In defense of Real dealers....

You may be right. Selling on Amazon may help the dealers. There are loads of people that use Amazon for the research and then buy local or from another internet seller.
 
I already sold through Amazon to take advantage of their enhanced marketing and broader reach. I, and a few other dealers, built the Festool business on that website over the last few months.

I pay Amazon a VERY SIGNIFICANT portion of the profits. Now I don't have to because they just usurped the vast majority of that business that they didn't build.

The Walmart thing is unspeakable.

Tom

BTW: Amazon CHEATS. They cheat on the agreements that they make with their suppliers, so what makes you think they won't cheat you?
 
What do you mean cheat. I have made over 1500 purchases on Amazon and only ever returned 2 things, both my fault. Amazon has the best return policy ever too.

Seems like you are upset at Amazon when in fact it is Festool you need to direct your anger at. Festool has to sign up and provide Amazon the the tools. Seems like if anything Festool changed the rules on you.

You may be mad at Amazon for something due to your account, but as far as them directly selling Festools, Festool initiated it and approved it.

A far as Walmart what the heck are you talking about! That is the SAME exact thing Amazon is doing when a seller sells something on Amazon. Walmart is NOT selling the tool, Tool king is. Just like you used Amazon, Tool King decided to use the Walmart service, which is a copy of the Amazon business.
 
I the example below, Amazon states that they are cheating on their agreement with Amazon's supplier and therefore can't display the actual sales price or they will violate the agreement they made with their supplier. They state that if you add the item to your cart, they will then tell you what the actual sales price is.

[attachimg=#1]

Below is the cart, which has the item above added to it and the actual sales price displayed. This clearly shows that the consumer or end user benefits in this arrangement and that Amazon has violated the agreement they made with their supplier to sell the product for $70, assuming such an agreement was made. If such an agreement wasn't made, then why would such shenanigans be required?

[attachimg=#2]
 
I've purchased many things on Amazon over the past few years and have had decent results, even when I needed to return something.  That being said, I cannot say just how much I truly value placing an order with an actual human and getting actual human contact/feedback regarding the order.  The older I get (and I'm not that old) the more I appreciate great customer service provided by actual people as opposed to getting decent service from a nameless faceless website.

For example, I just ordered some Stabila levels from Tom Bellemare and they cost a pretty penny (not that they were expensive, I just purchased quite a few).  I got a call from Tom asking whether or not I wanted to sign for them instead of Fedex just dropping them off at my front door.  That's service I'll take any day over Amazon's prime shipping.  Any one of these "real" dealers on the FOG take your business personally, and will go the extra mile to make the experience a pleasureable one.

Personal contact, personal relationships are what it's all about in my book.  That's what perpetuates my woodworking business.

My [2cents].

Jon
Jon
 
Now, I think that all bargain seekers should watch Amazon carefully. They have a pattern of cheating on their supplier agreements, which normally benefits the consumer...

Tom
 
Yeah, but no buyer knows that and you can not fault them for that.

In these hard times its tough and a buyer is going to shop price even if the supplier screws over the sellers.

I guess I am asking how exactly are they cheating on the supplier agreements?

I totally feel I have been screwed over by the credit card processors and Google, paypal, etc in dealing with them selling things online. They do favor the buyer and do not seem to follow their own rules as well. I am now working with Amazon so I need to know what to look for.  I do not sell many items through Amazon, but still.
 
I takes me 45 minutes to reach a Festool Dealer showroom (I'm in the New York City Metroplitan area), so Amazon is a blessing for me. The Prime shipping arrangement is great for people who order at least 20 times per year. I'm glad to see Festoll products available on Amazon.com.
 
Guys, I think several of you are missing the point.  I love Amazon too.  But my point is about Festool's distribution strategy.  To keep high service dealers loyal, happy and fed you must protect their distribution.  Amazon is a disruptive company.  Their entire business model rests on their ability to disrupt brick and mortar businesses.  Once they get going, they won't hesitate to discount product.  I will guarantee that.

Also, Festool products where ALREADY available on Amazon.  A lot of comments mentioned that people were happy Amazon decided to carry them but they were already there.  I know of three real Festool dealers who have products there and it costs them at least 12% for the privilege.  Amazon benefited greatly by observing their sales any knowing which products to carry and feature.

It was mentioned that Amazon doesn't have any advantages that the Festool dealer can't match.  Again, not true.  Take a look at the attached image.  I can order a Kapex with next day delivery for only $4 shipping.  How many real Festool dealers can match that?  Amazon likely has the lowest shipping cost of any company in the world.  

Another argument...times are tough and a business has gotta do what it needs to survive.  Fine.  Then allow real Festool dealers to discount their products if they want too.  I'm getting ready to order $4000 in Festools.  Any dealer what to PM me and offer a 15% discount?  If a customer is willing to buy in volume, then Festool should allow the dealer some flexibility.  After all, this benefits all parties and would give real dealers an advantage that Amazon can't match.  Namely, the ability to negotiate pricing on a custom basis by order.  

