Scrivener price increase on the horizon

Hi,

Just a heads-up to let everyone know that it looks as though I am going to have to put up the price of Scrivener a little. Not by much - the price will remain within the band I originally laid down back when we talking about prices in the beta days.

The price will increase from $34.99 to $39.95.

Please don’t shout at me. :slight_smile: I feel bad after Scrivener has been in magazines recently at the low price, but the new price won’t kick in for a week or two - until Scrivener 1.1 comes out. Then I’ll probably put a warning on the product page for a couple of weeks before the actual increase.

The reason I’m going to have to do this is that, ironically, sales have been better than I thought. Which means that within the next month, I’m going to start having to pay VAT to the good old UK government (tax breaks for big busnesses and the rich! Penalise small businesses and those who have doodley-squat!). I didn’t think I’d have to face this for another three or four months, but basically, this means that of every sale in the EU, I would lose 17.5% to VAT and another 14% to eSellerate (who run the web store). Given that the dollar-pound exchange rate is always set at about 2:1, this means that on every $35 sale (= about £18), I would actually only get about £12. To keep that in proportion, that is four pints at my local. :slight_smile: Adding $5 to the price of Scrivener will offset this so that the profit on each copy stays the same.

Yes, yes, I know you couldn’t give two hoots about my profit, but I just wanted to show that I’m not being a mercenary pig here - the profit on each copy is low. The alternative - which is what a lot of companies do - is to “hide” the VAT. That is, any EU customer who goes to buy the product at $34.99 suddenly sees that they’ve got an extra 17.5% VAT bunged on the top. But as a customer, I always hate this, and as a UK-based company I don’t want to do that to EU customers.

Does this mean that US customers are therefore subsidising everyone else? Um. You could make that argument. But Scrivener is underpriced anyway - and still will be, at less than $40 - and if it really bugs you, I suggest you go and look at all the hardware prices on Apple US and then on Apple UK, then use xe.com/ucc to do some price conversions - you’ll see how much we normally have to pay more than you guys!

When the new price comes in I will also try to implement an official student discount policy of 10-12%, so that students can still buy at the old price. Maybe. Though $40 is still cheap. :slight_smile:

Anyway, feel free to tell me what a capitalist git I am now. I figured it was better to be absolutely frank and open about why I am going to have to put up the price, though. Not very professional, probably, but hey. :stuck_out_tongue:

All the best,
Keith

$ 39.95 is still a bargain for what Scrivener is now, and for your daily efforts to make it better and better. You don’t have to justify yourself: Scrivener is yours, and you are free to ask whatever you want. If Scrivener were mine, I think I would ask at least 49.95: and not in dollars, but in euro’s.

Congratulations on your sales success! :slight_smile: :slight_smile: :slight_smile:

I wouldn’t worry about the increase - it’s not a massive leap (still within my personal “not-too-expensive-so-might-as-well-risk-it” threshold, for example), and prices often turn out to be different to those mentioned in magazines anyway. Certainly, I would cheerfully have paid your forthcoming price when I bought Scrivener two days into my trial period - and now that I’ve been using the software for a good couple of months (and have set this forum as the home page on my browser!) I would consider it money well spent if I had paid much more.

May your success continue apace :slight_smile:

I agree with all the above. Scrivener at the new price is still a steal! Oh, and I really resent it when the VAT is sneakily added at the checkout.
cw

I’ve always thought Scr. was underpriced. You deserve to make a fair profit from your own work!! Thanks for being the ethical guy you always are and letting us know!

Alexandria

I think Scrivener definitely worths the new price, if you consider the functions, the forum (a real ‘customer care’ service, indeed…).
I’ve already bought it, but I’d buy it even at something more… (yeah, my family name it’s Rockefeller :smiley: )
best,
johnz

Sounds good to me. You’d have to be stingy indeed to protest those 5 bucks.

Agreed. Hike away! I’m sorry to hear that eSellerate charges so much, that’s almost a racket!

Is there any alternative?

Kagi is an alternative, but really, eSellerate are pretty good. They don’t just handle the web store, but also the whole serial number code is theirs. If I moved to another provider, I’d have to port the serial numbers - probably needing to issue all my users with different serial numbers. Yikes. That said, looking at Kagi, it does look like they take a lot less money… Hmm.

