Festool Stimulus Program Needed

[kevinculle]

Price is simply a tool to balance supply and demand.  A manufacturer whose supply of product is always oversold (on backorder) either needs to raise the price or increase production.  Conversely a manufacturer whose product is always undersold (piling up in stores and warehouses) either needs to lower the price or reduce production.  Festool traditionally has been a fixed price manufacturer with a pattern of annual price increases, for this to be a stable operating pattern implies that Festool as a practice tend to undersupply the market for their products to support this marketing strategy.  The black swan economic event we now find ourselves in may or may not influence Festool's pricing.  If the factory is closed due to the pandemic then supply is fixed at units in inventory and a price cut is not going to improve sales in the long term.  If the factory is still producing and the economic disruption has reduced sales than a price cut might be useful.  Whether you as a customer choose to negotiate or haggle on prices is largely irrelevant, manufacturers still are compelled to balance supply and demand with pricing.

 

[grbmds]

Apparently Festool isn't as bad and greedy a company as some think as I read a post from Shane Holland today indicating that Festool is freezing prices with no April price increase. I think I read it was for 2 years also. Just thought you all might want to know.

 

[peter halle]

Apparently Festool isn't as bad and greedy a company as some think as I read a post from Shane Holland today indicating that Festool is freezing prices with no April price increase. I think I read it was for 2 years also. Just thought you all might want to know.

Regarding ...two years also.  That is not what the statement said.  It stated in part: "To do so, at this time we are enacting a price freeze on all Festool products, extending Festool’s marketplace-pricing that has now been in place for two years."

Peter

 

[greg mann]

Just Thinking

With the more than usual time being spent at home these days I was thinking.  Instead of Corporate Festool about to implement the yearly price increase they should be working on a price reduction stimulus package. 

With the markets fluctuations and declines someone might think this is not a good time to increase prices.  What they might think of doing is doing a 30 day price reduction of say 10% across the board to possibly stimulate sales. 

What do you think
Thanks

You got a better chance sailing around the world in a little boat  [poke]

 

[ChuckS]

Apparently Festool isn't as bad and greedy a company as some think as I read a post from Shane Holland today indicating that Festool is freezing prices with no April price increase. I think I read it was for 2 years also. Just thought you all might want to know.

Regarding ...two years also.  That is not what the statement said.  It stated in part: "To do so, at this time we are enacting a price freeze on all Festool products, extending Festool’s marketplace-pricing that has now been in place for two years."

Peter

It would have been clear if the statement had been worded like this:

"To do so, at this time we are enacting a price freeze on all Festool products, extending a Festool’s marketplace-pricing practice that has now been in place for two years."

 

[FestitaMakool]

RE: Negotiations.

Interesting opinions to read here. As mentioned negotiating are secured in culture, mostly that is. It was not long ago that negotiation wasn’t really accepted in my country either. Except for buying second hand/pre owned. Nowadays it is more accepted also in trades and in stores. We don’t as mentioned by others here, negotiate in grocery stores, even within goods only assumed having a fixed price. However, typical hardware stores and alike have come to offer a “competitive price guarantee” - Wich means that you as a customer can approach a store representative with a polite question if they will match a price seen ie in online web shops and similar and documented by you. It is from a stores perspective a solid point of keeping their regular customers close and make sure they will buy again.

I have practiced negotiation for almost my whole life. But, it is an art. And it is not more secret than being polite, respectful and approach with a friendly attitude. End goal is to make what is believed to be a good deal that both parties are happy with: Seller is left with the expression of a good sale, keeping (for most times) a healthy profit, and/or a happy customer who will buy from them again. The buyer is leaving with a price he or she believes is a competitive price, from a preferred seller. That combined with service and mutual understanding can lead to very loyal customer relations. If seller politely claims he or she cannot negotiate on the price - accept it, buy at the regular price or go away and friendly accepting the decline.

