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American capitalism illustrated by the example of online event registration software

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The online event registration industry in the “software as a service” model is very developed, with the majority of players being located in the United States. It is known that there are no limits on the internet, however, the location of the software provider translates into the functionality of the systems and – what is important – the price level. This is best seen in the example of the largest company in the world in terms of revenues, offering online registration and payment services – Eventbrite.

How they do it in the US

Eventbrite is a huge company: it employs over 500 employees and has so far acquired over USD 330 million from investors in several investment rounds. It is a real hegemon on the market. Big can do more, so he uses his dominant position, applying different price levels depending on the market. For the Professional plan, which is basically an absolute basis for the event organizer, the pricing plans are as follows:

  • United States – 3.5% + $ 1.59 per paid ticket
  • Germany / France / Italy – 5.5% + 0.99 € per paid ticket
  • Great Britain – 6.5% + 0.49 £ per paid ticket
  • Spain – 9.0% per paid ticket

As you can see price discrepancy is shocking, especially considering that the company doesn’t apply the maximum commission threshold. For the same ticket worth 100 units, you have to pay USD 5.09 in the United States, EUR 6.49 in Germany, and EUR 9.00 in Spain! This is explicit and indisputable price discrimination.

There are no limits on the internet, but …

… there are also no sentiments. Money has the nationality. What counts is where you pay taxes. For the US economy, it is a much better situation when Eventbrite sells its services abroad at a higher price than in the country. Even on a small scale (in terms of the entire economy), but it increases the competitiveness of American entrepreneurs using the company’s services versus European competition.

The same applies to Apple products – Europeans pay much more for them than Americans. The more such examples, the more satisfied are the current tenants of the White House.

It seems that we are seeing the Wild West overseas again.

What can you do in such situations? Carefully compare prices and make rational choices. If the price is comparable, it is worth choosing European products and services.