Thread: Are they Price Fixing The three leading Tool suppliers.

Try this mob. Https://www.toolspareparts.com.au/

ive had a lot of good dealings with them. Prices are reasonable and quick turnaround.

Originally Posted by riverbuilder

Try this mob. Https://www.toolspareparts.com.au/

ive had a lot of good dealings with them. Prices are reasonable and quick turnaround.

Thanks RB,

But my main point is it seemed “odd” that they were all running the same price.
I was really only in the mood to run in, get a new belt sander and get back to what pays.

O well my loss there gain.

Cheers Matt

Oh come on Matt, take the tin foil off

best bet would be that Makita have a RRP (unpublished on the Makita site) and the retailers have all just stuck to using the list price to maximize prices.

For a belt sander buy the cheapest one and call the whole unit disposable

Originally Posted by Aussiephil

Oh come on Matt, take the tin foil off

best bet would be that Makita have a RRP (unpublished on the Makita site) and the retailers have all just stuck to using the list price to maximize prices.

For a belt sander buy the cheapest one and call the whole unit disposable

Ye maybe Phil , I was thinking about have the tin foil hat printed [emoji57] tho.

Na cheap doesn’t do it for me on site,I’m happy with Makita not loyal tho.

I probably be over it by tomorrow lol.

Cheers Matt.

I recall your rules being far less accommodating there to distributors or brands dictating price, but in the US, they would do something like mandate an advertised price. Sellers can sell for more, but not less. What triggered that? Internet only drop shipping companies and then follow-on threats from overpriced box stores who did the same thing to local stores when they got in business, but now don't like it when they're trying to grow margin instead of market share.

Some of the larger makers also cater to the box stores by changing the part/ID numbers for tools or making insignificant changes so that you can't do comparison shopping.

Mergers of accommodating brands has pretty much killed the rest (that is, if you had a brand that was fine with drop shippers charging whatever they wanted, that brand was a target to be purchased by someone else wanting to maintain advertised price). Sellers in the US can force mandatory minimum sale prices also if they can make a case that there is a need to protect some margin in exchange for service (so festool is free to act the way they do here).

David we do have "best in breed" legislation and regulation in Australia that would generally prohibit retail price maintenance, very generally speaking.

An interesting exception is Festool. Because it is not sold at our "big box stores" they obtained the first exemption in Australia from the rules, purportedly to protect the market of smaller, specialist players.

Originally Posted by Cgcc

David we do have "best in breed" legislation and regulation in Australia that would generally prohibit retail price maintenance, very generally speaking.

An interesting exception is Festool. Because it is not sold at our "big box stores" they obtained the first exemption in Australia from the rules, purportedly to protect the market of smaller, specialist players.

cough...or their own margins....cough...

because they could literally just use terms of an agreement to enforce a level of service and availability.

Hi Simplicity

I've noticed during the past 3-4 years that many of the larger tool retailers price match each other for the mainstream power tools brands. Even Bunnings (who used to have different model numbers for the same makita power tool to avoid having to enact their beat it by ten percent policy) now seem to carry the same model numbered power tools as the other retailers and match their prices accordingly. I don't know if this is 'competition' or 'price fixing'. Even though I'm a suspicious cynical bugger I believe it is probably a bit of both. With the advent of tool retailers having their own websites and published price lists it is pretty easy to check what your competition is doing and modify your own pricing accordingly.

At least there doesn't yet appear to be any price gouging using covid induced supply shortages as an excuse. Just look at how timber prices have surged recently due to worldwide and local shortages.

Regards
Twosheds

With Makita spare parts I go online, get a part number, ring Makita for availability ( this also checks my part number) then order from my local hardware. Generally have the part within a week.
Once I ordered online via an Australian tool spare parts online supplier and after 6 weeks of frustration with hollow promises snd no parts I now go down the route above .
I have ordered from a US firm (ereplacementparts I think) when Makita Aust had no stock and they were great.

David - the idea was that if they couldn't insist on retail price maintenance (ie fixing minimum price) then the smaller boutique stores would get swamped by discounting by larger players.

ACCC authorises minimum retail prices on Festool power tools | ACCC

The problem perceived is that if you let the smaller players get squeezed out then the bigger players just dictate terms and good luck negotiating and enforcing service and availability agreements.

Originally Posted by Cgcc

David - the idea was that if they couldn't insist on retail price maintenance (ie fixing minimum price) then the smaller boutique stores would get swamped by discounting by larger players.

ACCC authorises minimum retail prices on Festool power tools | ACCC

“The problem perceived is that if you let the smaller players get squeezed out then the bigger players just dictate terms and good luck negotiating and enforcing service and availability agreements.

”

An that in a nut shell is the Problem we are now dealing with, there’s no choice, service is a distant dream.
You go from town to the next apart from terrain the shopping is exactly the same.!!!

Cheers Matt.




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The flip side is that it also makes it easier ….. if prices are always the same across all retailers there is no hunting around for a good price, or impulse purchases on a good deal. Just pick a retailer and purchase.

Strange thing is that with many online retailers offering free delivery it’s easier just to order and wait. This must also make it harder for traditional stores as there is no more browsing, checking out new products, or additional purchases at the register with the new major tool purchase.

I can lend you one.

I am in no rush to purchase yet another power tool, but I am happy to wander the tool aisles of the retailers. I believe I have a tool buying illness, but am yet to be barred entry to a store.

A few observations.
Bunnings will generally have tools on display that you can touch. Some of what is a made is either not stocked or is a special order. Makita prices are the same as other stores.

Sydney Tools - I have only been in one store. Very little on display but lots of boxes. Not sure how helpful staff are, but it would probably be best to know what you want before entering the store.

Total Tools - I have been in two stores and they are quite different. One did not have much on display, the other has most tools out for handling. Staff are helpful and friendly.

I have been looking at a few Milwaukee M12 items and have noticed the following: - Bunnings do not sell the line but Blackwoods & Adelaide Tools (both owned by Wesfarmers) do. Price between stores (Total Tools, Blackwoods, Sydney Tools, Adelaide Tools, Just Tools) can vary, but only by a few dollars.

One way you can save (practically in lock down) is to include the cost of delivery in your pricing. Then if a store offers free delivery (or click & collect) compared to adding $14-$20 delivery to the price. I used this last time I bought something from Festool.

These days the internet can be your friend, but there is still nothing like holding a tool in your hand before purchase.