My main point still is:  You can't have your cake and eat it too.  Ether you stick religiously to controlled distribution and controlled pricing, or you open the flood gates.  You can't tie the hands of real dealers in how they price and market their products while simultaneously offering the products to gigantic retailers who have a history of breaking the rules to get an advantage.  If the playing field isn't level, you quickly grow tired of playing.  

 
marrt said:
Guys, I think several of you are missing the point.  I love Amazon too.  But my point is about Festool's distribution strategy.  To keep high service dealers loyal, happy and fed you must protect their distribution.  Amazon is a disruptive company.  Their entire business model rests on their ability to disrupt brick and mortar businesses.  Once they get going, they won't hesitate to discount product.  I will guarantee that.

Also, Festool products where ALREADY available on Amazon.  A lot of comments mentioned that people were happy Amazon decided to carry them but they were already there.  I know of three real Festool dealers who have products there and it costs them at least 12% for the privilege.  Amazon benefited greatly by observing their sales any knowing which products to carry and feature.

It was mentioned that Amazon doesn't have any advantages that the Festool dealer can't match.  Again, not true.  Take a look at the attached image.  I can order a Kapex with next day delivery for only $4 shipping.  How many real Festool dealers can match that?  Amazon likely has the lowest shipping cost of any company in the world.  

Another argument...times are tough and a business has gotta do what it needs to survive.  Fine.  Then allow real Festool dealers to discount their products if they want too.  I'm getting ready to order $4000 in Festools.  Any dealer what to PM me and offer a 15% discount?  If a customer is willing to buy in volume, then Festool should allow the dealer some flexibility.  After all, this benefits all parties and would give real dealers an advantage that Amazon can't match.  Namely, the ability to negotiate pricing on a custom basis by order.  

My main point still is:  You can't have your cake and eat it too.  Ether you stick religiously to controlled distribution and controlled pricing, or you open the flood gates.  You can't tie the hands of real dealers in how they price and market their products while simultaneously offering the products to gigantic retailers who have a history of breaking the rules to get an advantage.  If the playing field isn't level, you quickly grow tired of playing.  

Im sure there would be a number of dealer willing to "help you out" to secure your order.
as regards amazon I do not bother looking for anything other than the odd book as I find I can buy better elsewhere I am talking about amazon uk.
I do not know if the US site has more competative pricing.
here in the uk I could order a kapex with free shiping from most uk festool dealers.
 
Amazon in the US sometimes has the best pricing sometimes not, but 90% of the time when you factor in free shipping and no tax it is cheaper for the same product. Plus, no gas money and no time for me driving around which is also huge dollars. Get it fast, don't talk to anyone(which is an advantage for me). No place has as big a selection as Amazon either.

I use Amazon religiously and like it.

Festool products were not available on Amazon and sold by AMAZON, which makes a huge differnece. Amazon takes anything back no questions asked and they have the fastest best shipping I have ever dealt with. The Festools you refer to were sold by sellers using the Amazon service. They take returns, but nothing as liberal as Amazon and the shipping is nowhere near as fast.

If you are in the same state as an Amazon sellers state they  do charge tax, Amazon does not. Say what you will, but 10,000.00 worth of Festools has a crap load of tax. I have never sold an item in my own state probably because of the tax issue. I am not sure, maybe out of the 1000 items I have sold people in my state do not want it, but I think it may be the tax thing. I have learned to deal with it.

Amazon is here to stay so learn to work with it or you will probably perish. It sounds as the Festool company figured the same.
 
I guess once again I'm in the minority here. I rarely use Amazon. My wife uses it all the time for anything possible. As far as Festools I support my local dealer as much as possible.. I'm fortunate in that regard since the only local dealer is not too far and they are fun to hang with for a bit and shout the sh-t. If I need a Festool and they have it in stock, I run over and get it. If I don't need it right away I have them order it. If they don't have it but I need it immediately I call Bob or Mcfeeleys.
I can easily understand how guys would use Amazon or other such sites. If living in more rural areas its probably the way to go. Being in the big City I guess it isn't that necessary for me. We have stuff in stock and I prefer to support locals.
 
nickao said:
If you are in the same state as an Amazon sellers state they  do charge tax, Amazon does not. Say what you will, but 10,000.00 worth of Festools has a crap load of tax. I have never sold an item in my own state probably because of the tax issue. I am not sure, maybe out of the 1000 items I have sold people in my state do not want it, but I think it may be the tax thing. I have learned to deal with it.

Nick, just to clear something up, as a seller on Amazon of Festool products, I do not charge sales tax to my NY state customers (where my brick and mortar store is).  Amazon does not have functionality in their back end software for merchants selling on Amazon to calculate tax.  Amazon themselves will charge you tax if you are in a state where Amazon does business (if you purchase from Amazon themselves and live in NY you pay tax).  Us merchants have to "eat" or pay the tax ourselves.  Any NY customers I sell to, I pay the tax for on my end.

