SittingElf
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- May 28, 2013
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jmbfestool said:SittingElf said:Brice Burrell said:pigeonfarmboy said:I have an interesting story about this:
So last September I lost my entire woodshop in a garage fire. I had accumulated at least 80% of all Festool products available. (Multiples of some) All of these items were purchased from the same local shop. (I like to support local businesses) When I went in to replace all items and add a few new pieces I was offered no discount. The salesman tried using the excuse of Festool's MAP pricing. I happen to earn my living being employed in a marketing department so this excuse just didn't fly for me. Minimum Advertised Price has nothing to do with what a shop is able to charge at the register to a loyal customer. Maybe there's a special policy enforced by Festool to it's dealer network that goes beyond the definition of MAP?
How many times does a shop sell $18k+ of Festool product to the same guy TWICE!?
I don't make it a habit to ever ask or assume any kind of discount will happen. In fact I find when I'm making large purchases it's usually offered to me instead. I know when I ran a small business, my best customers were well taken care of.
Welcome to the FOG. Bummer about the fire.
As far as Festool dealer policy I admit I don't know the details. That said is it well known that N. American Festool dealers are not allowed to discount, period. It is not a MAP deal so don't feel short changed by Festool. Of course there really isn't anything to prevent dealers from offering freebies or discount on non-Festool items paired with a large Festool purchase.
Brice,
I'm not sure your statement is absolutely true. The Sherman Anti-Trust act would seem to forbid manufacturers from telling their distributors and retailers what price they are allowed to sell a product for. They CAN limit advertised pricing, but I believe they would be in violation of Federal Law if they "required" retailers to actually sell the products at a given price point.
That being said, companies like Festool can certainly make life hard on a retailer that doesn't toe the line, and frankly they don't need to because all the retailers clearly don't see the need to discount, but I think Festool and others would be in deep trouble if they pulled someone's authorized status for quietly discounting, as that WOULD run up against Sherman.
My two cents anyway.
Cheers,
Frank
Like Alex said.
Festool use to force dealers in the UK to price fix but not that long ago Festool got a telling off. Now we can get festool a lot cheaper in the UK. Not long after Festool got a telling off! The Internet dealers dropped the prices.
My regular dealer soon lost interest in selling Festool because the profit margins had fallen dramatically due to internet dealers selling it at low prices.
From what I have been told festool have changed tactic and are trying to regain control over pricing by not allowing dealers to buying huge quantities of festool tools. I assume this is to stop them making little profit on each tool but sell in large quantity to make up for it.
In the UK like Alex said dealers would just sell you the tool for less but print the receipt out at full price.
I am revisiting this subject to call out a significant RARE error on my part. (Blame it on age-related dementia!)
Up until 2007, the statement I made was absolutely true. Vertical price-fixing by manufacturers was illegal and subject to both civil and criminal action. The Supreme Court overturned long-standing law that forbade fixing retail pricing by manufacturers. The SCOTUS effectively changed the law and allows manufacturers to set minimum retail pricing by their dealers and distributors. This obviously is detrimental to the consumer, but allows the manufacturers to protect a luxury, or valued brand by their ability to prevent their dealers from discounting their products. The laws in the EU...specifically the U.K. may differ, but a Roberts-led court overturned more than 100 years of established law, stating that our modern society and technology made the existing law archaic and damaging to manufacturers.
I have been wrong before, but it is so rare that I had to drink a whole bottle of wine to calm myself after the realization of my error! [crying]
I might point out, however, that I was right...well... up until 2007! [embarassed]
Here's a summary of the 2007 ruling.
Supreme Court allows Price Fixing
Embarrassed,
Frank