The Anatomy of a Price Increase

InstallAware increased prices for customers in the Schengen Visa zone (most of Europe) by 30% on Monday, 17th of December 2012.

 

“Apple do it, so I am doing it too…”

 

My friend Harry Kelly (ComponentSource) cautioned me strongly against increasing prices in Europe. His thinking was that, unless there is some specific value-add for the European region, the increase cannot be justified. He provided credible rationale that companies who did charge higher prices indeed provided localized services or some other value-adds which justify the increase in cost.

 

Apple’s Cow Manure

 

Of course, no matter what the rationale, we all feel it’s basically greed. For example, Apple sells their tablets in Europe, at US prices –clearly these are as localized as their phones are. The phones they sell at a heavy markup. So why not the tablets? Apple faced stiff competition in the tablet space, so they just couldn’t jack up the prices. It’s all about the competition.

 

InstallAware’s Facts

 

What’s InstallAware’s rationale then? Is it some justification of greed? No, it is not. Our rationale for the recent price increase is that our costs of doing business in Europe are getting exponentially higher. How/why? Take a hint from the opening line of this blog.

 

My First Schengen Visa

 

I must have gotten my first Schengen visa in 2003. I was unemployed (erm, an entrepreneur) back then. I had no work history and no assets. I was trying to get to Cologne to attend my first European shareware conference. I suffered countless long waits in line, many an early morning, in front of the German embassy in Ankara. To say these waits were undignified would be an understatement. Having received college education in the US, I had grown accustomed to a basic semblance of human rights. All of these were being unilaterally violated by the treatment of visa applicants at the German embassy in Ankara.

 

I did eventually get my visa issued. It was valid for one week only! This visa was certainly the shortest I have ever been issued. Talk of freedom of travel!

 

My Subsequent Schengen Visa’s

 

My first morning in line outside the German embassy, I’d had a very unnerving encounter. A stranger had shown up right next to me and started volunteering information on how to get visas for travel to Germany. Usually I get suspicious when information is being volunteered in this manner…

 

… so while my mind was spinning around about the implications of what I was hearing from this strange volunteer of information, I was completely unprepared for the eventuality that his predictions would turn out to be entirely accurate. He said that I’d get my first visa for a week. And then the next one would be issued for two weeks. Then the next one for a month, assuming I never overstayed my visa. And then two months or three months, after which, six months – or a full year if I was lucky.

 

Now at this point, I already had a ten year US visa on my passport. So it all was a bit too  much to take in. I was in denial about what I was being told.

 

In fact, the visas that I would be eventually issued over the years followed this exact same pattern. So much so, that it would be in 2011 when I was finally issued a full year’s visa.

 

By which point, of course, I was no longer unemployed – or penniless. So it did not come as a surprise to me, and when I applied for my latest Schengen visa recently, just weeks ago, I was expecting a 2 year, or dare I say, 5 year visa!

 

European Racism

 

My latest Schengen visa, which was issued less than a month ago, is valid for three weeks, and it is a single entry visa. And the maximum stay allowed is a total of ten days!

 

This visa is utterly non-usable. This visa grounds me and restricts my freedom of travel in Europe completely. How come I’ve ended up being a persona-non-grata in Europe?

 

I cannot come up with any other rationale for it other than European racism. Sure, in 2003, Germany had plenty of reasons to be concerned about an unemployed visitor. But in 2012, Holland has absolutely no reasons to be concerned about my visit. If anything, they should be trying to encourage me to stay longer, so I can spend my money in their nice country.

 

We did appeal to the Dutch embassy in Ankara. Our appeal was rejected. The utter rape of the anonymous information volunteer’s pattern was final!

 

InstallAware R&D is Based in Turkey

 

Ever since our founding in 2003, InstallAware R&D has been based out of Ankara, Turkey.

 

If the founder of InstallAware has trouble getting Schengen visas, imagine what InstallAware employees must go through trying to get Schengen visas?

 

The “fiat” cost of a visa is absolutely negligible compared to the opportunity cost and especially the loss of time with a special emphasis on the indignities laid on the applicant.

 

Our accountants have worked this cost out to be about 30% of our net costs. Which aligns, rather nicely, with InstallAware’s switch to EUR based pricing in Europe.

 

You May Appeal!

 

Unhappy that you have to pay an extra 30% just because you’re based in Europe? Somehow am I not surprised by your reaction!

