Thread: Festool Pricing is very high

Festool are no different to any other premium product that goes worldwide. Quality chainsaws like Stihl and Husqvarna are the same.

Often the price which Australian retailers can buy these premium products is greater that US retail prices. European prices usually only differ from Ozzy prices by the cost of shipping, and maintaining a lower turnover distribution and service chain, that has higher unit cost, but should not double the price of such goods.

No manufacturer wants to lose the huge US market so they are prepared to take very small margins or losses to maintain market share. But the company still needs to turn a profit so prices to the rest of the world to recover this profit/loss are set that effectively subsidize the US market.

thats true bob l but it really stinks ,although with chain saws you can get them from the usa at a great price , some of the festools were cheaper in the uk , some sellers post rates are ok some its not worth the trouble . the festool is a good thing generally , cheers Bob

The fact that the Australian distributor of Festool products forbids its retailers from discounting must also be a factor.
I would have thought that this was illegal and in contravention of fair trading laws.

Originally Posted by Isaac Hunt

The fact that the Australian distributor of Festool products forbids its retailers from discounting must also be a factor.
I would have thought that this was illegal and in contravention of fair trading laws.

Apple do exactly the same thing - you'll never see discounted iPhones or iPads. I think this practice was challenged with Apple and nothing illegal was found.

You can buy the Domino in Ireland for 773 Euro which is $1046 Australian.
Still four hundred dollars cheaper and Ireland is a smaller market than Australia.This would be 240 volt too.
We are being ripped off for sure.

When looking at power tools remember that America has a different voltage to Australia so the tools are made for that market.
I believe that the retailer has very little margin on Festool, and because they may not have a big turn over will discount very little.
When I bought my Festool gear I got a good price due to a retailer trying to clear stock. One item they could not locate price for on system so sold it at probably half price. b tool shop keenly priced saw and guide. Display model was the only one they had but that has not been a problem. c another tool shop had a good price on a kit I wanted.
So I have bought stuff at three different shops and feel I have got a good price compared to "recommended retail price".
The other ways to get a good price can be as simple as asking, or buy additional stuff at the same time, eg. sanding sheets with a sander, drill bits with a drill, router bits for a router. You might want drill bits and even if you purchase a sander the retailer may be able to give you a better price.
At the end of the day the retailer needs to make a profit to stay in business.
If you get a good price then you will be happy . Chances are if it is a Festool product you will be very happy with the product long after you have purchased it.

Originally Posted by Isaac Hunt

You can buy the Domino in Ireland for 773 Euro which is $1046 Australian.
Still four hundred dollars cheaper and Ireland is a smaller market than Australia.This would be 240 volt too.
We are being ripped off for sure.

So have you put your order in or are you going to keep surfing the net looking for cheaper options and bleat about the local prices all the time.

Remember at the end of the day you may be putting someone out of business and when you want something they had then you will complain again.

Buy Local Support Local

Originally Posted by Isaac Hunt

You can buy the Domino in Ireland for 773 Euro which is $1046 Australian.
Still four hundred dollars cheaper and Ireland is a smaller market than Australia.

Not so - Ireland is considered to be in one of the worlds biggest markets ( EU ) and on top of that it has a basket case economy where retailers are battling to sell shoelaces. I'll bet the Greek prices will be pretty good too but the Norwegian price won't.

Would be nice to have cheaper prices in Australia. All my pieces cost a fair bit of money but I'm glad I purchased them here rather than outside the country. For starters they all comply to Australian Standards, all are/were covered by guarantee. All can be serviced here, no need tor power converters or plug changes, etc.

I'm happy with what I have and the convenience. I for one am sick and tired of people whinging about prices in Australia. Yes it would be nice to have things cheaper but they aren't yet all people seem to do is blame the sellers. As others have said in posts in these forums. "Most tool sellers are working on a maximum markup of 30% and less."

Now that's really ripping the pubic off isn't it. NOT! On top of that most stock was probably purchased during the past 12 mth when the dollar was much lower than now. They have to hold stock, accessories, and often parts, so you can buy what you want, when you want it, without going spare or chuck a tantrum because you want it now. Not only that they have to pay freight, insurance, gst, import duties, supply guarantee and more.

As for the population bit and prices according to population.
USA 311 million
UK INCLUDES Ireland 64 million
AU 22 million

Of course we'll be expected to pay more as we don't have the population to create the turnover needed to keep a business viable. Higher population, higher turnover = lower sale price.

