Festool pricing

**monoman** · 17th November 2004, 06:39 PM

Hi All,

I've read the thread on Festool pricing mainly because I have been trying to purchase several Festool product to replace my ELU tools which were stolen. All of the dealers I have spoken to in Melbourne have been quite open telling me that they cannot discount Festool because they are afriad of loosing their dealership.

Now, I never begrudge a company for wanting to charge as much as they like and make as big a profit as they like. After all, it's always up to me to decide if I'll pay the asking price. However, what I can't stand, is when a company tries to control the market, thereby preventing me from finding a cheaper supplier.

I have lodged a formal complaint with the ACCC, and gave them the details of all the companies I had spoken to, as well as a copy of the email I sent to Festool asking for an explaination. No surprise, Festool never responded. Since lodging the complaint (mid October) , I have received over 15 calls from the ACCC investigator assigned to this issue.

According to the ACCC, a company may fix the price its product can be sold for in the market provided they can demonstate that to so IS for the good of the public (unlikely in this case due to the number of competitors), and that they must first seek an excemption from the ACCC. Festool have not done so.

The only other way that a Festool could control the price is where the shop displaying the product, sells the product on behalf of Festool and therefore they do not buy the product from Festool. I think this is unlikely, as many of the stores I spoke to said that they don't keep a big range of Festool because it is too expensive to buy in.

A store in Melbourne is currently having a 20-70% off everything sale. So I called and asked for a price on an OF1400 router. "Doesn't apply to Festool" came as no big surprise. When pushed they claimed it was because the margin was so small they were only making a few dollars on it anyway.

If anyone else has had similar problems, I'm happy top forward info on to the ACCC, or pass on the contact details off-line.

Cheers

**GeoffVIC** · 17th November 2004, 06:59 PM

Originally Posted by monoman

Hi All,

A store in Melbourne is currently having a 20-70% off everything sale.

Who's having the sale?

**monoman** · 17th November 2004, 07:11 PM

Originally Posted by GeoffVIC

Who's having the sale?

My housemate used the back few pages of the trading post to start a fire lasst Friday night, so I don't have it in front of me. They are in Swan street, Richmond. Hope that helps.

**Sturdee** · 17th November 2004, 07:17 PM

Originally Posted by monoman

They are in Swan street, Richmond. Hope that helps.

That would be Carbatec. They have been having this sale for a while trying to reduce floor stock prior to their move to Bayswater.

Peter.

**monoman** · 17th November 2004, 07:20 PM

Originally Posted by Sturdee

That would be Carbatec. They have been having this sale for a while trying to reduce floor stock prior to their move to Bayswater.

Peter.

No. Not Carba-tec. Carba-tec is iun Burnley. Richmond is closer to the city on Swan st. The store I'm refering to is near the Corner Hotel and Richmond station.

**Rubber.Piggy** · 22nd November 2004, 03:15 PM

I read the other thread on festool pricing as well, and was a little surprised. I've never had any problems getting <RRP on my festo tools. In fact the place i buy them from seems to ask <RRP as a rule. The only time i have had to pay list price is when i ordered one in.

**monoman** · 22nd November 2004, 04:21 PM

This is too good to be true. Care to share the name of your delaer?

**zymurgy** · 22nd November 2004, 10:17 PM

I would also like the name of someone who sells Festool products at less then R/R.

**monoman** · 22nd November 2004, 11:13 PM

Hey Rubber Piggy,

you're not on their payroll are you? Just kidding. I'd love a lead on a discust on Festool. I need to buy their router and plunge saw. Damn fine machinery. Just need to convince myself that these guys are ethical, otherwise I won't give them my money. I know this means I'll have to settle for something inferior, but I'm prepared to live with my morals. If anyone from the company is listening in, feel freee to send me a PM.

One more thing. I saw the MFT thing at the WWS last October. I'm not sure I've got this right. In their catalog (price list), an MDF plaing set sells for $1,477 and it includes a EHL 63 E planer ($467) plus a CT 33 E dust extractor ($999.00) and an MFT? Doesn't this mean you get an MFT for $10? Whereas, for $3,037 you get an TS 55 EBQ-Plus saw as well for an extra $1,590 make that saw pretty expensive. The planer, DC and table look pretty good.

Am I missing something?

**Rubber.Piggy** · 23rd November 2004, 12:58 PM

Of course I'll share. I've bought my past festo tools at Total Tools Industial in Moorabbin (melbourne) on warrigal road. Now don't get your hopes too high up, the discount from RRP are typically only ~$50. However I have always been pleasantly surprised when i have gone in there expecting to pay, say, $500 and it is on the shelf marked as $450. Also I have never tried to talk these guys down, I was happy enough that the marked prices were <RRP.

Few other things to note are, as i mentioned above, when i ordered a tool not in stock I had to pay RRP, but it's possible that that was just 'cause the guy ordered it straight out of the catalogue. They do generally keep a good range in stock. Also there seems to be only one guy in there who knows the festool products and if you talk to anyone else you won't get much useful info.

As a note, I get the impression (from talking to reps and dealers) that the reason festool products don't get discounted is because the profit margin is so small.

I also have a place in sydney that i get bulk festool sanding discs from super cheap, almost cost price i think. I'll try and find the name of the place and the price of my last purchase.

**monoman** · 23rd November 2004, 03:52 PM

Festool have been good enough to contact me directly to discuss their pricing policies. See, these forums work, and the companies do listen in.

The chap I spoke to maintains that Festool do not set the prices or threaten dealers with loss of distributorship. He was very understanding of my concerns, and also rather convincing. As I've mentioned previously, the ACCC is investigating, so we'll just have to wait for the outcome. Hopefully, they'll clear Festool, then I can buy those goodies I've been waiting for.

Cheers

**Slider** · 23rd November 2004, 05:25 PM

Monoman,
I for one appreciate the effort you have gone to with regard to Festool's policies on pricing in this country. I am yet to find a shop that will discount their tools. The best you seem to be able to get is bonus (non-Festool) extras (e.g. sanding sheets etc)
I know they regard themselves as the ducks guts, but really they are grossly over-priced in my view.

Andrew

**monoman** · 23rd November 2004, 05:51 PM

Originally Posted by Slider

Monoman,
I for one appreciate the effort you have gone to with regard to Festool's policies on pricing in this country.
Andrew

Thank you.

As far as the price of their products go, yes they are expensive. However, they are superior to the rest, and one of the few companies which are innovating. Beautifully built machines which are well balanced and deliver every bit of performance promised. Now, if only they'd drop the price by 20%..........

Cheers

**Iain** · 17th December 2004, 02:54 PM

The place in Richmond is;

The Tool Centre
132 134 SWan St
Richmond
94248077

Sounds like the one, I have bought tools there and they are good to deal with.

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