I'd say especially when it's not costing Adobe anything to cancel your subscription, it's just a money grab.
There are some exceptions where a fee is ok like when it's actually putting the business out financially, like Garmin & Iridium satellite service agreements, Garmin has little choice...but clearly not the case for Adobe
The whole idea of offering annual pricing is that the income stream is more consistent, so the price can be lower. It does hurt Adobe (not much relative to their income, but still some) to have that income not materialize.
If you're not happy with a cancellation fee, that's what the monthly pricing is for—you pay more month to month but can cancel any time. It's a very normal trade-off. The only real alternatives Adobe has to a cancellation fee are to only offer monthly pricing or forbid cancelling an annual contact at all.
A fee is acceptable, if the consumer agrees to it, adobe wants people to pay their agreed on contract, but offer people a discount of 50% of their remaining obligation.
This seems pretty fair to me, when you signed up for the contract, those purchases figure into their operations.
Reverse the paradigm, if they cancelled providing you these services, would you expect a refund, or would it be a money grab to expect to get your money back when they violated the terms of the agreement?
If a user signs up for a year contract, the business has certainty of future income. The business gives a discount for assurance of that future revenue.
If the user cancels early, the cost is the lose of that future revenue on the balance sheet - and this does influence the business.
petee|4 years ago
There are some exceptions where a fee is ok like when it's actually putting the business out financially, like Garmin & Iridium satellite service agreements, Garmin has little choice...but clearly not the case for Adobe
lolinder|4 years ago
If you're not happy with a cancellation fee, that's what the monthly pricing is for—you pay more month to month but can cancel any time. It's a very normal trade-off. The only real alternatives Adobe has to a cancellation fee are to only offer monthly pricing or forbid cancelling an annual contact at all.
Meph504|4 years ago
This seems pretty fair to me, when you signed up for the contract, those purchases figure into their operations.
Reverse the paradigm, if they cancelled providing you these services, would you expect a refund, or would it be a money grab to expect to get your money back when they violated the terms of the agreement?
legostormtroopr|4 years ago
If a user signs up for a year contract, the business has certainty of future income. The business gives a discount for assurance of that future revenue.
If the user cancels early, the cost is the lose of that future revenue on the balance sheet - and this does influence the business.