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Trados, dollars and euros and discounts
Thread poster: David Brown
David Brown  Identity Verified
Spain
Local time: 09:26
Spanish to English
Dec 4, 2004

Why is TRADOS 20-25% cheaper in dollars? I ask this question as, for at least the last year, 1.0 euro = 0.75 dollars.

[Subject edited by staff or moderator 2004-12-04 21:42]


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Trudy Peters  Identity Verified
United States
Local time: 03:26
German to English
+ ...
Dollars and euros Dec 4, 2004

It's the other way around: US$1.00 = EUR 0.75.

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Madeleine MacRae Klintebo  Identity Verified
United Kingdom
Local time: 08:26
Swedish to English
+ ...
David is right Dec 4, 2004

Trudy Peters wrote:

It's the other way around: US$1.00 = EUR 0.75.


Trudy,
Sorry, but even though it's late at night and the mathematical part of my brain has clocked off, I think you've got it wrong.

I use SEK (Swedish kronor) and I can buy a dollar for less than 7 SEK these days. 1 euro will, however, cost me 9-10 SEK. Ergo, a euro is worth considerably more than a dollar.

David's point is valid:

*Why is TRADOS 20-25% cheaper in dollars? I ask this question as, for at least the last year, 1.0 euro = 0.75 dollars*

Regards,
Madeleine


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Harry Bornemann  Identity Verified
Mexico
English to German
+ ...
It is not cheaper in dollars Dec 4, 2004

It is cheaper when you live in the U.S.

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Ralf Lemster  Identity Verified
Germany
Local time: 09:26
English to German
+ ...
Re-calculate... Dec 4, 2004

Sorry, this is somewhat OT, but...
It's the other way around: US$1.00 = EUR 0.75.


Trudy,
Sorry, but even though it's late at night and the mathematical part of my brain has clocked off, I think you've got it wrong.

Trudy's right.

I use SEK (Swedish kronor) and I can buy a dollar for less than 7 SEK these days. 1 euro will, however, cost me 9-10 SEK. Ergo, a euro is worth considerably more than a dollar.

Correct, and that's why the euro is currently traded above USD 1.30 (turn it around, and 1 dollar buys around 77 euro cents).

Best regards,
Ralf


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Deborah Shannon  Identity Verified
Germany
Local time: 09:26
Member (2002)
German to English
How much is it in GBP? Dec 4, 2004

Harry_B wrote:

It is cheaper when you live in the U.S.


Does anyone happen to know? It's not clear what the pricing policy is for non-Euroland countries. I mailed this question to Trados directly a couple of weeks ago, but so far I haven't received a reply.


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Egon
English to German
Good question Dec 4, 2004

Deborah Shannon wrote:
How much is it in GBP?
...It's not clear what the pricing policy is for non-Euroland countries...

Billing by TRADOS will be in USD, EUR, JPY, GBP, or other currency depending on your location.
http://www.proz.com/?sp=tgb&campaign_id=3&package_id=&tgb_action=commit

I agree that the pricing policy is not clear, but I would bet that the price in GBP will be equivalent to the price in EUR..


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David Brown  Identity Verified
Spain
Local time: 09:26
Spanish to English
TOPIC STARTER
My mistake..It is the other way round Dec 4, 2004

David Brown wrote:

Why is TRADOS 20-25% cheaper in dollars. I ask this question as, for at least the last year, 1.0 euro = 0.75 dollars.

[Subject edited by staff or moderator 2004-12-04 21:42]


Sorry about the confusion which has detracted from my question..
(at todays exchange rate..695 USD = 512Euros), which was why the discrepancy?.


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David Brown  Identity Verified
Spain
Local time: 09:26
Spanish to English
TOPIC STARTER
Help I have confused myself!!! Dec 4, 2004

David Brown wrote:

Why is TRADOS 20-25% cheaper in dollars? I ask this question as, for at least the last year, 1.0 euro = 0.75 dollars.

[Subject edited by staff or moderator 2004-12-04 21:42]


695 euros=924USD and 479 GPB


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Ivan Eikås Skjøstad  Identity Verified
Norway
Local time: 09:26
Member (2002)
English to Norwegian
+ ...
The Trados people are too clever these days Dec 4, 2004

When I bought Trados FL 6 I wanted to buy the software in dollars...

...I went for the "early bird" campaign on their web site (not the group buying offer on Proz), and in a tricky way I ended up paying for the package in SEK...(In Norway we use NOK) even though the campaign promised the same price in "dollars or Euros".

I assume that I was ripped off, since when I found out the equivalent to what I actually paid in SEK against the real exchange rate my conclusion was that the only people that profited was the Trados people.

In Norway this is a breach against common marketing legislation, and this is one of the reasons I have waited to do any upgrades of Trados FL, since I am afraid I will get ripped off again when I pay for the software.

I hope that Trados stop using these methods during advertising of their software, since most translators operate accross countries, and are aware of the exchange rates. If they end up like I did I am sure that this will only lead to dissatisfaction.


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Ben Hickman  Identity Verified
Sweden
Local time: 09:26
Dutch to English
Good question! Dec 5, 2004

This is a very interesting question! Unfortunately I don't know much about economics, but I do have a few observations.

