DeWalt Price Increase

jeh

Member
Joined
Jan 25, 2007
Messages
1,465
Just got an email from Acme Tools advising me to:

BEAT THE PRICE INCREASE - Buy now before prices go up on these DeWalt products!

They finally have taken the Festool route and start annual price increases. I except the other companies to follow suit.
 
Tool manufacturers often change prices and they go unnoticed because its usually not done across the board. Dewalt has not announced any pricing changes outside of the norm. I see 32 products with new "MAP" (minimum advertised price) for August. Sounds like a marketing ploy by Acme to me.  [scratch chin]
 
DeWalt, unlike Festool, does not enforce a uniform price across all retailers of its products.  As stated, it does have a MSRP.  Like every other company.  So any and all price increases announced by DeWalt mean nothing.  They don't control the price you pay at the retailer.  Each individual retailer controls the price they sell at.  The only price DeWalt controls is the wholesale price to each individual retailer.  And they likely have a different price for every retailer.  So if DeWalt increases wholesale prices 10% across the board, you may or may not see a 10% increase in retail prices to keep the margin the same for the retailer.  Or not because maybe some retailers have a solid margin and are willing to reduce that some to keep market share.

Maybe a good analogy would be car prices.  Ford and GM announce 10% sticker price increases on all cars.  The price printed on the sticker stuck on the window.  So all cars are instantly 10% more expensive?  Right?  Selling price on a car has a lot to do with how you negotiate, how the dealer negotiates, which car is being considered, time of month (close to the monthly cutoff for sales quota), size of dealer and their kick back from the manufacturer, etc., etc.
 
RussellS said:
DeWalt, unlike Festool, does not enforce a uniform price across all retailers of its products. 

This is not the case. They do have a MAP (minimum advertised price) policy which is very similar to Festool's pricing model. And it is enforced. However, it is only for a segment of their product line, usually the top selling products. So, out of maybe 3000 products only 400 might have a minimum price enforced. With Festool it's 100% with the exception of package deals and discontinued products.
 
Back
Top