Adobe Goes All-In on Subscription Pricing Model.

Started May 6, 2013 | Discussions thread
Marty4650 Forum Pro • Posts: 15,108
This is a no lose situation for Adobe

What Adobe will accomplish by raising their prices so high is that they will flush out all the casual users. People who buy CS, but don't really need it. Once they shrink their customer base enough, then they actually NEED higher prices just to stay even. If customers walk, then they just drop their prices and those customers will come right back, since they really do have the better product.

Any way you slice it, this pricing structure really helps Adobe at the expense of their customers.

And they probably will get away with it, since their image editing software is the best one out there.

There are only a finite number of things that can happen next, and they all end up benefiting Adobe:

  • Their customers might whine and complain, but still end up paying the higher prices. Adobe wins.
  • Their customers might whine and complain, and then find an alternative program. At this new pricing level, Adobe can stand to lose 20% of their customers and still stay at the same revenue level. If they lose more than that... then no problem... they just adjust their prices downwards until you stop thinking about switching to Corel. Adobe wins again.

Adobe has achieved a type of monopoly by simply being so good at what they do. There is nothing illegal about this, in fact Microsoft had the same problem, and so does Walmart.

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