Festool Price Increase - Now with handle correction!

[Ned]

No one's thrilled to be paying more, but these price changes seem reasonable.

Festool could announce, say, an across-the-board 15% increase, but instead there's a variation from item to item.  This suggests careful and detailed thinking about the pricing.

Of course the exchange rate doesn't help.

The cost of oil affects plastic items, and more subtly, everything shipped.

There are a few changes, such as that CT handle that seem odd.  Given the apparent item-by-item evaluation, I wonder what caused that particular increase.  I can imagine them crunching the numbers in Wendlingen and noticing the handle price just as we did.  "Hoo boy! Are we going to hear about this one!" (In German, of course.)

Ned

 

[alg]

I switched over completely to Festool recently because they are an investment that I can enjoy better than owning stock with Costco.
I was planning to buy a cabinet table saw (which would depreciate 30-50% the moment it leaves the store, require greater sink into another dust collector system, 200v, etc), instead I'm going to buy more Festool (total of 3 MFT 1080s and a TS75 for dedicated ripping).

I'm glad Festool chooses to raise prices and not compromise on design and quality, made in Germany means more than 10-25% increase.

 

[JayStPeter]

My ATF 48-tooth blade is getting dull.  I recall thinking that the prices of these blades made them disposable.  I remember them being just over $30 and figured it would cost around $25 to sharpen one.  So I figured I'd just buy a new one ... hmmm, it's been a while since I've looked at the price of those things.  Since I've got a dull WWII also, I'll include this in my shipment to forrest for a sharpening.

 

[Brice Burrell]

Be sure to check Bob's thread, Price correction on the vac handle.

 

[Ron Pegram]

Yep, I just got an email from Shane Holland on the matter. The McFeely's page has been updated as well. Here is Shane's email:

Festool Dealers,

I noticed that you have downloaded the 2008 Price List from the Festool Dealer Portal (FDP).  It has come to our attention that there was an error in the 2008 catalog price for the CT Handle (452 921).  The price should be $70 and has been updated in the price list on the FDP.  Please make the appropriate corrections in the list you downloaded or visit the FDP to download the updated list.

Our sincere apologies for the error.

Shane Holland

_________________________

Festool USA

Tooltechnic Systems, LLC

400 N. Enterprise Blvd.

Lebanon, IN 46052

 

[Ron Pegram]

I'll add one additional note to this.

I'm almost willing to bet that this mistake was caught because of conversation here. I can't prove it but that makes sense to me. It just goes to show the power of an active and involved Festool community.

 

[Dave Ronyak]

Or they could move production to the US and take advantage of the imbalance.

United States Festool sales likely accounts for a small percentage of Festool Global sales.  The US market at the moment is not large enough for Festool to make that investment. 

That's why it's in everyones interest that Festool USA sell more tools.   Then they can begin to expand their US catalog to offer more tool options. 

[/quote]

Yours is an interesting proposition.  I'm doing my little part on the slippery slope, and will probably buy more to beat the price increases.  Japanese and European car makers built plants in USA first to avoid import duties, and later to take advantage of lower cost skilled laborers in USA.  I have heard BMW execs state directly that they came to take advantage of lower costs in USA as their market in USA continued to grow.  I see no reason why Festool couldn't benefit from a factory in USA or another North American location.  I am presuming their market share will grow as people become more familiar with their products unique features.

Dave R.

 

[vteknical]

IMO Festool is years.........if ever......from tooling up in the US.  IMO they would probably first opt to build MFG'ing facilities like in Czech Republic or something, doubt that one too.  Building High End products is about quality control, Discerning Euro MFG's will not leave the fate of their company's bread and butter products to someone else.

My original comment about having to sell more in order for their catalog grow is based on my 11 years working for a German MFG. 
Importing items that are already in production in other markets to the US is very costly.  I like many would like to see their product line grow in the US, it's just a matter of sales and time.

Currently 1 Euro to Dollar 1.45 Some European companies are just breaking even with the exchange rate.  Some had the good foresight to buy currency when the exchange was much lower.  Unfortunately many did not buy enough thinking it would never exceed 1.20.

Sorry to get on a soapbox, thought to add some information to put the increase into perspective.

 

[Bob Marino]

Or they could move production to the US and take advantage of the imbalance.

United States Festool sales likely accounts for a small percentage of Festool Global sales.  The US market at the moment is not large enough for Festool to make that investment. 

