Thread: Festool and price fixing

I believe that when you order through Festool's website it gets fulfilled by one of their dealers - possibly that you nominate?

Since the discounting stopped, I've discovered that one place in Melbourne (Tool House in Dandenong) provides a 2 year extended warranty, which to me is worth more than the 10% or so discount you used to be able to get. Perhaps a local shop will have something similar?

Festool have just been introduced or maybe I should say upped their presence at Total Tools so could be worth while going there and having a chat.

The price where delivery becomes free will vary between dealers. Some items may have free delivery. As an example Ideal Tools have free delivery from $250, or this http://justtools.com.au/festool-syst...age-box-497694 from Just Tools is labeled as free freight.
Where you may get a discount, is if you purchase other tools from a dealer at the same time, eg clamps, hammers, screwdrivers or non Festool line items. It costs nothing to ask and the worst result is refusal.

The correct term is "Resale Price Maintenance"

Hi there,

It is similar to Miele. What happens is the dealers are "franchised" to Festool. Festool Australia may set the price that the dealers are allowed to charge. I think it sits on the edge of anti competitive behaviour, but its not illegal as far as I know. It's also the reason we pay so much. Festool Australia will set the price at the maximum level the market will bear.

Using Miele as an example I can source same voltage appliances out of the U.K. delivered to my door for about 40% less.

Graham

Festool have an agreement with the ACCC, authorising minimum prices on their tools.

“The ACCC considers that on balance the likely public benefit resulting from the expected increase in retail services will outweigh the clear, but limited, detriment resulting from some customers facing a higher retail price for Festool products,” ACCC Chairman Rod Sims said.

https://www.accc.gov.au/media-release/accc-authorises-minimum-retail-prices-on-festool-power-tools

Runs until 31 December 2018.

Originally Posted by Graham99

It is similar to Miele.

Miele drive me crazy, i install there stuff almost on a weekly basis and always one often two of the appliances are ex display with bits missing butchered brackets and so on.

Either they update the range every six months or the retailers realise the profits are poor and it's moved on.

So in summary, reading the above, Festool prices are allowed to be uncompetitive because it's supposed to promote a superior customer support and sales experience.

I used Miele as an example earlier. Whilst it is highly priced, there are clinics etc on its use. My question to you all, apart from the wallet rape, has the Festool pre sales and post sales experience been better than Makita for example. Do Festool do clinics on their products where people can see what the tools can do, and potentially try before they buy?

Yes, my post sales and pre sales experience has been better than most. and yes they do clinics presale, where you can try the tools hands on before you buy.
I don't know why, but we get these gripes about Festool every so often and we get the same answers. A search of the forums can be very fruitful in this case. Ultimately, you can import the tools yourself, remembering you pay GST on everything you bring in now, or use the services of someone who will bring the tools in for you. (Remember you will have no warranty buying this way and I'd be sure you're quoted GST component and find out just how long the import will take. You may have to wait months.)

GST under $1000 aus is not applied No Joe = No change at the ATO

Originally Posted by Pac man

GST under $1000 aus is not applied No Joe = No change at the ATO

This article from August this year suggests there could be GST upon overseas purchased after July 2017.

http://www.gizmodo.com.au/2015/08/al...nt-gst-charge/

That may or may not happen, and while I'm not a Festool user, I struggle with the HUGE DISPARITY between North American and UE to that which we are charged in Australian and is IMHO criminal.....
Personally, in buying from the USA, I have saved between 40 to 60% on the local cost which includes delivery, exchange fees and credit card fees.....
I only buy one off's or bits & pieces not quantity, carton lots or container loads and still with the Aussie Dollar so low, it's the same deal...
It just doesn't add up....Just my penny's worth!! cheers, crowie

How do you get on with voltage buying from the US? it would be a pain if you needed to get a transformer to run the domino you just got.

Further comments and thanks for the replies:

* I checked with my local Festool dealer (Total Tools). They do not have the MFT3 in stock, but will order it for me. They will not discount, nor are they prepared to sell several items on the same order, so I may receive a discount on the other item/s.

* Since Total Tools will only order the MFT3 on special order, that puts paid to the nonsensical suggestion that some kind of specialised knowledge/service can only be provided by a Festool dealer for their products. No one at Total Tools (AFAIK) has a clue what the MFT3 is (I bet they will tomorrow though). I do not call this "superior sales and support".

* I am aware of the rort introduced by Rod Sims. Rod Sims does not act for the consumer. He acts for big business.

* Frankly I am stunned and disgusted this whole thing. Festool for finding ways to subvert the law and gouge consumers and the ACCC for acting in complicity with Festool.

It surprises me that there has not been a similar Asian copy of the domino at a reasonable price.

Patents etc have been worked around before to fill a demand especially when the alternative has a high margin. Perhaps the demand is not there at this time.