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Bitter Pill for Salesforce Clients?

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DateMonday, November 08, 2010

Bitter Pill for Salesforce Clients? 

Cloud CRM Provider Charging its Euro Zone Clients Upto 50% More Than US and UK Customers!



SALESFORCE_Tim_Barker.jpgFor a global company selling product and services across multiple currency zones, it is only to be expected to see pricing differences advertised as a result of currency fluctuations.



But even so, it may come as quite a shock for the European customers of cloud based CRM company to learn on the eve of Cloudforce 2010 in Paris, that they are paying between 37% and a whopping 51% more for exactly the same products available to their United Kingdom and United States contemporaries.



According to figures taken from their US, UK, and European websites,'s European 'Basic Edition' subscribers can expect to pay up to € 9.19  per month per licence (€110 per year) more. Worst still, if they subscribe to Enterprise edition, which claims is their most popular package, Euro subscribers will pay €45.00 a month more, or €551.00 annually  for each and every user under their contract.



In a statement to VP, EMEA Marketing, Tim Barker (pictured) attempts to pass off the huge price difference simply as the cost of doing business in Europe. He said: "Everything from your last windows upgrade to your favorite iTunes song will cost more in Europe compared to the US. The cost of doing business in Europe is higher.”


Barker's claim could be founded, however, their refusal to comment further when we asked the company to specify the "costs" which would lead to such a big hike in their EU prices, leads us to suspect it cannot be substantiated.



What can be deduced from's latest financial reports is that operating expenditure at the company has indeed increased (although the figures are not broken down geographically), the majority of which is incurred by "Marketing Activities". Interestingly, the company also states currency exchange losses of $4.5m between fiscal 2008 and 2010, although the it has recouped €4.3m with two quarters yet to be reported in fiscal 2011.



The company still makes significant gross profits of 81% (UP from 76% in 2008) and is on course to generate an impressive $1.5billion dollars in revenue this fiscal year (2011).





Here are the comparisons:



















Prices taken from's European, United Kingdom and United States websites on Wednesday 3rd November 2010.





Do You Know of Similar Pricing Models? Please Let Us Know







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