Canadian pricing

[Frank Pellow]

While we're at it why don't we get Festool to change the USA pricing when the US dollar fluctuates in relation to German currency.  That makes about as much sense as adjusting Canadian prices to reflect fluctuations in the US dollar.  Maybe I just don't get it.  Hmmm.

I see my tounge-in-cheek suggestion was not received in the humorous way it was intended.  Pricing products in response to currency fluctuations is something that is simply not going to happen.  In just the past 4 months the exchange rate for Canadian to American went from .914 to .984, not in a straight line.  If you can cross the border, buy for less, and get back across without paying a import tariff, be happy.

How's the pricing on Festool in Mexico?

I might be happy, but I have more than one collegue who is a Canadian Festool dealer and they should not be happy.

 

[Cloudhook]

To me this is a very simple matter, Festool sets their Canadian pricing structure on their products as they see fit. I own many Festools and accessories and have only bought when the price premium was deemed fair and reasonable to me. As it stands now, I won't be purchasing any Festools.
I might add that I have purchased several Apple products in the past year.

 

[mastercabman]

Just curious,but what is the cost of living in Canada as opposed to USA? Minimum wage?  What's an average income for,let say,a carpenter,cabinet maker?
Price of gas?

 

[waynew]

This is why I am sticking with Festool for the moment. When you see employees like Shane making earnest efforts to help customers it makes my decision easier to stay with them, its good to know you will get heard if the need arises.
Having said that, since mid last year I decided not to make any more Canadian purchases until this currency situation is resolved. If I have too I will make the trip to the border, I put off buying the Kapex and ended up purchasing the Ridgid 12" but thats it, I'll be waiting on the sidelines to see how it goes from here. The currency change at the beginning of the year made a little difference but the price variance is still way too large for me to justifiably purchase from a Canadian supplier. If the Canadian dollar surpasses the US dollar then it would be way simpler to peg it at the US figure and be done with it.

Shane, thank you for being so responsive to this situation.

Wayne
Ontario, Canada

I really don't want to get into the debate going on here but I will say just a couple of things about the topic.

First, there was an adjustment made to Canadian pricing in January due to the exchange rates.  Secondly, we do listen to our customers despite some of the comments made in this thread.  In fact, I don't know of many companies that offer a public forum engaging in open dialog between the companies, dealers and customers.

Literally within moments of Andreas' post, I had sent a message to our Director of Sales in Canada to bring this conversation to his attention. Andreas, thank you for your feedback.

I take a lot of personal pride in working for a company that treats its customers, dealers and employees better than 99.99% of the companies out there. There are few companies that would go to the same extents as Festool to keep their dealers and customers happy.

 

[mouppe]

Shane,

Thanks for your response. It's good to know Festool is receiving our distress call and hopefully something can be done about this.

Another way to look at Canada/ US pricing is to compare it to two European countries such as France and Spain. Both countries share a border and it is easy to go from one to the other to buy goods.

Cost of a TS55 in France? E559.73
Cost of a TS55 in Spain? E560.28

Don't ask me where the 53c difference comes from!

I have never heard a good reason from any company as to why goods are so much more expensive in Canada than the US. Cars, furniture, toilet paper, anything. But as long as there is such a difference, and it is easy to circumvent the problem, I'll continue to buy in the US and not in Canada. The Canadian dollar would have to be at 80c to the dollar to make US and Canadian prices on the OF 1400 router the same today. Today the Canadian dollar hit 99c! In January when the adjustment was made the rate was 95c on average. We are not talking small amounts here, but massive percentage differences which make it really worthwhile to go to the US.

By the way, this is not a Festool-specific issue. This is everywhere. Porter-Cable 895 on Amazon? $244. My local tool shop? $349...on sale! You really have to laugh or you'll cry.

Richard.

 

[JohnDistai]

Having said that, since mid last year I decided not to make any more Canadian purchases until this currency situation is resolved. If I have too I will make the trip to the border, I put off buying the Kapex and ended up purchasing the Ridgid 12" but thats it, I'll be waiting on the sidelines to see how it goes from here. The currency change at the beginning of the year made a little difference but the price variance is still way too large for me to justifiably purchase from a Canadian supplier.

