My favorite online retailer is Amazon. I live in a rural area and can get just about anything I need in a couple days using my Amazon Prime account. When I logged in to the site recently, some of the items "Inspired" by my recent browsing included a number of Festools. What caught my eye?these items included Prime shipping! This indicates to me that Amazon is carrying these items directly in inventory, instead of through an affiliated "real" Festool dealer.
This doesn't make sense. From my understanding, Festool has justified its price fixing by emphasizing that dealers compete based on service, not price. Further, high service dealers are always available to provide expert advice, actually SELL the brand's unique features and functionality, and generally evangelize Festool. This is readily apparent from dealer participation on FOG and through email/phone conversations with Festool dealers. Amazon provides none of these services.
So, why distribute through Amazon? And, if Amazon is OK, why not Home Depot or Walmart. All three of these retailers provide the same level of value-added service (i.e., none).
There are plenty of high service internet dealers already. It doesn't make sense to increase their competition by giving the product to a no service dealer like Amazon. As I've said in the past, if I'm not getting high service, then I certainly don't want to pay for it. Amazon is benefiting from the good reputation high service dealers have built for Festool...but at the expense of lost business to these same dealers. Where I come from, what Festool is doing is called "Biting off the hand that feeds you."
This doesn't make sense. From my understanding, Festool has justified its price fixing by emphasizing that dealers compete based on service, not price. Further, high service dealers are always available to provide expert advice, actually SELL the brand's unique features and functionality, and generally evangelize Festool. This is readily apparent from dealer participation on FOG and through email/phone conversations with Festool dealers. Amazon provides none of these services.
So, why distribute through Amazon? And, if Amazon is OK, why not Home Depot or Walmart. All three of these retailers provide the same level of value-added service (i.e., none).
There are plenty of high service internet dealers already. It doesn't make sense to increase their competition by giving the product to a no service dealer like Amazon. As I've said in the past, if I'm not getting high service, then I certainly don't want to pay for it. Amazon is benefiting from the good reputation high service dealers have built for Festool...but at the expense of lost business to these same dealers. Where I come from, what Festool is doing is called "Biting off the hand that feeds you."