Bucko
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Location: Australia Member Since: Dec 2010
Posts: 10
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« on: July 24, 2012, 06:05 AM » |
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Could somebody tell me why the difference in prices for Festool products in the USA & AUS are so different & yet our dollar & the US dollar are about the same value. I priced a Capex 120 slide compound saw in Australia for $1850.00 & in the US the same saw costs $1350.00. A difference of $500.00. There is a difference of 37%.They are built the same except for the power plug. All the festool products are the same, yet I am not allowed to buy festool tools from the USA. Why   |
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Kev
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Location: Australia Member Since: Nov 2011
Posts: 2646
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« Reply #1 on: July 24, 2012, 06:14 AM » |
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Festool are simply pricing to be competitive in the US market. Australia is a smaller market and we're service by a distributor (not Festool direct) so both will want to make a "happy" profit.
Then we have GST, which is included in the price you quote.
The KAPEX is actually one of the closer prices percentage wise - particularly when you look at Festool consumables ...
Consider that just one of the significant US retailers probably sells more the Tooltechnic and you'll get perspective.
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Aquila
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Location: Brisbane, Australia Member Since: Jun 2008
Posts: 15
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« Reply #2 on: July 24, 2012, 07:14 AM » |
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Kev, That may help to put it in context, but that does not excuse this practice - it is simply price gouging! This practice is totally unacceptable in an economy like Australia. It is exactly why the ACCC is being asked to investigate the same sort of gouging in the computer and software markets where prices in Australia are typically greater than 50% more than those in North America. Have a look at Syslite prices - $175 in US, $299 in Australia! where the exchange rate is 3% in our favour in Australia. That difference is ridiculous! That is not happy profits - that is gouging! I'm happy to pay more for Festool design and quality but not for ridiculous dealer margins! GST is not an excuse - most American states have a similar tax - often at a greater rate than ours!
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Jaybolishes
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Location: vt Member Since: Apr 2012
Posts: 159
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« Reply #3 on: July 24, 2012, 07:45 AM » |
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Do you guys notice the significant price difference for just festools, or is that common with all tool brands. I could not imagine paying those prices, wow that seems unfair.
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RL
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Location: Canada Member Since: Feb 2010
Posts: 2155
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« Reply #4 on: July 24, 2012, 07:55 AM » |
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US Foggers should realise that their relatively low prices are the exception rather than the norm for Festools.
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I like green.
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Bucko
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Location: Australia Member Since: Dec 2010
Posts: 10
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« Reply #5 on: July 24, 2012, 07:58 AM » |
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Festool in Australia does not discount, Meile does not discount, Mercedes does not discount You pay the same price where ever you go in OZ for the German products, yet the difference in price between OZ & USA does not ring true. If the American people went to our Aus festool sights & saw the difference in prices, they would get a shock, even down to sandpaper. 2 plus 2 don't add up to 4. ??
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Bucko
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Location: Australia Member Since: Dec 2010
Posts: 10
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« Reply #6 on: July 24, 2012, 08:04 AM » |
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Jaybolishes.
other products like Makita, Bosch etc are competitive, you only have to go to our sights & see.
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Kev
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Location: Australia Member Since: Nov 2011
Posts: 2646
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« Reply #7 on: July 24, 2012, 08:09 AM » |
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Kev, That may help to put it in context, but that does not excuse this practice - it is simply price gouging! This practice is totally unacceptable in an economy like Australia. It is exactly why the ACCC is being asked to investigate the same sort of gouging in the computer and software markets where prices in Australia are typically greater than 50% more than those in North America. Have a look at Syslite prices - $175 in US, $299 in Australia! where the exchange rate is 3% in our favour in Australia. That difference is ridiculous! That is not happy profits - that is gouging! I'm happy to pay more for Festool design and quality but not for ridiculous dealer margins! GST is not an excuse - most American states have a similar tax - often at a greater rate than ours!
