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
actually, I can't see the logic here - a download here or in the States, where's the difference for Adobe?
Laurenz
