Birdhunter said:
Take it easy. I am referring to the race to the bottom on price at the big box stores. You do know how the big box stores work right? They lock in lower and lower prices by pressuring the manufacturers to squeeze a little here or little there to lower the price. The manufacturers know they have to tow the line or the store might drop them and being dropped out is a big deal. At those stores it is all about the price and nothing else and the only way to go lower is China, Vietnam, etc or lower build quality or use lesser materials.
Festool does not make cheap stuff period and they won't. They also raise prices each year which would never fly at a big box store. Quality never comes cheap. Most of the big box store customers are homeowners and they don't buy or expect to be able to buy expensive tools there. Most would not believe that a drill could cost $500 because how could it when they can buy 4 tools for $200 or $300 or a full-size drill press for $300.
When you add cheap anything to your offerings you have to make compromises (quality, customer service, and margin) and you don't do that to premium brands because once you start you can't turn back the clock. Some would say "They could make it up with volume." by being at the big box store, but that is rarely, if ever, the case.
The comparison with Apple is a good one. They have a premium only phone and control 90%+ of the profits in that industry. While they want everyone to buy their phones they are not willing to lower the quality and price to get that last 10% or so. They maintain hefty margins on their other items as well by not trolling the bottom and they take care of their customers, much like Festool does.
