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Author Topic: Proportional Pricing?  (Read 2865 times)

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Offline darbo

  • Posts: 21
Proportional Pricing?
« on: August 03, 2010, 10:14 AM »
Why is an MFS 700 priced more than an OF 1010? Put another way: Why are four pieces of static extruded aluminum rails and a handful of connectors and supporting parts priced higher than a sophisticated/complicated/highly engineered electric routing machine? I don't pretend to understand marketing or manufacturing, and I am not one to complain about the cost of Festool tools as compared with other manufacturers similar tools, but the fact that an MFS 700 is more expensive than an OF 1010 seems all out of proportion to me. Isn't MFS primarily a support jig for OF 1010 and other routers? Sometimes I can comprehend support equipment being priced more than the primary equipment. For instance, a high quality lens can cost more than a digital SLR camera because producing high quality lenses requires a lot of engineering and very expensive materials. But, while I am confident that an MFS set is very well machined, I cannot believe that it is more expensive to Festool to engineer and manufacture an MFS 700 than an OF 1010.

I write this post not to complain or to encourage complaints; only to express bewilderment and astonishment at what seems to me to be pricing that is completely out of proportion to the point of insult. Am I wrong? (I hope so!)
David

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Offline tigger

  • Posts: 193
Re: Proportional Pricing?
« Reply #1 on: August 03, 2010, 10:29 AM »
Hi Darbo

I know for a fact that the actual cost involved in aluminium extrusion (excluding the price of the material) is quite cheap. Once the initial machining costs are paid for the shape of the extrusion, then the actual production is low.
Having said that, it is also imperrative to note the amount of product that is produced. If it's a once off, then the cost of a single MFS could cost more than your house. If we now consider that the demand for an MFS is one in one thousand OF's sold, then it is conceivable that an accessory can cost more than the machine itself.
I can break this up even more into development of the product etc, etc, but I think you getthe idea.

If an MFS of various sizes is sold with every OF, then you can imagine the cost would be lower.

I'm speculating here that this is the reason and not because Festool knows we know, it's a cool accessory to have and would pay anything for it.  [unsure]

I hope I've explained this okay

If it 'aint Festool, it 'aint a tool !

Offline harry_

  • Posts: 1174
Re: Proportional Pricing?
« Reply #2 on: August 03, 2010, 10:05 PM »
Hi Darbo

I know for a fact that the actual cost involved in aluminium extrusion (excluding the price of the material) is quite cheap. Once the initial machining costs are paid for the shape of the extrusion, then the actual production is low.
Having said that, it is also imperrative to note the amount of product that is produced. If it's a once off, then the cost of a single MFS could cost more than your house. If we now consider that the demand for an MFS is one in one thousand OF's sold, then it is conceivable that an accessory can cost more than the machine itself.
I can break this up even more into development of the product etc, etc, but I think you getthe idea.

If an MFS of various sizes is sold with every OF, then you can imagine the cost would be lower.

I'm speculating here that this is the reason and not because Festool knows we know, it's a cool accessory to have and would pay anything for it.  [unsure]

I hope I've explained this okay



I think that is all we will ever be able to do is imagine [big grin]
Disclaimer: This post is for educational and entertainment purposes only. Any resemblance to real persons, living or dead is purely coincidental. Void where prohibited. Some assembly required. Batteries not included. Contents may settle during shipment. Use only as directed. No other warranty expressed or implied. This is not an offer to sell securities. May be too intense for some viewers. No user-serviceable parts inside. Subject to change without notice. One size fits all (very poorly).