That's why it's in everyones interest that Festool USA sell more tools.   Then they can begin to expand their US catalog to offer more tool options. 

Yours is an interesting proposition.  I'm doing my little part on the slippery slope, and will probably buy more to beat the price increases.  Japanese and European car makers built plants in USA first to avoid import duties, and later to take advantage of lower cost skilled laborers in USA.   I have heard BMW execs state directly that they came to take advantage of lower costs in USA as their market in USA continued to grow.  I see no reason why Festool couldn't benefit from a factory in USA or another North American location.  I am presuming their market share will grow as people become more familiar with their products unique features.

Dave R.
[/quote]

Dave,

I am not sure of, or privy to, Festool's sales, profits and long range plans, but Festool USA is Festool's fasted growing market (I know, if you sell 5 tools last year and 10 this year, you can claim your sales increased 100% ;D). I would bet  Festool USA is in the top 5 of Festool's markets and they have not even begun to reach anything near their potential here. I also would not be surprised (again, IMHO) if Festool did start building plants here within 5 years.

Bob

 

[chrisrosenb]

Liberty, Indiana would welcome a Festool factory. ;D

 

[Brice Burrell]

Bob, I think five years sounds optimistic, I could be wrong. I see a couple obstacles Festool may face in the US market in the next few years. The first is as we all have already talked is the declining dollar. The next thing that may really hurt Festool here is DeWalt and Makita with the introduction of their new line of saws. DeWalt is taking the system approach also with the router on the guide rail and I think Makita will soon follow suit. I bet we will see more and more tools outfitted with much improved dust collection from all of the competition. With some of Festool's uniqueness removed by the other brands it is going to be that much harder to grow. And when the competition's new tools hit Amazon, HomeDepot and Lowe's it will be an uphill battle. Don't get me wrong, some people will see through the marketing hype of DeWalt, Makita and whoever else comes in, they'll know the better value Festool offers. My guess is the new plunge cuts will cost nearly as much as the Festool but nowhere near the quality. With brand loyalty and the promise of the best price by the big retailers the US masses will flock to the competition. One other issue Festool will face, if the US economy slides downward the high priced tools will be the first things people stop buying. 

 

[Ned]

IMO Festool is years.........if ever......from tooling up in the US.  IMO they would probably first opt to build MFG'ing facilities like in Czech Republic or something, doubt that one too. 

Funny you should mention the Czech Republic.  I believe at least some Protools (a Festool sister company) are made in the Czech Republic, and I've been getting Festool-branded abrasives made there for some time.

I wouldn't hesitate for a moment to buy Czech-made tools, now that they're out from under communism.  They've got a quite respectable engineering tradition in their own right.

Ned

 

[Bob Marino]

Bob, I think five years sounds optimistic, I could be wrong. I see a couple obstacles Festool may face in the US market in the next few years. The first is as we all have already talked is the declining dollar. The next thing that may really hurt Festool here is DeWalt and Makita with the introduction of their new line of saws. DeWalt is taking the system approach also with the router on the guide rail and I think Makita will soon follow suit. I bet we will see more and more tools outfitted with much improved dust collection from all of the competition. With some of Festool's uniqueness removed by the other brands it is going to be that much harder to grow. And when the competition's new tools hit Amazon, HomeDepot and Lowe's it will be an uphill battle. Don't get me wrong, some people will see through the marketing hype of DeWalt, Makita and whoever else comes in, they'll know the better value Festool offers. My guess is the new plunge cuts will cost nearly as much as the Festool but nowhere near the quality. With brand loyalty and the promise of the best price by the big retailers the US masses will flock to the competition. One other issue Festool will face, if the US economy slides downward the high priced tools will be the first things people stop  buying. 

Brice,

Good points, but time will tell, I guess.

Bob

 

[Bob Marino]

IMO Festool is years.........if ever......from tooling up in the US.   IMO they would probably first opt to build MFG'ing facilities like in Czech Republic or something, doubt that one too. 

Funny you should mention the Czech Republic.  I believe at least some Protools (a Festool sister company) are made in the Czech Republic, and I've been getting Festool-branded abrasives made there for some time.

I wouldn't hesitate for a moment to buy Czech-made tools, now that they're out from under communism.  They've got a quite respectable engineering tradition in their own right.

Ned

Besides abrasives, the LS 130 Linear sander is made in the Czech Republic.

Bob

 

[greg mann]

Bob, I think five years sounds optimistic, I could be wrong. I see a couple obstacles Festool may face in the US market in the next few years. The first is as we all have already talked is the declining dollar.

