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. 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 Â£18), I would actually only get about Â£12. To keep that in proportion, that is four pints at my local. 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.
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.
All the best,