Festool Canada

[Alex2]

Hi,

Have you noticed the sharp increase in festool dealers in Canada recently.... There was Hafele before, which was providing a terrible service. Then Dan Clermont (excellent service BTW) came on the map which was a very good thing.. Then in the last months, I think I've seen at least 6 new dealers right here in Canada... It's the invasion... I will not be able to resist it anymore.. I will have to buy more green stuff !!!
Just curious about what Festool has in mind for Canada.. BTW, will they permit a drop in canadian prices ? Because we're easily 30% over US prices after taking into account the exchange rate.

Cheers Alex

 

[tDot]

I agree, having a proper Festool network here in Canada is awesome, and I'll second that Dan is an excellent rep to have promote the brand.  However, the prices are pretty tough to stomach, and in my view will act as an even more significant barrier to Festool entering into this market then it was in the US.  We are in a world market and it is pretty easy for people to shop across the border.

 

[Oldwood]

I agree with the pricing disparity being a big issue. With the Canadian dollar almost at par a 30% increase is a little hard to swallow!
A interesting fact about Canada is (90% of the population is concentrated within 160 km of the US border) I think we can expect a lot of cross border shopping which will benefit the US retailers.

 

[Jimhart]

Curious, how much, if any, of the 30% is VAT?

 

[Dan Clermont]

Thanks for all the positive comments  ;D

You are all making me blush!!

My retail store is very focused on Festool and I enjoy using the tools as well.

Take Care
Dan Clermont

 

[TheToolPlace]

We are one of the new Festool Dealers that you speak of!  It's been great to be a part of a growing network in Canada.  I hope we can prove ourselves to be in the same league as some of the other great dealers who frequent this forum.  I haven't met Dan Clermont yet, but it's great to see such a loyal group of Festool users who are so supportive of their dealer.  Way to go Dan!

As far as pricing goes, it is something that we run into every day and have been bugging Festool Canada to do a little more to get the prices more in line with the USA.  Like Oldwood said, 90% of our population is within a couple hours of the border. 

Thanks,

Chad

 

[Oldwood]

Hi Jim.

In Canada we have GST (goods & services tax) and PST provincial sales tax. Both of those go on top of the 30% increase to Canadian customers. [eek]

Gerry

 

[Jesus Aleman]

In all fairness the price disparity applies to all other goods as well.  I travel frequently for business to the US and make many purchases down there (when I can bring them back on the plane) because of the price and tax difference. There are very few items that are cheaper or at part in Canada compared to the US.  One surprising one is camera equipment, videocameras is a different story. 

I'll give you an example of disparity, a while back there was this big issue with cars.  The same car would cost 20 to 30% more in Niagara Falls, Ontario compared to Niagara Falls, NY with the Canadian dollar at parity.  It would cost about 1-2k to get the car safety-retrofitted and legalized here in Canada (including duties and taxes). All in, you would still save 5-15k depending on the car.... and BTW, you have greater selection of models and features in the US.  However, with a few exceptions, car manufacturers would only honor the car warranty in the country of purchase.  Not a lot of people wanted to drive a car without a warranty.

Another example, there have been endless debates about the Festool vs Bosch jigsaws because they are of similar quality, but one is half price...  in the US.  Well, here in Canada, there is typically a 50 dollar difference between the jigsaws and the parts for one are more readily available (I'll let you guess which one. Name starts with F).

An the really ridiculous one... you even noticed that magazines and books have a price in US and Canadian dollars.  Well, when we were at parity a few years ago.  Book sellers would refuse to adjust the price.  They were charging cover price (Canadian dollars).

Unfortunately, for our pockets Canada is not viewed as an extension of the US market by retailers.  This is a godsend in many other ways.  The cost of doing business in the US is that you have to lower prices and make it on volume.  It is not really that goods are more expensive in Canada.  They are lower in the US to remain competitive.

All in all, I am happy that Festool is in Canada.  Dan is a great dealer.. but he needs to move to Ontario (with his tools).

JGA.