Never said it was acceptable. Paying exactly double the US prices for Festool drill bits ?? Yes, it's gouging pure and simple. I'm just saying that Festool do price lower for the US market than any other market worldwide. Look at what we're charged for a bottle of water, consider the price of cars - I'm the first to complain about the relative price of Festools ... but our pathetic excuse for a government is simply a tool used by the major corporates and banks that suck us dry. Can you blame the small local distributors for following suit? You need reliable local warranty for the bigger ticket items - for the rest ... I'm not so sure. |
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zapdafish
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Location: Holly Springs, NC Member Since: Apr 2010
Posts: 307
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« Reply #8 on: July 24, 2012, 10:56 AM » |
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We've got military bases in Germany.  |
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CT22, TS55, Kapex, RO150, Domino, RS 2 E
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sancho57
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Location: So Cal USA Member Since: Jan 2011
Posts: 1173
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« Reply #9 on: July 24, 2012, 12:21 PM » |
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Since festools are imported into the country, what are the tariffs, import taxes?
That could have a large effect on cost.
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Shhhhhh Dont tell the wife butttttt I bought another…….
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bpitch
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Location: Seattle, WA Member Since: Jun 2012
Posts: 52
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« Reply #10 on: July 24, 2012, 12:58 PM » |
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Since festools are imported into the country, what are the tariffs, import taxes?
That could have a large effect on cost.
I am most certain that is the case. I use to work for a small production company and we have shipped overseas, and somehow shipping to Australia or New Zealand is at first two times more expensive than say to China, Japan, or Western Europe ( From Los Angeles) and also the tariffs are much higher (well EU is very similar tariff vice) |
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Kev
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Location: Australia Member Since: Nov 2011
Posts: 2646
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« Reply #11 on: July 24, 2012, 01:45 PM » |
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It's simply a fat supply chain ... dealing with lower volumes. Now to be clear, I'm not defending high prices but to be fair it is expensive to run a distribution business in Australia. Leaner business models are needed.
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vkumar
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Location: Sunnyvale, California Member Since: Jan 2007
Posts: 221
Sunnyvale (near San Jose) California
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« Reply #12 on: July 24, 2012, 02:28 PM » |
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This seems to be an Australian thing.
All prices are high compared to the US. i visited OZ a couple of times last year and was shocked at the price of food, hotels, just about most things. Did not understand why.
Vijay
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Captainwrinkles
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Location: CANADA (CA) Member Since: Jan 2010
Posts: 90
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« Reply #13 on: July 24, 2012, 07:41 PM » |
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You think Aussie is expensive......Try buying the same tools in New Zealand. Thats a rip off!
I think America is exempt from general worldwide pricing. A snowmobile built in Quebec, Canada is sold at a cheaper price in America than sold in Canada. Go Figure.....
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« Last Edit: July 24, 2012, 07:43 PM by Captainwrinkles »
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sancho57
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Location: So Cal USA Member Since: Jan 2011
Posts: 1173
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« Reply #14 on: July 24, 2012, 09:16 PM » |
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You think Aussie is expensive......Try buying the same tools in New Zealand. Thats a rip off!
I think America is exempt from general worldwide pricing. A snowmobile built in Quebec, Canada is sold at a cheaper price in America than sold in Canada. Go Figure.....
I think in canada you have more local , state and fed taxes that are incorporated into the cost. I wonder if NAFTA has anything to do with the cost of exporting those to america. |
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Shhhhhh Dont tell the wife butttttt I bought another…….
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Bucko
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Location: Australia Member Since: Dec 2010
Posts: 10
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« Reply #15 on: July 25, 2012, 04:41 AM » |
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in the USA from Ace Tools a CT 36E AC plus a Kapex 120 costs $1,912.50
in Australia the same products costs $3,375.00
a difference of $1,462.50.
I have spoken to three different sellers & they have told me that Festool won't let them discount their products.
I tried to buy from the USA & was told they weren't allowed to sell the products overseas to OZ
OK I accept that but what I would like to know is, why such a big price difference when our dollars is nearly the same.
I have about 12 of their products that I use & am very happy with them & i paid a good price for them.
All other brand tools are nearly on par with our prices & are plus they are all competitive.
If they were the same price as the USA or close, then festool would be selling a lot more in Aus & I would buy more.
I think I know what is going on.
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vkumar
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Location: Sunnyvale, California Member Since: Jan 2007
Posts: 221
Sunnyvale (near San Jose) California
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« Reply #16 on: July 25, 2012, 01:07 PM » |
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Even if you could get the tools from the US, you will have to deal with the 120 V motors, import duties if any, lack of warranty.
