefore we were forced to decrease this to $5/sold license, which is still bad.
@Edwin024: ewido ($35) is still one of the cheapest compared to for example TDS-3 ($50), TrojanHunter ($50) and BOClean ($40)...
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