It's common knowledge there are 2 ways to go in business:

• Low profit high turnover
• Low turnover high price

Darky

Originally Posted by Jim Carroll

So have you put your order in or are you going to keep surfing the net looking for cheaper options and bleat about the local prices all the time.

Remember at the end of the day you may be putting someone out of business and when you want something they had then you will complain again.

Buy Local Support Local

WELL SAID JIM

Originally Posted by Jim Carroll

So have you put your order in or are you going to keep surfing the net looking for cheaper options and bleat about the local prices all the time.

Remember at the end of the day you may be putting someone out of business and when you want something they had then you will complain again.

Buy Local Support Local

Well I will keep bleating.
I run a fine furniture business and power tools are one of my business costs.I have no problem paying more for a product from a local supplier.I am quie happy to pay ten or twenty percent more than my overseas competitors [I do export].I am not happy about paying fifty to one hundred percent more however.
So if it is choice betweeen me going out of business or Australian Festool suppliers I am afraid I will take my side every time and I will buy these tools from overseas.
It seems a 240 volt to 110 volt stepdown transformer will be one of the best investments I can make.They do not cost much.

Originally Posted by Darklord

As for the population bit and prices according to population.
USA 311 million
UK INCLUDES Ireland 64 million
AU 22 [B] million

You are right - it's about turnover but this is not directly related to population it's also related to consumer attitudes ie how many products you are prepared to go into hock to purchase. Many Americans own 3 cars a motorcycle or two and a couple of boats, jet skis and a shed full of tools they rarely use etc.

Another really important are that prices are also set to mitigate against future loss of sales if specific market attitudes change.

Ireland is not seen as a part of the UK but as part of the EU market (ie >500 million people or more than the US) but their prices are still greater than the US. The difference is that many people in the US are prepared to mortgage their homes and max their credit cards out multiple times to buy stuff they don't use. Europeans are not prepared to do that. Producers are terrified that US consumers will develop European frugality which will lead to sales slumps in the US so they keep prices artificially low (often below cost) to maintain turnover. One group that are laughing all the way to the bank are the Chinese because their production costs are so low.

Originally Posted by Isaac Hunt

It seems a 240 volt to 110 volt stepdown transformer will be one of the best investments I can make.They do not cost much.

My brother did that - bought a container load of tools back from the US after living there for 10 years. He persisted for about a year using the power hand tools and then gave up and went out and bought 240V version. I have heard of people even wiring their shop for 110V but wouldn't you know it there's never a spare outlet when you need it

Every time someone asserts we are being ripped off with Festool equipment here in Aus, I want to express the following but usually hold back. But today I will, so please consider.....

I'm not sure why Festool is picked on so much with respect to:

1. Prices of its product in general;
2. How it compares to prices in other countries.

My thoughts.....

These are some of the items I purchase for my business:

• Computer Hardware
• General Tools
• Materials
• Consumables
• Services

This is what I could say about their cost.

• Computer Hardware and Software - Devalued within 6 months to 3 years - then worth virtually nothing.
• Tools - Good tools cost more, cheap tools are cheap.
• Materials - Stuff seems so expensive and hard to get these days.
• Office Consumables - Hugely expensive - seem to get little value for my buck.
• Services - Everyone wants to charge a fortune to do very little these days, seems like nobody wants to quote or even do a job unless its for thousands.

I can only wish the computer hardware and software I invest in for my business only costs (per annum) what it would cost to fit out a productive workshop with Festool gear.

This is what I could say about how they compare to overseas equivalents.

• Computer Hardware and Software - Seems a lot cheaper overseas.
  
• General Tools - Good tools seem less expensive, cheap tools look ridiculously cheap.
• Materials - Seems a lot cheaper overseas
• Office Consumables - Seems a lot lot cheaper overseas
• Services - Seems a lot cheaper overseas - people want the work.

This is what happens if I bring in something from overseas and it needs support:

• Computer Hardware and Software - Local distributors won't help, warranty may be invalid.
• General Tools - Local distributors won't help, warranty may be invalid.
• Materials - N/A.
• Office Consumables - Local distributors won't help.
• Services - N/A, or hard to communicate issues and get resolutions.

But then why should the local distributor or retailer assist with a product purchased overseas.

P.S. I wish people would be a bit more careful throwing around rumours, old info, or repeating misinformation; which is not very accurate or factual. You may be misinforming readers and damaging others businesses, peoples livelihoods, and fellow consumers options.