I think in general the US prices are lower for all goods because of free competition and lower taxes (not talking about Festools here-other goods )
Vijay
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« Last Edit: July 25, 2012, 01:19 PM by vkumar »
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wolften
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Location: Planet Earth Member Since: Sep 2010
Posts: 21
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« Reply #17 on: July 25, 2012, 05:35 PM » |
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Captainwrinkles
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Location: CANADA (CA) Member Since: Jan 2010
Posts: 90
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« Reply #18 on: July 25, 2012, 07:36 PM » |
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If the type of motor (120v or 240v) is the big difference in price, Why do they charge $1029.25 for the 150/3 Pneumatic sander in New Zealand but the same
sander in Canada is only $417.38+tax? Theres no motor!
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bpitch
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Location: Seattle, WA Member Since: Jun 2012
Posts: 52
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« Reply #19 on: July 27, 2012, 03:37 AM » |
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If the type of motor (120v or 240v) is the big difference in price, Why do they charge $1029.25 for the 150/3 Pneumatic sander in New Zealand but the same
sander in Canada is only $417.38+tax? Theres no motor!
What you may check on tariffs on imports. Sometimes when a price for a product falls just above some threshold the duties can grow almost exponentially. For example if ship to Dubai or Brasil from USA and value is below $300, I believe , no duties at all, but over that amount, and they pretty much 100% ( I am talking about luxury goods) Another thing, maybe Festool executives do not like AC/DC or Ozzy with his family???  |
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Bucko
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Location: Australia Member Since: Dec 2010
Posts: 10
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« Reply #20 on: July 27, 2012, 04:04 AM » |
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http://www.woodworkforums.com/archive/index.php/t-137177.htmlPlease have a look at this sight. it says it all. The same thing as am asking A lot of Aussies have been asking the same question that I asked. We are nearly paying double the price of what the American people. are buying their product for, especially consumables. Now in Oz, Festool is distributed by Tooltechnic Oz - not owned by Festool, but owned independently by guys that have in some cases worked for Festool. nearly double the price. ??
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andvari
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Location: Central NJ Member Since: Oct 2011
Posts: 333
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« Reply #21 on: July 27, 2012, 12:02 PM » |
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You think Aussie is expensive......Try buying the same tools in New Zealand. Thats a rip off!
I think America is exempt from general worldwide pricing. A snowmobile built in Quebec, Canada is sold at a cheaper price in America than sold in Canada. Go Figure.....
I used to live in Syracuse NY; every weekend the mall parking lot had lots of cars with Canadian plates. The US market has a lot of aspects that tend to keep prices down. The main ones I think are size and that it's monolithic. 330 million on average well paid folks nominally all speaking the same language and no internal borders. |
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TS55, Domino 500, Domino Assortment, OF1400, CT36+Boom Arm, T12+3, FS3000, Parallel Guides, RO 90, ETS 150/3, Domino XL, Domiplate, LS130, RTS Guide Stop, CMS-GE
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Vindingo
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Location: North Jersey Member Since: Jan 2009
Posts: 409
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« Reply #22 on: July 27, 2012, 07:44 PM » |
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Quote from BobL (6/24/11) on Woodworkforums.com "You are right - it's about turnover but this is not directly related to population it's also related to consumer attitudes ie how many products you are prepared to go into hock to purchase. Many Americans own 3 cars a motorcycle or two and a couple of boats, jet skis and a shed full of tools they rarely use etc." I seem to have misplaced 2 cars, a motorcycle, a couple boats, and some jet skis - maybe I left them at my Festool dealer? Not sure I understand the "shed full of tools they rarely use" comment either?  |
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Peter James
Festool Dealer
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Location: USA Member Since: Feb 2012
Posts: 282
Festool Dealer Right Outside NYC - 10,000 Sq Feet
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« Reply #23 on: August 01, 2012, 10:01 AM » |
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Vinny, we'll return your vehicles next week. Just gotta gas them up. Thanks for letting us use them  |
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Vindingo
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Location: North Jersey Member Since: Jan 2009
Posts: 409
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« Reply #24 on: August 01, 2012, 12:12 PM » |
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Vinny, we'll return your vehicles next week. Just gotta gas them up. Thanks for letting us use them Thanks. The Cadillac takes premium, and I'm pretty sure I left my Kapex in the trunk of the Ranger Rover. |
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Peter James
Festool Dealer
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Location: USA Member Since: Feb 2012
Posts: 282
Festool Dealer Right Outside NYC - 10,000 Sq Feet
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« Reply #25 on: August 01, 2012, 12:17 PM » |
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The Kapex is the one you "rarely use", right? |
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