Festool USA Suspends Direct Product Sales Effective April 2008

[Administrator_JSVN]

Please review the information below regarding a policy change taking place April 1st, 2008.

Dear Festool Customer,

It's been a pleasure serving you directly ever since we introduced Festool to the U.S market. However, effective April 1st, 2008, our dealers will sell Festool tools, consumables and accessories exclusively and you won?t be able to purchase them directly through Festool USA anymore. We will continue to offer spare parts and repair service to you directly after April 1st, 2008, in order to guarantee our commitment to the best service in the industry. We will also continue to answer all your questions regarding our products. Please feel free to give us a call at
1-888-337-8600 from 8 am to 8 pm Eastern Standard Time or visit our website at www.festoolusa.com.

We felt that it was necessary to first develop a strong nationwide dealer network that could adequately service our customers before we stop selling directly. We now think that time has come and we feel that the needs of our customers can be best served by our dealers. It is detrimental to the commitment of our dealers when we compete with them for orders.

Please check the back of the Festool catalog for a listing of local and online Festool dealers. You can also visit our website at www.festoolusa.com/dealers in order to find online dealers and Festool dealers in your area. Find the dealer of your choice and start saving on shipping for Festool products today!

Thank you for your business and helping us to grow in the U.S. market.

 

[Frank Pellow]

Now that we will be buying direct from merchants and some of those merchants do ship to Canada, does that mean that Festoll USA will no longer ban sales to people with Canadian addresses?

 

[alg]

Festool USA has strict rules prohibiting USA dealers from selling to Canadians.
It is what it is.

Of course, nothing keeps you from coming across the border and paying cash. I just don't know how you would register the item without getting the USA dealer in big trouble.

This topic has come up in discussions among local Seattle dealers. As a local Seattle buyer, I don't want you getting my local dealers in trouble.

 

[Ned]

Festool USA has strict rules prohibiting USA dealers from selling to Canadians.

But don't take it personally, Frank.  I'm sure Festool forbids Hafele Canada to sell to Americans. 

Ned

 

[alg]

That's not a bad idea in an evil sort of way. We can help our neighbors by seeing if the death penalty applies to Canadian dealers selling to USA. Maybe that will encourage them to provide equal value and service.

 

[kgregc]

Festool USA has strict rules prohibiting USA dealers from selling to Canadians.
It is what it is.

So if a customer walks into a Rockler store here in Seattle and picks out a Festool product, and the sales clerk finds out he is from Vancouver, BC....Festool requires the clerk to refuse to sell to him?  : If I were the customer, I would have a problem with that and might talk to my "people"...

 

[alg]

You better talk to your people. And don't blame the poor Rockler clerk.

I can understand Festool's position in protecting their dealer network.

 

[Frank Pellow]

Festool USA has strict rules prohibiting USA dealers from selling to Canadians.
It is what it is.

So if a customer walks into a Rockler store here in Seattle and picks out a Festool product, and the sales clerk finds out he is from Vancouver, BC....Festool requires the clerk to refuse to sell to him?  : If I were the customer, I would have a problem with that and might talk to my "people"...

It's not selling to Canadians that they prohibit.  It's shipping to a Canadian address.

 

[Frank Pellow]

Festool USA has strict rules prohibiting USA dealers from selling to Canadians.
It is what it is.

Of course, nothing keeps you from coming across the border and paying cash. I just don't know how you would register the item without getting the USA dealer in big trouble.

This topic has come up in discussions among local Seattle dealers. As a local Seattle buyer, I don't want you getting my local dealers in trouble.

I know that this restriction has applied for a couple of years, but my hope is that, with this change, the restriction will be lifted.

 

[alg]

You can always use a USA address. I think they don't like USA dealers to sell to anyone (regardless of nationality) who has a Canadian address.

 

[Dan Clermont]

If their is someone in Canada who wants a tool before the prices increase at the end of the month I'd be more then happy to pick it up on the US side, clear customs and ship it north.

I won't add any fees or anything like that. Just want to help out a fellow Canadian who may not live close to the border.

If this post is out of line I ask Mathew to remove it

Dan Clermont

 

[Dan Clark]

In my long and somewhat less-than-distinguished career, I spent several years in product marketing for a big company (DEC).  I spent a lot of time in Distribution Channel management - working with vendors to ensure that they had the products and information needed. 

One of the worst problems possible is "Channel Conflict" - the company selling directly to the same customers that the Dealers sell to.  It is EXTREMELY difficult to get information to the end user and to get information about the end-user.  Dealers NEVER released that information unless they absolutely were forced to do it.  Many times it was extremely difficult to get them to even talk with me.

IMO, this is a very strong, positive move by Festool USA.  The Dealer channel is robust, it is HIGHLY regarded, and it is committed to customer satisfaction.  IMO, Festool gains a lot, cuts some expenses, and loses nothing.

Also, Festool USA has a direct link to US customer and can do so with NO fear from dealers that they are poaching!  Post an announcement here and hours BEFORE the announcement, they get feedback. ;D  They ask questions and they get immediate feedback.  And Dealers completely support this.

Festool USA... Excellent move!!!

Dan.