I think this is analogous to the eBay issue.  Price drives behavior.  Simple economics 101.  Canadians will go to U.S. dealers due to preferred pricing.  Festool claims to want dealers to compete on pricing.  Your local and more familiar dealer would probably give you better service than a distant dealer.  However, pricing differences drive where the customer shops.  These pricing differences in the U.S. and Canada are due to a third party influence.  There really isn't any control for it, other than to adjust for third party influences and lower the price.

I don't see how this is any different than sales on eBay.  A third party is (was) providing an influence which is (was) driving sales behavior.  The answer to any "unfairness" related to this was for more dealers to begin selling on eBay.  Before too many people get carried away with kissing Shane's ring for being "responsive" keep in mind that forwarding a link and writing a short email doesn't take much effort:

- Dear Canadian Sales Manager:
- There is some concern and complaints about Canadian pricing in the FOG forum.  Please see this link to follow the conversation.
- http:[link]
- Best Regards,
- FOG Moderator

There was recently some "responsiveness" regarding sales and third party pricing influences on eBay, and requests for other dealers to enter the eBay channel.  Instead of other dealers entering that channel and competing on an even playing field, Festool banned eBay sales.  Not the responsiveness I wanted.

 

[WarnerConstCo.]

[dead horse]

 

[score0matic]

While we're at it why don't we get Festool to change the USA pricing when the US dollar fluctuates in relation to German currency.  That makes about as much sense as adjusting Canadian prices to reflect fluctuations in the US dollar.  Maybe I just don't get it.  Hmmm.

David
The Canadians  [wink] routinely are "blackmarketing" their tools from the US because they are cheaper here.    They are cheaper here than in Germany.    If you really believe your straw man argument is valid, that would explain your conclusion.

Craig

EDIT:

[quote author=Daviddubya]
I see my tounge-in-cheek suggestion was not received in the humorous way it was intended.  Pricing products in response to currency fluctuations is something that is simply not going to happen.  In just the past 4 months the exchange rate for Canadian to American went from .914 to .984, not in a straight line.  If you can cross the border, buy for less, and get back across without paying a import tariff, be happy.
[/quote]

Sorry David
I didn't recognize you were typing humorously (one of the pitfalls of a written forum)  please excuse my response, it was written under misguided understanding that you were serious.

 

[harry_]

why am I thinking about prescription drugs right now?

 

[justinmcf]

Before too many people get carried away with kissing Shane's ring for being "responsive" keep in mind that forwarding a link and writing a short email doesn't take much effort:

i personally think the only person getting carried away is you john.
i appreciate the fact that shane and christian spend as much time and effort on this forum.
try getting this same service from a company such as bosch, hilti or makita......

i do not appreciate your negative attitude.
if you cannot contribute to the forum in the spirit of helping others, why bother posting?

regards, justin.

 

[Bob Marino]

Before too many people get carried away with kissing Shane's ring for being "responsive" keep in mind that forwarding a link and writing a short email doesn't take much effort:

i personally think the only person getting carried away is you john.
i appreciate the fact that shane and christian spend as much time and effort on this forum.
try getting this same service from a company such as bosch, hilti or makita......

i do not appreciate your negative attitude.
if you cannot contribute to the forum in the spirit of helping others, why bother posting?

regards, justin.

  Well said, Justin.
Shane doesn't need me too defend him, but I have known, (or rather known of) Shane since he used to be the IT man for a major Festool dealer and would, 9 times out of 10, "beat me to the punch" with upcoming Festool new/info/promos, etc; posting here on the FOG and on his company's site waaaaaaaaaaaaaaaaaaaaay after business hours. He later joined the Festool ranks. It was that company's loss and Festool's gain. I had a healthy respect for Shane as a "competitor" then and he has earned, through damn hard work and diligence the respect of the people that know and work with him as well as, I am guessing, the majority of FOG members.
As regards Festool's treating employees, customers and dealers better than 99.99% of other companies,  I take  that type of number not as a literal pronouncement but more as it was (I think) meant - a vernacularization.  I have been dealing with, speaking with and and many times personally meeting with, a bunch of those employees and to say they "like" their job/company is to do them/Festool a disservice. What have been the postings and impressions of Festool (employees/CEO/ general atmosphere)  from those lucky (but growing) number of folks attending the Festool training seminars? Uniformly positive...and I don't think it was a case of Festool putting out the "white linens for when n company comes over" either.

Bob