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11th February 2019, 07:51 PM #1GOLD MEMBER
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Festool Price Maintenance...or not?
I was idly considering the merits of a cordless Festool circular saw and stumbled upon a great sale price. Upon going to my local tool store I discovered that this was not a Festool promotion and that they wouldn't dare even try to match the price for fear of losing their account.
They offered to call Festool after the weekend to see what they could do, but I told them I feared that this "sale" price might disappear following that phone-call and I'd order online instead - to which the salesperson agreed.
So what's the deal? Can some retailers discount independently from Festool's recommended / nationally set pricing?
Cheers, Dom
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11th February 2019 07:51 PM # ADSGoogle Adsense Advertisement
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11th February 2019, 08:17 PM #2GOLD MEMBER
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As far as I know, not officially- discounting festool is a no-no. It doesn’t stop people quietly doing it though. However, if it comes to the notice of a Festool official, they will move very quickly to shut it down (I had this very recently where I mistakenly mentioned a sale price to one of the reps).
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11th February 2019, 08:38 PM #3
From all my queries and feedback, I believe Festools fixed price has something to do with some restrictions imposed by ASIC... or some other formal legalise BS. Individual distributers are legally bound to not discount outside Festool promotions. Having said that, you may be wasting time as all vendors are bound by setprices by Festool nation wide... You may cop an overseas bargain, but ensure the voltage is compatible... even if it's only for the charger of a cordless tool.
Now having said all that, you really can't go past the cordless Festool saw. While other brands (Makita, Bosch, Triton) have reliable tracks, if you have a Festool router you can work wonders with it using their track and router attachment (sold separetely of course).
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11th February 2019, 09:00 PM #4GOLD MEMBER
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Yeah, I understand that Festool has an exemption from the price fixing laws regulated by the ACCC and from what I understood they are pretty hard-up on enforcing it with their retailers - hence my surprise. This was from an Australian retailer. Maybe it's an outgoing model or kit and they have approval from Festool to clear stock? It still comes up as a current model on the Festool site though. In any case I'm not complaining about 27% off, it just seemed a bit odd - hopefully I get what was advertised/what I expect and that I didn't miss something.
I have the router and track attachment, i've just never had need to use it (the attachment) yet. I could see it being very handy for dado's on cabinet sides etc.
Cheers, Dom
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12th February 2019, 11:10 AM #5.
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12th February 2019, 12:22 PM #6GOLD MEMBER
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12th February 2019, 05:29 PM #7.
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Still in place
ACCC have granted an "open ended extension" that now inclues Fein powertools (they weren't included in the original agreement)
ACCC said they can cancel it at any time, but it looks as though it will be permanent bassed on the possitive feedback from Festool dealerships.
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12th February 2019, 07:25 PM #8GOLD MEMBER
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I would bet money that that the dealers would like it as essentially it means they don't have to cut each others throat on price. What I have never seen is how they price to trades they sell in to such as panel beaters.
Do they have only company reps selling to the trades and do those reps discount to get sales?CHRIS
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12th February 2019, 08:24 PM #9GOLD MEMBER
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If that were the case, then the whole "free tool demo" program they have running at the moment (presumably for trades / businesses not so much for individuals) would certainly facilitate this; although I doubt they would risk offering discounts directly - imagine the fall-out if that were to become public knowledge. They would face backlash from not only the customers but also their dealer network. One would think that it would also affect their exemption from the price-fixing rules as well. So I guess I doubt they are discounting, even to the trades directly.
In any case, not sure how or why my saw was on sale, but I'll take it
Cheers,
Dom
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12th February 2019, 09:12 PM #10GOLD MEMBER
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The festool rep will happily turn up at your house and spend an afternoon letting you use the tools. You don’t need to be a business or a trade.
I had the local rep around when I was thinking of getting some tools - I figure they’re so expensive, you may as well get the whole offering. Punch the ‘request a demo’ button on the website, and you’ll get a call.
My local tool shop will also lend out a festool for an extended weekend demo if they know you.
Trades don’t get a discount either. Same price for all (this gets discussed every now and then on the FOG forum).
But there are often unofficial discounts to be had, particularly on ex-display or end of line stuff. You just need to be patient, and have a good relationship with your local dealers and reps.
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12th February 2019, 10:02 PM #11
Legend has it that the dealers have to fax the customer's invoice into HQ for "Warranty" purposes. You'd have to think that this would also preclude any discounting....or get busted by the Pricing Police. O'course that doesn't mean that you can't get a "better than usual" deal on something else purchased at the same time (either non-Festool or consumables, or......well just get creative...)
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13th February 2019, 06:48 PM #12
Seems there could be a bit of price fixing going on with several major brands. I was recently looking at the prices for a couple of different ROS (not Festool) & a Makita trim router. The price for the sanders was the same at every place & even the big green shed had the same price for the router as everywhere else.
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13th February 2019, 08:30 PM #13GOLD MEMBER
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13th February 2019, 08:45 PM #14GOLD MEMBER
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And that is what makes Festool dealers happy little vegemites, no sales promotions as a rule and guaranteed margins, I would welcome them with open arms if I was a tool retailer and I notice Total Tools have done just that. As I have said in previous debates on this subject I don't know what the problem is, even if the tools were discounted they would still be so expensive the majority of users could still not afford to buy Festool anyway. I personally don't see the value in the tools but I admire the business case as everyone knows where things lie.
CHRIS
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13th February 2019, 09:38 PM #15
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