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Author Topic: Let's turn this business model around (full 180)  (Read 3365 times)

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Online Scorpion

  • Posts: 576
Let's turn this business model around (full 180)
« on: February 08, 2017, 12:58 AM »
If it were me, I'd release all of your products in the US first as a test market and then, once we totally shake them out, make them available to the rest of the world.  Using this approach is just a smart strategy when you really, really think about it.  Stomp out all this negative NAINA publicity you're constantly getting.   

{waiting for you to really, really think about it}

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Offline Holmz

  • Posts: 4010
Re: Let's turn this business model around (full 180)
« Reply #1 on: February 08, 2017, 05:54 AM »
As the German woodworkers appear to be in tuxedos, I defer to their expertise.

Offline TylerC

  • Festool USA Employee
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  • Posts: 1051
Re: Let's turn this business model around (full 180)
« Reply #2 on: February 08, 2017, 08:38 AM »
As an American, I'm all for it. U-S-A! U-S-A! (and C-A-N-A-D-A!)

However, there are a few problems. (And these decisions are made on a different continent from me, so I'm making a few assumptions here.) The US is such a huge market, that it's easier to test in smaller countries before rolling it out to larger countries. Also, North America tends to be one of the most different markets than the others. This makes it easier to roll out a product to several European countries before having to deal with us troublesome American. Lastly, as a German company, I think the German market will always home-field advantage.

Offline bobfog

  • Posts: 838
Re: Let's turn this business model around (full 180)
« Reply #3 on: February 08, 2017, 09:01 AM »
When any business launches a new model it needs to get a return on investment as quickly as possible. Whilst the US market might be the single biggest. It's not bigger than all the European counties as a whole. Therefore it makes for a quicker recoup on the initial outlay by leveraging the easy cross border sales throughout Europe, before worrying about the additional complexities of N. America.


Offline JimH2

  • Posts: 616
Re: Let's turn this business model around (full 180)
« Reply #4 on: February 08, 2017, 11:32 AM »
Keep using the tools and let Festool determine their business practices and if you don't like them switch to another tool brand. I don't know and nor do you know how these decisions are made. I do know that the US and EU markets have different regulations and if you are making a tool to sell and you are based in the EU then you design it for the EU, test and evaluate and then decide where to sell it.

Offline mikeyr

  • Posts: 59
Re: Let's turn this business model around (full 180)
« Reply #5 on: February 08, 2017, 12:08 PM »
you are missing out on the basic fact that Americans are CHEAP and if they can buy some barely functional, will break 3rd time you use it tool for $0.01 less, that is the tool they will buy and brag how much money they saved.  Of course Festool owners here are the exception to that rule :)
 The other thing is that in Europe, there is a different kind of brand loyalty, I see it in Italy where Italian cars are favored over all others (and I am not talking Ferrari's, although of course they are favored), same in France with cars and FACOM tools over other brands.  In Germany they will buy Festool over U.S. (lets face reality, foreign) brands because in Europe there is country loyalty as well as brand loyalty.  Look how many tools (and other things) are still made in the U.S., we are price shoppers, not quality shoppers and priced all the manufacturers out of the U.S.
 Of course there are exceptions but we exceptions are not enough of a market for any company to turn their working business model around to suit us.
ex-cabinet maker, now I just play with wood

Offline Peter Halle

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  • Posts: 11556
Re: Let's turn this business model around (full 180)
« Reply #6 on: February 08, 2017, 04:59 PM »
Another possible reason for the initial room out in Europe versus NA is that you can be manufacturing for several countries at the same time due to the common electrical services.  Then you have to switch over to produce the odd for the odd electrical services.

Then of course you have the more litigious society over here.  Why not roll out tools elsewhere where it is "safer" to do so first.

All my thoughts; not speaking for FESTOOL of course.

Peter

Offline Untidy Shop

  • Posts: 2672
Re: Let's turn this business model around (full 180)
« Reply #7 on: February 08, 2017, 06:40 PM »

@Peter Halle highlights safety and litergation fears. One only has to compare the North American HK55 model to the one sold in Europe, UK and Australia to see how Festool has to adapt to the US both by regulation and litegation potential. Then there are the other factors such as Voltage. All this ads to manufacturing costs.