Brice,

The declining dollar will increase the odds that Festool might manufacture here. As was pointed out earlier, American manufacturing is still alive and well. We are losing many more jobs to efficiency and productivity gains than to cheap labor. At one time we were all scared that Japan was going to erase our manufacturing base. It took two generations after WWII for them to go from cheap labor and cheap products to expensive labor and great products, two concepts not necessarily related to each other but occurring anyway. It is now cheaper for the Japanese to manufacture here and the quality has not suffered at all for it. The Euro makers have followed suit as well. My suspicion is that China will level out over the next 10/15 years as well. The speed at which things can happen here is an advantage to foreign manufacturers willing to move here. Being closely involved in the automotive manufacturing sector it never ceases to amaze me that US based makers are so eager to leave when their more successful foreign competition is moving in. Sure, there are many issues such as legacy costs and such but the US can be and still is a great place to manufacture high-end products, especially for a well organized and long view company like Festool.

 

[Brice Burrell]

Brice,

The declining dollar will increase the odds that Festool might manufacture here...........

  I agree, if they get that far. Festool will need to have considerable growth here before they can justify the investment to set up manufacturing in the US. In the mean time the declining dollar hurts that necessary growth, that was my point.

  What I'd like to see Festool USA do is start small and produce products that Festool the parent company won't. Things like square drive tips and Imperial drill bits just to name a few. How hard would it be to out source the production of a few simple products? This would show a real commitment to the US market, read US end users.

 

[Frank Pellow]

Festool USA  is a fast growing and large market for Festool. They feel they are not even close, nowhere near close, to attaining the market share potential here.  I would not be surpised if somewhere down the road, the tools for Festool USA will be manufactured here.

Bob

I sure wish they felt that way about Canada.  You people in the USA don't know know just how good you have it when purchasing Festool products.  As far as I can tell, the Festool USA prices are by far the lowest in the world.

 

[Frank Pellow]

Besides abrasives, the LS 130 Linear sander is made in the Czech Republic.

Bob

That's interesting.  I just checked my LS 130 and I now notice that, unlike all my other Festool tools that I checked, it does not have the words  'made in ...' on it.  Rather it does have the word 'Wendingen' on it and, according to my atlas, that is in Germany.  But I bought my sander about two and a half years ago.  Bob, is there now a 'made in the Czech Replubic' label in the sander? 

 

[wcmlutz]

I know the price increase will affect some of my purchasing decisions, I will probably not get the OF1400, since its price at $405 is stretching things a bit, at $450 it is out as an option. So I have started to consider other options.

The DTS400 price increase is minimal and the cost is still OK.

I realize that much of the benefit of the Festool tools is the system that ties them all together, such as the rails. I looked at the TS 55 and didn't like it, so I went in a different direction. Many of the other tool manufacturers are providing dust collection on their tools. I like my Festool sander mainly because it doesn't vibrate as much as my 5" PC sander. The dust collection was similar when connected to my Fein vac.

Mike

 

[greg mann]

Brice,

The declining dollar will increase the odds that Festool might manufacture here...........

  I agree, if they get that far. Festool will need to have considerable growth here before they can justify the investment to set up manufacturing in the US. In the mean time the declining dollar hurts that necessary growth, that was my point.

  What I'd like to see Festool USA do is start small and produce products that Festool the parent company won't. Things like square drive tips and Imperial drill bits just to name a few. How hard would it be to out source the production of a few simple products? This would show a real commitment to the US market, read US end users.

Yea, the good old square drive bits.  : I understand completely but in this case Festool probably buys from Wiha or PB Swiss and importing these to US is easy because they are so small. And, the SQ drive is really niche to this side of the pond so they won't set up here to make a product they usually outsource and for which they don't have expertise. I think coming here would be most useful if they produce here to bolster exports around the world, not just to supply US, even though it can be a big market. But the downside is producing here for export would/could cut into their home business and Festool seems committed to their own people. I applaud them for that. I wish more US based companies would have that attitude. Problem is, they are no longer US based but multi-national. It is short-sighted. Those corporations don't care where they make their products but they know the US market is where they will sell (for the most part). Can't do that forever, hoping the other guy will stay here and produce, thereby creating the income we North Americans need to buy the now imported products. Maybe it won't be that long before we think of Honda and Toyota as American companies and the Detroit Three as foreign.  :