 

Because we’re not racist, we’ll issue you a 30% discount coupon if you:

 

1)      Call or fax the Dutch embassy in Ankara, and let them know you are calling in connection with the subject matter of this blog.

 

OR

 

2)      Call or fax your EU representative, asking them to terminate their racist practice of limiting Turkish freedom of travel in Europe.

 

AND

 

Let them know that a global company with R&D headquartered in Turkey has been forced to pass on Schengen visa costs to you, their customer in Europe.

 

For your convenience, the phone and fax numbers of the visa department of the Dutch embassy in Ankara are provided below:

 

Voice: +90 312 409 17 50 (GMT+2 13.30- 16.30 hours only)

Fax: +90 312 409 18 91

 

Provide us with a recording of the phone conversation or a copy of the fax (including the transmission sent confirmation) and we will provide you with a 30% discount, offsetting the effects of our EUR based pricing in your region.

 

InstallAware will honor this discount on direct orders as well as reseller orders.

 

Thank you for helping us make the world a better place!

 

PS: Please do not be tempted to circumvent our pricing through proxies etc. InstallAware has to decline orders from companies/individuals based in the Schengen visa zone that have circumvented our geo-IP targeting.

12 Replies to “The Anatomy of a Price Increase”

  1. Borders. What larks, eh? Back in the 1970s a friend and me took our motorbikes to north Africa. I had a BMW R75/7 and my mate had a Moto Guzzi 850. We took the ferry to Tangier and spent a couple of weeks riding around Morocco. In the three months we were in the north we crossed into Algeria and then through to Egypt where we turned south and west into Sudan and across to Mali and the west coast where we headed back to Tangier and back home via Spain. Every border crossing was tough. We never paid a single bribe and were thankful we had all the necessary carnets to get our bikes. One crossing was ugly, leaving Mali. The guards wanted money and lots of it. In politest Scotch accent my mate Alex told them to you-know-what.

    They threatened us with arrest. We found a nice spot to put up our tents for the night and cooked our meal. It must have smelt good because the guards came over and stood around. We invited them to sit with us and we shared the meal with them. They went back to their brick building. The next morning we went to the border post again. This time, their smiles told us eveything. One of the guards washed our bikes and the other nodded approvingly at our papers. As we got ready to ride through Alex stopped and gave them some of the food he had and I slipped a few dollars between some of packets of soup.

    If the European Union could conduct itself so amicably as well things would be so much nicer.

  2. I disagree that nothing will change when you make an effort at contact. Quite the contrary, I believe these institutions need to be made AWARE that their monkeying around is having real consequences – real consequences that are affecting their OWN population – that they are meant to serve in the first place.

    Clearly, non-EU citizens have no hope of ever bringing upon this awareness on your – allegedly undemocratic – states, when we have trouble getting visas in the first place! The responsibility does fall squarely on your own shoulders.

    You do have a way out of the price increase. Last time InstallAware upped prices in 2008 for the EURO zone, this price increase was completely discretionary and had no “out” clause. One could say that InstallAware is mellowing out, in that there is an “out” clause now. We pulled an Apple on you in 2008, that’s not what we’re doing now.

    Does it still feel like an unnecessary hassle to have to go through the complaint process for the 30% (by now, 32%) discount? I hate to have it this way, but that feeling is entirely intentional. The rage that shines through your post is only a brief hint of what visa applicants at InstallAware’s R&D HQ experience during – and especially after – the visa process. Your knowledge that it is something that could be avoided entirely, only adds more fuel to the fire. Yes, this is an entirely artificial, seemingly pointless bureaucratic hindrance. Again, that’s just how it feels when you’re applying for the visa. I’m sorry, but there’s just no other way I can conceive of, to get the point across.

    Or, you can just pay your way out of the Schengen bureaucracy. If you choose to do that, please do so in the awareness that just “buying” a visa like this is not possible, no matter what the cost. Even being able to pay your way out of the bureaucracy for a 32% surcharge is a luxury that you are being afforded, that we simply don’t have.

  3. Again, this is not punishing innocent people for their government – but a cry for help! A cry to the people of those governments to go to their local representatives and do whatever they can for us. It is a cry for help, plain and simple. Again, even if you do nothing, the EUR based pricing helps offset our costs…

  4. Hello Customers/ Potential Customers,

    I am righting this complaint as InstallAware is the BEST Installer out there
    and because they offer deals to past customers and competitive upgrades for
    34% 50%. and I have used it for years so don’t blame them if they want to
    raise or lower their prices. If you want the best Buy it!!!
    Jeff Link

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