So -
. . . . .Why not roll out tools elsewhere where it is "safer" to do so first.. . .
Peter



If you look carefully, the molding on both machines allows for the NA warning sticker. An example where those NA 'compliance' costs are shared by us all, via design necessities.
« Last Edit: February 08, 2017, 06:55 PM by Untidy Shop »
If you don't like Signatures, just go to Look and Layout and tick No Signatures.

“The test of the machine is the satisfaction it gives you. There isn't any other test. If the machine produces tranquility it's right. If it disturbs you it's wrong until either the machine or your mind is changed.”
― Robert M. Pirsig, Zen and the Art of Motorcycle Maintenance: An Inquiry Into Values

Offline Peter Halle

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  • Posts: 11556
Re: Let's turn this business model around (full 180)
« Reply #8 on: February 08, 2017, 07:02 PM »

@Peter Halle highlights safety and litergation fears. One only has to compare the North American HK55 model to the one sold in Europe, UK and Australia to see how Festool has to adapt to the US both by regulation and litegation potential. Then there are the other factors such as Voltage. All this ads to manufacturing costs.

So -
. . . . .Why not roll out tools elsewhere where it is "safer" to do so first.. . .
Peter

(Attachment Link)

If you look carefully, the molding on both machines allows for the NA warning sticker. An example where those NA 'compliance' costs are shared by us all, via design necessities.

As I wrote - these were just my thoughts.  Festool doesn't discuss marketing strategies here as a norm. 

Peter

Offline Poindexter

  • Posts: 143
Re: Let's turn this business model around (full 180)
« Reply #9 on: February 08, 2017, 07:11 PM »
American lawyers. 

Online Scorpion

  • Posts: 576
Re: Let's turn this business model around (full 180)
« Reply #10 on: February 08, 2017, 08:42 PM »
Social media sucks. Seems like no one look at it from a humor angle. Sure, there's a bunch of reasons why they shouldn't, but I was figuring that if they realized it would be really cool for me, they might do it.  None of you nay sayers believe.  You're non believers. 


Sent from my iPhone using Tapatalk

Offline WarnerConstCo.

  • Posts: 4076
    • Warner Mill Works
Re: Let's turn this business model around (full 180)
« Reply #11 on: February 08, 2017, 09:48 PM »
The market here in the US is tiny compared to the rest of the world.

Offline Untidy Shop

  • Posts: 2672
Re: Let's turn this business model around (full 180)
« Reply #12 on: February 08, 2017, 09:53 PM »
If it were me, I'd release all of your products in the US first as a test market and then, once we totally shake them out, make them available to the rest of the world.  Using this approach is just a smart strategy when you really, really think about it.  Stomp out all this negative NAINA publicity you're constantly getting.   

{waiting for you to really, really think about it}

[blink]

@Scorpion
Where  in the above statement is there any hint that, as we say down here, "You were taking the p _ _ _! "?  [smile]

https://en.m.wikipedia.org/wiki/Taking_the_piss
« Last Edit: February 08, 2017, 09:56 PM by Untidy Shop »
If you don't like Signatures, just go to Look and Layout and tick No Signatures.

“The test of the machine is the satisfaction it gives you. There isn't any other test. If the machine produces tranquility it's right. If it disturbs you it's wrong until either the machine or your mind is changed.”
― Robert M. Pirsig, Zen and the Art of Motorcycle Maintenance: An Inquiry Into Values

Offline TylerC

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  • Posts: 1051
Re: Let's turn this business model around (full 180)
« Reply #13 on: February 08, 2017, 09:56 PM »
I thought the OP was funny and light-hearted. So were many of the responses. Let's be sure that it stays in that direction.

Offline Mort

  • Posts: 353
  • World's Tallest Midget
Re: Let's turn this business model around (full 180)
« Reply #14 on: February 09, 2017, 12:11 AM »
I just want to know what the secret password is to be a Beta tester. Is it Tyler's birthday, or is it more complicated than that?
I hate signatures.