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The difference is the size and cost of the organization in Europe that
sells the products and go around to the retailers and provide service
(ie push the product, talk it up, arrange demos etc.).
Say in Europe Adobe has 10 employees and they cost Adobe $100
each to maintain.(pay, insurance, auto costs etc). Let say Adobe
sells 20 CS3 in Europe euro nations.
10 employees x 100 = $1000 cost divided by 20 CS3 means to break even
Adobe has to get $200 per CS3 sold.
In the US Adobe has 50 employees which cost $200 each to maintain and they
sell 500 CS3 units. 50 employees times $200 each = $10,000 cost divided by 500
CS3 units =
$20 per unit to break even.
So in the US Adobe needs $20.00 per unit to break even and in Euro Europe
Adobe needs $200.00 to break even.
Or lets say Adobe has no reps in Europe but sends reps and photographer to
push the products in Europe. Then they have not only pay the employees but pay
for airline tickets ( price of fuel), hotels and food. Also what is considered a
bribe in the US is the normal way some people/cultures around the world do
business. The cost of doing business is different in different parts of the
world.
Roy
In a message dated 8/3/2008 3:44:44 P.M. Eastern Daylight Time,
info@xxxxxxxxxxxxxxx writes:
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