It's not just Trados...
If I go to my local grocery store in the Netherlands to buy a can of Pringles potato chips, I pay 1 EURO. (OK, Pringles are not really potato chips, but that's beside the point.) If I call my mother, who lives in a similar sized city in the U.S., and ask her to buy a can of Pringles on the same day, she pays 1 USD. (My brother in New York City will have to pay 2.50 USD, but that's obviously caused by other factors.) It would appear, that the value of products is somehow related to the purchasing power in the market where the product is sold.

Here, there, everywhere?
This pricing mystery also seems to be related to the availability of competing products or services. If there is competition, the price seems to be adapted to the market. This is the case with the Trados software, because I can order software from anywhere in the world. Location seems to affect this sometimes though, because if the only shop selling a cup of coffee near my office charges 2 Euros, I'm not going to walk a few kilometers to buy it for 1.50 Euros somewhere else. I'm still trying to figure out how this affects the price people are willing to pay for translation work. If I sell Dutch-to-English, the market price is largely determined by the 90% of translators for this combination who live in Belgium and the Netherlands (yes, I know there are also quite a few of you in England). The point is, there aren't very many of us living in the U.S. What are American companies willing to pay then? Do they pay 8 to 10 EURO cents, or are they only willing to pay 8 to 10 USD cents?

One thing is for sure: Trados has marketing experts that have looked at all the angles. They know that a translator living in Europe can't buy the software at U.S. prices. They may not know where you live, but they know where you work. The support and licensing websites are like Big Brother... they're watching you!


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Henry Dotterer
Local time: 03:26
SITE FOUNDER
It has to do with costs Dec 5, 2004

The issue is not as complex as it is being made to be. The main driver is costs. If you are a company selling a product in Europe, like TRADOS is, odds are you also have costs in Europe (an office, employees, support staff and phone lines, VAT, advertising, partners, etc.) And if you are in the euro-zone, these local costs are fixed in euros. To cover your euro costs you have two choices: (1) set a euro price for your product and fix it, or (2) allow your euro price to fluctuate according to your price in another currency, adjusted for some exchange rate. The first approach is preferred because with it you know your costs, your customers know their costs, and you are protected against currency fluctuation. In the second approach, there are few benefits, and you are completely exposed to risk from currency fluctuation. In competitive industries, almost no company can absorb those fluctuations (which may be as high as 52% over two years, as in euro-dollar exchange), so just about every firm with international costs chooses the first option.

If you have the type of business that does not have costs in multiple currencies, like most freelancers, you are in the desirable situation of not having to worry about all of this.


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David Brown  Identity Verified
Spain
Local time: 09:26
Spanish to English
TOPIC STARTER
TRADOS, costs and E-Commerce Dec 5, 2004

Henry wrote:

The issue is not as complex as it is being made to be. The main driver is costs. If you are a company selling a product in Europe, like TRADOS is, odds are you also have costs in Europe (an office, employees, support staff and phone lines, VAT, advertising, partners, etc.) And if you are in the euro-zone, these local costs are fixed in euros. To cover your euro costs you have two choices: (1) set a euro price for your product and fix it, or (2) allow your euro price to fluctuate according to your price in another currency, adjusted for some exchange rate. The first approach is preferred because with it you know your costs, your customers know their costs, and you are protected against currency fluctuation. In the second approach, there are few benefits, and you are completely exposed to risk from currency fluctuation. In competitive industries, almost no company can absorb those fluctuations (which may be as high as 52% over two years, as in euro-dollar exchange), so just about every firm with international costs chooses the first option.

If you have the type of business that does not have costs in multiple currencies, like most freelancers, you are in the desirable situation of not having to worry about all of this.

I think you may have a point here, but as TRADOS is a product mainly sold and delivered over the internet as well as technical support being available by this medium, should there is ahuge decrease in costs as compared to traditional commerce. I and another member have posed the question..How much does Trados cost in the UK sterling zone and am still waiting for someone to pass on this information.


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LindaMcM  Identity Verified
Local time: 09:26
Swedish to German
+ ...
What if... Dec 5, 2004

I pay in SEK (Swedish Krona) - do I have to pay 605 Euro (= 813 USD) or am I allowed to pay 605 USD (= 450 Euro) (which I would prefer)...? Look at the difference: 150 Euro (200 USD) - we all click the same buttons but some of us have to pay so much more for the same product, the same procedure...

And what if... I ask a friend living in the US to buy me Trados (as he can pay in USD) - would that be an acceptable procedure?

With kind regards, Linda


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Antje Harder  Identity Verified
Sweden
Local time: 09:26
Swedish to German
+ ...
Missing information on "real" prices in non-$ and non-EUR countries Dec 6, 2004

I'd like to second Linda and David: I'm really missing information on how much the "TRADOS Anniversary Sale" is going to cost me if I sign up (I live and work in Sweden).

There seems to be no way to find out about this without signing up - maybe not even then...

Whenever I buy something online I always can check the final sum I'm going to be charged before I finally confirm the transaction.
I'd really like to have a definite contract I can rely on.

Regards from Sweden
Antje


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