Thread: Resale price maintenance

G'day,

Not that I want a Festool or can afford one, but about bl**dy time that they got their backside kicked.

Doesn't seem anything has changed - still no competition in Festo prices. Maybe would be purchasers need to write a few letters to the ACCC again.

I still like my 9.6v Festo drill, which WAS bought at a discount - from FESTO - but I can afford a lot of 'almost as good' tools for the price of one Festo.

Originally Posted by bsrlee

I still like my 9.6v Festo drill, which WAS bought at a discount - from FESTO - but I can afford a lot of 'almost as good' tools for the price of one Festo.

As soon as people stopped buying Festool, the price would drop dramatically.

Its strange how the supply and demand works isnt it.

Al

It's almost everywhere the same. Tooltechnic is everywhere the importer.... they keep retailprices from retailers the same under the threat the importer won't supply the retailer anymore if they offer festool agiants other prices than listprices or if they give too many discount. Tooltechnic is ofcourse part of the Festool family. My guess is they try to keep the brand exclusive.... Because they do not gain anything by it in my opniion. Rebates and discounts are the costs of retailers not the costs of an importer Unless he has to sponsor those discounts).They are doing this very aggressive.

But this doesn't change my addiction for Festool products. With my addiction I'm almost a local marketpower myself. I just threaten the retailer to buy my Festool stuff somewhere else if I don't get a discount from him.

There are several phone numbers at the bottom of that linked judgement and maybe it would help to ring those. A concerted proven list of compaints may be the answer. Note that this judgement only concerns activities in 2001-2002, I wonder why?

Originally Posted by Mini

........... Note that this judgement only concerns activities in 2001-2002, I wonder why?

It probably took this long to get it to court.

Mick

So if we had proof that RPM was still occuring or good reason to think it was it may be a good idea to alert the ACCC to that fact.

Hi

Originally Posted by ozwinner

As soon as people stopped buying Festool, the price would drop dramatically.

Its strange how the supply and demand works isnt it.

Al

As soon as prices are REALISTIC people would START buying Festool. I don't doubt that Festool tools are quality items, it's just that their prices are NOT realistic.

The Domino tool is my real bugbear. How can they justify $1400(?) for what is a glorified "angle grinder" or biscuit joiner. Ok, I know it is a bit more refined and more accurate, but hey, they make these things by the thousands(?). When a manufacturer tools up for something like this, it is no more difficult or costly to make than any other tool, the costs are amortised over many items.

Personally I think that $700 is still a high price for a Domino, but at least that would be a little more realistic for a quality tool.

IMHO, while I recognise the extra thoughtfulness in Festool's designs and their "systems" are VERY GOOD, they are NOT coincident with Festools pricing. The EXTRA festool charges for their "extras" is not justifiable.

Originally Posted by MrFixIt

IMHO, while I recognise the extra thoughtfulness in Festool's designs and their "systems" are VERY GOOD, they are NOT coincident with Festools pricing. The EXTRA festool charges for their "extras" is not justifiable.

You may be right from your perspective, Peter, but since when does anyone have to "justify" the price they want to charge for an item? In a free market, you offer it and the market buys it or rejects it at your price point. The relationship between "cost to produce" and "price charged" is irrelevant, except to the producer.

The next argument is "They could sell a lot more if they would lower the price." Yes, but apparently they don't want to as part of their marketing strategy. If BMWs or Mercedes were lower in price they would sell more too, but the brand would soon lose its cachet with the consumer and in the end kill the brand entirely.

Festool have chosen a market niche they are comfortable with, and as frustrated as we all may be from time to time by the one they've chosen, it's just tough cookies for us.

Don't forget that Festool, like Miele, are manufactured in Germany with German labor which includes appropriate wages and conditions, unlike Chinese slaves who get $1.50 a day and are forced to live in the Chinese equivalent of Gitmo.

Originally Posted by Honorary Bloke

.

If BMWs or Mercedes were lower in price they would sell more too, but the brand would soon lose its cachet with the consumer and in the end kill the brand entirely.

Festool have chosen a market niche they are comfortable with, and as frustrated as we all may be from time to time by the one they've chosen, it's just tough cookies for us.

Well said Bob. And we as Woodworking consumers arnt forced to buy Festool products just like we dont have to buy Mercs or BM`s

Looking back at an old post 4th April last year i was having a premature seniors moment and said

Originally Posted by Lignum

You can easly compare notes on a $1300 Mayfell Duo Dowler to a $80 GMC Dowler, but to compare anything at $600 to $1200 is pointless. $600 will buy a first rate power tool capable of perfect accuracy under all the tough conditions thrown at it. Its like saying dont buy a $450 Porta cable Plate Jointer because its GMC like compared to a Lamello, just not true. Id love a Duo Dowler, but at $1300 forget it. Id love a Domino, but at $1200 forget it.

A porta Cable Plate Jointer $450 plus the new Kreg K3 at $250 and a nice Panasonic Cordless with the remaining $550 would be a far better way to add to a workshop than a $1200 Morticer

I make my self laugh at times. The Domino was the best $1200 i have spent on anything wood related in over 15 years.

Originally Posted by Honorary Bloke

You may be right from your perspective, Peter, but since when does anyone have to "justify" the price they want to charge for an item? In a free market, you offer it and the market buys it or rejects it at your price point. The relationship between "cost to produce" and "price charged" is irrelevant, except to the producer.

The next argument is "They could sell a lot more if they would lower the price." Yes, but apparently they don't want to as part of their marketing strategy. If BMWs or Mercedes were lower in price they would sell more too, but the brand would soon lose its cachet with the consumer and in the end kill the brand entirely.

Festool have chosen a market niche they are comfortable with, and as frustrated as we all may be from time to time by the one they've chosen, it's just tough cookies for us.

I agree with your sentiments, however where they have transgressed the law is in controlling what another company charges for their product. They have every right to sell to their dealers at whatever they choose. What they can't do is to force the dealer to sell at their nominated price.

In this country that's illegal. The law is designed to boost competition and to stop cartels fixing prices, to the detriment of the consumer. Take the Oil Companies etc as an example.

I'm a great beleiver in competition and the free market. In this case the law is designed to ensure a free market.

G'day Bodgy,

What you wrote was eloquently said and I fully agree.

Hi all,

A few years ago, i step in a shop to buy a festool plane and a dust extractor...
The prices given by the guy behind the desk were higher than those listed on festool catalog.

That's the other side of the story: nobody likes to pay more for the discount that is offered to another.

When a maker indicate his prices , it just make sense (to me at least) that you can find and buy at this prices in your favorite shop.

No? Must be missing something there, but please don't agonize me under economical theories, it's just a though from an ordinary man.