Talking about eSellerate: They leave various files (even as a framework) on the machine, even after the software is purchased. This is … hm … unusual. :blush:

Keith re Kagi: There are two ways to increase profit. Increase prices or reduce costs. Either way I think we all realise you have a right to reasonable profits (you are the best software developer ever - the software is not bad either).

If you were really nasty you would do both.

Yes! go Kagi. then if later on you really need to up the price by a few dollars, you’ve got it up your sleeve.

:confused:

39,95 is still low for this wonderful application.
I am glad to hear that Scrivener is such a success.
All the best to you Keith,
R.

Like I say, the price hike has nothing to do with eSellerate and everything to do with impending VAT. :slight_smile:

Jon - any software that uses something like eSellerate or Kagi will need to use a framework. The eSellerate framework is tiny and has nothing to do with the actual purchase - it is the framework that checks the registration code to see if it is valid. Obviously that needs checking every time you launch Scrivener.

As for Kagi… Yes, it would reduce fees, by the look of it, from 13-14% to something like 8%, which would be nice. eSellerate have been good, though. The trouble is that you can test out eSellerate’s service before buying into them, whereas, as far as I can see, with Kagi you have to register with them before you can see whether or not they are any good. Mellel and others use Kagi, though, so I am guessing they are pretty good. eSellerate have a great interface and make everything very easy, and I have had great support - and users who have had problem making a sale receive a response from eSellerate support very quickly - so I am a little loathe to migrate.

Best,
Keith

No problem here about that. After all, we owe you something for our independence. But seriously, how can you stand to let the UK take 2/3rds of your profits, just to keep HM’s corgis and ponies in comfort? Maybe you should move offshore somewhere. The Caymans have a very nice climate.

I’d suggest doing both. You deserve a healthy profit from your hard work. 39.95 is extremely reasonable, and use Kagi if you can and pay less. Make more. More is good. And you are still pricing Scr. at an extremely accessible rate!

The price hike is justifiable and of course, those of us who use Scrivener know it’s worth far more. I do hope Keith can keep it under US$40, though, because I worry that there’s a psychological barrier somewhere around that number that might discourage newbies from trying it out. I know the trial demo is fully functional and should overcome that initial resistance, but if, way back when I first heard about Scrivener, it had cost over, say, $50, I might have been reluctant even to give it a try. And wouldn’t that have been a shame!
Most of us here can now bask in our $5 early adopter bonus.

Dear Keith, you should not feel bad about the new pricing. You are offering Scrivener at a great price even then. I’m really glad I was able to lay down the money for it a short while ago. And in relation to the work you put into the development you are still being very modest anyway.

I just wanted to point something out, when I placed my order I had to pay an additional 19% VAT at esellerate. You said you wanted to avoid that for your European customers. I think you might want to look into that with them maybe. I am from Germany so maybe it was due to the difference in the percentage, I really do not know. I payed about 32 Euros I think. What I actually want to say is, they already add a percentage (at least for customers from Germany) so maybe there is something you want to clarify with them in order to make the pricing even more transparent. :slight_smile:

thank you for giving so much for your Scrivener users…

cheers :slight_smile:

FYI - I’m UK based and was charged VAT @ 17.5% - so it is being added at checkout at present and you may have to pass that to the government.
Anyway it’s still ridiculously cheap and you should really up it more, I’m sure some people are put off by low prices.

In-ter-esting… I had no idea that was happening. I knew it happened in a couple of US states but I didn’t know it was happening in Europe. I’ll check with eSellerate an my accountant. If eSellerate already have the system in place whereby the VAT is going to the appropriate government, then presumably I won’t have to pay another 17.5%, in which case all this is for nothing and I may not have to put the price up at all. I’ll check with eSellerate.

You can tell I was a born businessman, can’t you? D’oh!

Keith

KB,

I’m a (portuguese) lawyer but no expert in fiscal law. In any event I recall that when someone is selling to a different EU country the VAT applicable can be:

  • 0% (under certain circumstances)
  • Tax rate of the seller (up to a certain yearly amount)
  • Tax rate of the buyer (above the said threshold)

Probably for tax purposes eSellerate is the “seller”, collecting and forwarding the tax to the appropriate Government.

If VAT is being applicable by eSellerate, do you receive that amount from them? (For your posts, I guess not).

Pedro