 

[Frank Pellow]

Curious, how much, if any, of the 30% is VAT?

None.  We pay taxes in addition to the list price.

We do have value added taxes in Canada, but they are called Goods and Service Tax (GST) and Provincial Sales Tax (PST).  GST is country wide and is 5%.  Provincial Sales Tax varies by province just as and State Sales Tax varies by state in the USA.  In Ontario PST is 8 percent; in Alberta, it is nothing.

 

[Dan Clermont]

Next year we will have HST (Harmonized Sales Tax) and that will combine the taxes for each province. It will be more like the VAT however it will vary from province to province based on the local PST.

Of course, it won't be built into the price like the VAT is in Europe.

Dan Clermont

 

[Alex2]

I liked the comparison with cars.... But since there's no need to retrofit Festool tools for the canadian market, the smell coming from a brand new US Festool systainer should be quite the same from one bought directly in Canada All these systainers remind me of my old lego boxes from the '70 .. hours of endless play ...

 

[EcoFurniture]

I'm with you guys, Dan is the man! Called him this morning at 8am and was expecting an answering machine. Nope, Dan picked up right away and after a short conversation I again, got some amazing customer service in form of a next day spare part delivery!

Thanks Dan!

 

[Dan Clermont]

I'm with you guys, Dan is the man! Called him this morning at 8am and was expecting an answering machine. Nope, Dan picked up right away and after a short conversation I again, got some amazing customer service in form of a next day spare part delivery!

Thanks Dan!

Your parts will be there in the morning!!!

To be honest, my coffee machine at the shop is awesome and I prefer to get there early so I can start the day off right.

Was there late tonight as Mirko was in the store picking up some accessories and .... well.... drinking my coffee.  ;D

Dan Clermont

Dan

 

[Frank Pellow]

Dan, it's a long way to go for a coffee, but I expect that I will have one in your store sometime in 2010.

 

[TheToolPlace]

To be honest, my coffee machine at the shop is awesome and I prefer to get there early so I can start the day off right.

Was there late tonight as Mirko was in the store picking up some accessories and .... well.... drinking my coffee.  ;D

Dan Clermont

Not to go too off topic, but what sort of fancy coffee maker do you have at your shop?  We've just have a plain industrial drip machine.  Maybe Festool needs to come out with a limited edition coffee maker?

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Thanks,

Chad

 

[Dan Clermont]

I kinda have the KAPEX of Coffee/ Latte machines. Grind free, perfect cups, repeatable cups, quiet.

We ran outta coffee beans today  [embarassed]

Gonna have to get some more in the morning.

Dan Clermont

 

[Oldwood]

I must say I do agree it is good to have good Festool dealers in Canada. I have recently purchased $3000.00 plus of tools in the last month or so. I have also talked a couple of fellow woodworkers into purchases by demonstrating my new tools. I have received good service from both the dealers I purchased from and I understand they have no control over the price the tools are sold for.

When the current pricing was set for Festool Canada the Can dollar was around $0.75 USD. I can guarantee if the pricing was set when the Can dollar was at $1.10 US and the dollar dropped to $.70 Festool would move very quickly to deal with that issue. On my $3000.00 purchase I could have saved $900.00 by driving south instead of north to make my purchases. The US border is closer than my nearest Canadian dealer.

Now me and my fellow woodworkers have discovered the Festool System it is inevitable we all will want more tools. With 4 or 5 people buying tools $30,000.00 is not inconceivable. We can save close to $10,000.00 by driving south or sending the product to a relative in the US to redirect to us.
We want to support our Canadian dealers but this is our buisness and $10,000.00 will buy a lot of Fine Woodworking mags even at Canadian pricing.

I think the best thing Festool could do to support their Canadian dealers is to have the Canadian prices reflect the strength of the Canadian dollar.
Even the book sellers started selling books in Canada for US prices the last time our dollar was at par.
It also gets to the point where it is a matter of principal not to let any company take advantage by gouging you.

FWIW
Gerry

 

[dyancey]

Re: Coffee maker. Look on the German Website.