 

[alg]

Good to reset this thread back to the main intent.  This announcement shows Festool understands its best interests are served by developing and growing with its dealer channel (and not by competing with their sales).  The timing is strategic to coincide with the launch of the new products. You can tell that behind the scenes, a lot of effort is focused on new launches - getting dealers ready, trained and ensuring inventory and shipping are on track.  This is no different than doing a major software release. Although, this case, there are several including the Kapex which is near. It's anxious times. 

The changes that are evident show a lot of care to doing it right.    As customers, we are a big key and need to help, communicating our concerns and showing our intentions in supporting these new products.  I am taking steps today to get ready for the Kapex, my number 1 target for now.

 

[Dave Rudy]

In my long and somewhat less-than-distinguished career, I spent several years in product marketing for a big company (DEC).  I spent a lot of time in Distribution Channel management - working with vendors to ensure that they had the products and information needed. 

One of the worst problems possible is "Channel Conflict" - the company selling directly to the same customers that the Dealers sell to.  It is EXTREMELY difficult to get information to the end user and to get information about the end-user.  Dealers NEVER released that information unless they absolutely were forced to do it.  Many times it was extremely difficult to get them to even talk with me.

IMO, this is a very strong, positive move by Festool USA.  The Dealer channel is robust, it is HIGHLY regarded, and it is committed to customer satisfaction.  IMO, Festool gains a lot, cuts some expenses, and loses nothing.

Also, Festool USA has a direct link to US customer and can do so with NO fear from dealers that they are poaching!  Post an announcement here and hours BEFORE the announcement, they get feedback. ;D  They ask questions and they get immediate feedback.  And Dealers completely support this.

Festool USA... Excellent move!!!

Dan.

Well said, Dan.

 

[Ned]

I too agree with what Dan said, and that he said it well.

The supposed conflict between Festool and dealers was perhaps more apparent than real.  It was my understanding that Festool gave credit for the sale to your dealer, if you had one on record.

A few years back it made sense to order directly from Festool--why place the order with someone who apparently had no better access to availability and stock level information than you had?  I expect to know immediately whether something's available when I'm placing the order, not as a phone call later.  This is important information, since one item out-of-stock might affect the choices in the rest of the order, or whether the order is placed at all.  Welcome to 21st century distribution.

Both Festool and their dealers have improved their systems so that now this is just a note about the past, not a current complaint.

Ned

 

[Dan Clermont]

Now that we will be buying direct from merchants and some of those merchants do ship to Canada, does that mean that Festoll USA will no longer ban sales to people with Canadian addresses?

Frank

Say you buy a couple hundred bucks worth of Lie Nielsen planes from The Japan Woodworker in California and you want a C12 drill shipped as well to a Canadian address they won't do it. They'll ship you the planes but will not ship you anything Festool.

I tried it a long, long time ago.

Dan Clermont

 

[Frank Pellow]

Now that we will be buying direct from merchants and some of those merchants do ship to Canada, does that mean that Festoll USA will no longer ban sales to people with Canadian addresses?

Frank

Say you buy a couple hundred bucks worth of Lie Nielsen planes from The Japan Woodworker in California and you want a C12 drill shipped as well to a Canadian address they won't do it. They'll ship you the planes but will not ship you anything Festool.

I tried it a long, long time ago.

Dan Clermont

But a long, long, long time ago they would have shipped the tool.  That's how I got many of mine.  My hope is that we will return to those days.  Hafele Canada has not warrented such a protection of their monopoly.  Hardly anyone at Hafele Canada knows anything about Festool and could care less if tools were shipped to Canadian addresses.

I would still like to hear from someone at Festool about this.

 

[Christian93117]

Frank,

We will stop selling directly to end customers in the US. This has nothing to do with selling in Canada. Canada is
a separate topic that will be addressed separately. I think you will see more buying options in Canada in the
near future.

Christian

 

[Frank Pellow]

Frank,

We will stop selling directly to end customers in the US. This has nothing to do with selling in Canada. Canada is
a separate topic that will be addressed separately. I think you will see more buying options in Canada in the
near future.

Christian

Thanks Christian, that is indeed good news.    I am particularly optimistic since you used the word near.

 

[graphex]

This is no different than doing a major software release.

Except with software you can push out the poorly tested beta and later send out an update (sometimes even for a fee...). Having to recall a product after launch because it has something wrong is a big problem!

I'm actually hopeful that Festool not doing direct sales in the US is a good thing. I think it will be good unless it results in less detail on the Festool website, or in the Festool catalog, or ends up creating more variance in the pricing you get from dealers.

The current model has everything locked at the Festool catalog price. I wonder if the 2008 catalog is going to come out without any pricing in it? If it does, that would really annoy me. I hate that "if you have to ask, you can't afford it" mentality. Of course I can't afford it!  :-\
I really like that I don't have to search 15 different places to find detailed product info (including pricing). I also like that I can go to whatever dealer I want to and know that I'll be paying the same price. The only thing I'm torn about is that when I buy a new tool, I almost always buy it from an online dealer, as opposed to the really good dealer down the street. I'd love to give my money to the guy down the street, but I'd have to also pay >7% extra to the government in tax. If the dealer pricing structure became at all variable, I hope that is the only place for wiggle room - showroom prices versus delivered prices to keep the brick and mortar tool stores happy.

(let's not mention Use Tax ok?)