There’s a rule that says that customers are not more loyal than 3%. This is a good rule to remember, but add service and a good seller/buyer experience to the deal and you might get away with even a lot more than 3%. As for you sellers in here, contributing to the forum, you know that your contribution counts. And with times like the one we all are affected by now, I’m sure there’s a will to support regular and local dealers making a difference.
I do, locally. But I’m still a bit baffled by my regular stores that are closed and relying on their web shop, which is nation wide, so are all the other stores, then the 3% suddenly counts  [blink]

 

[kevinculle]

In the face of a global pandemic driven economic crisis Festool courageously decides NOT to raise prices...no, really, I just read that!

 

[Spandex]

In the face of a global pandemic driven economic crisis Festool courageously decides NOT to raise prices...no, really, I just read that!

No, really, I don’t think you did just read that. No one has tried to characterise it as ‘courageous’ - not Festool, or anyone on this forum. Festool have simply said they’re no longer going ahead with a previously announced price increase.

 

[ChuckS]

This ISN'T the first time Festool has frozen its prices and not introduced an annual increase.

NOW is the time to order what you need provided you have the money to help your favorite merchants and vendors...every dollar counts at this moment for them. News: over 3 mn people have lost their jobs in the past week or two in the US; over one million in Canada. [scared] [scared] [scared]

 

[grbmds]

Regardless of how it was worded, prices are being frozen at current levels for 2 years. For some, this is a positive. For others, it appears that it isn't. I guess how you view it depends on your personal experience with Festool. Mine has been positive. I doubt they believe or are even trying to convince anyone they are saving the world by freezing their prices.

 

[ChuckS]

Regardless of how it was worded, prices are being frozen at current levels for 2 years.
Snip.

[huh]

The Festool's statement itself does NOT say that.

The freezing may or may not last for two years, depending on how and when the current virus crisis ends.

 

[RNEMTP]

https://festools-online.com/a-message-from-festool

 

[Michael Kellough]

Festool skipped the nearly annual price increase last year so the prices have remained steady for the past two years. They’ve decided to keep prices the same going forward for an undetermined time.

 

[jonnyrocket]

I keep coming back to this thread hoping that I’ll see some announcement similar to the tool trade in promo from last year.  [big grin]

 

[PeterK]

I was hoping for the return of the owner loyalty 20% sale they had years ago!!
[big grin] [mad]

 

[grbmds]

Regardless of how it was worded, prices are being frozen at current levels for 2 years.
Snip.

[huh]

The Festool's statement itself does NOT say that.

The freezing may or may not last for two years, depending on how and when the current virus crisis ends.

Probably 2 years then . .  .

 

[ChuckS]

Agreed. Probably 2, and possibly 3, given the fact that the US now leads in the # of infected cases in the world.

 

[semenza]

Lots of guesstimating and speculating based on assumptions and misreadings.

  All the price freeze announcement says is that prices have been frozen for NOW.  Including the April 2020 increase. That's it.

  No indication of two years or three years  going forward.  No indication of duration  going forward.  No tie to how long the COVID-19 outbreak lasts. 

    Just - at this time prices have been frozen.

    The reason given for the freeze is COVID-19 , and economic disruption. But no indication of how long the freeze will last.

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From Festool-----

            At Festool, our priority during this critical period, especially, is on the health and well-being of our employees, our dealers and our customers. We know these are uncertain times for individuals and businesses. From the threat of COVID-19 to economic disruptions and uncertainties, we are responding quickly and maintaining our key priorities: first, to protect the people who count on us.

As we continue to prioritize the people who make Festool great, we also seek to bring stability to the business marketplace. To do so, at this time we are enacting a price freeze on all Festool products, extending Festool’s marketplace-pricing that has now been in place for two years. This price freeze includes suspension of any forecasted price increases that were to be implemented for April 2020.

Thank you for your patience and support during these challenging times.
-------------------------------------------------------------------------------------------------------------------------------------

Seth

 

[ChuckS]

Lots of guesstimating and speculating based on assumptions Snip.
Seth

True...just for the sake of making some people feel happy. ;D