Also, just to mention shipping.  Heck yes, Amazon probably has the best shipping rates and consistency coupled with reliability in the world.  To compete with this I offer free shipping on any and every Festool purchase, thru Amazon or not and any orders placed prior to 3pm EST or so ship out same day!  I'm trying guys!!! :)
 
Sean Ackerman said:
nickao said:
If you are in the same state as an Amazon sellers state they  do charge tax, Amazon does not. Say what you will, but 10,000.00 worth of Festools has a crap load of tax. I have never sold an item in my own state probably because of the tax issue. I am not sure, maybe out of the 1000 items I have sold people in my state do not want it, but I think it may be the tax thing. I have learned to deal with it.

Nick, just to clear something up, as a seller on Amazon of Festool products, I do not charge sales tax to my NY state customers (where my brick and mortar store is).  Amazon does not have functionality in their back end software for merchants selling on Amazon to calculate tax.  Amazon themselves will charge you tax if you are in a state where Amazon does business (if you purchase from Amazon themselves and live in NY you pay tax).  Us merchants have to "eat" or pay the tax ourselves.  Any NY customers I sell to, I pay the tax for on my end.

Also, just to mention shipping.  Heck yes, Amazon probably has the best shipping rates and consistency coupled with reliability in the world.  To compete with this I offer free shipping on any and every Festool purchase, thru Amazon or not and any orders placed prior to 3pm EST or so ship out same day!  I'm trying guys!!! :)

Don't worry Sean,  we're out there supporting your efforts.  There are those of us who value what you do (even though I haven't purchased a systainer from you yet, but soon will be). 
 
nickao said:
Amazon in the US sometimes has the best pricing sometimes not, but 90% of the time when you factor in free shipping and no tax it is cheaper for the same product. Plus, no gas money and no time for me driving around which is also huge dollars. Get it fast, don't talk to anyone(which is an advantage for me). No place has as big a selection as Amazon either.

Amazon takes anything back no questions asked and they have the fastest best shipping I have ever dealt with.
Amazon is here to stay so learn to work with it or you will probably perish. It sounds as the Festool company figured the same.

Amen to the above.

I honestly don't see how it is Amazon's fault that it delivers a guaranteed brand-new product at a competitive price with ultra-fast, ultra-cheap delivery and a generous return policy. IF (big if) there is some sort of issue here, it is between Festool and its dealers. The criticism directed at Amazon.com is completely unwarranted and unfair.
 
Amazon does not have functionality in their back end software for merchants selling on Amazon to calculate tax.

What?

I use Amazon as a seller it it definitely does automatically charge IL state tax for anyone that buys from me in the state of IL.

All you need do is edit your Sales Tax information under settings.
 
nickao said:
You may be right. Selling on Amazon may help the dealers. There are loads of people that use Amazon for the research and then buy local or from another internet seller.

I think the exact opposite. I can go to a local dealer, look at it, feel it then go to Amazon and in most cases get a lower price, pay no shipping,  and avoid sales tax.  I have done it and pretty much all the woodworkers I know have done it.
 
nickao said:
Amazon does not have functionality in their back end software for merchants selling on Amazon to calculate tax.

What?

I use Amazon as a seller it it definitely does automatically charge IL state tax for anyone that buys from me in the state of IL.

All you need do is edit your Sales Tax information under settings.

Nick, shoot me in an email, sean@toolnut.com, you've intrigued me.  As an Amazon merchant for "Hardware / Tools" I believe you and I have different seller accounts which cover different features.
 
I would like to chime in on this one, as of course, this is of more than passing interest to me. And though I speak only for myself, not with any "Festool" insight, I have mixed feelings finding  myself in agreement with most of the posts here, even the ones that are seemingly contradictory.

Posted on: June 25, 2010, 06:20 PMPosted by: nickao 
Insert Quote
If the hand that feeds you is still keeping you hungry you need to expand your search for food. 

It seems simplistic to say it is obvious, but Festool may be feeling the pinch as everyone else, especially at their price point. If not great, they are just expanding their business anyway they can. A big business is not going to get nostalgic over the people that initially made the company what it is, they will go on and do anything they can to make more money. The point of any business is to make money, not to give great customer service or be faithful to their buyers, even making great tools is not the point of a company. Those are just a means to make the money.

I think if a company could make say twice the amount of profit just using Amazon than using small dealers and Amazon together, the company would get rid of the small dealers. Thinking anything else may be a bit naive. Business is cut throat, especially if  it's survival is on the line.
 

I basically agree. Companies sole being is to make profit. Amazon directly selling Festool tools is, IMHO, a major step for Festool.
It has such huge reach and resources, Festool can't ignore this channel. Nope, they are not going to sit down and wax nostalgic about the "early days" here  (2000-2004) when there weren't 50 dealers (Independent Sales Agents - ISA's) in the whole country.
Would I be surprised to see Festool in Home Depot or Lowe's? Not in the next year or two or three, but if proper "assurances" could be made by HD and Lowes', no, I would not be surprised. I would be surprised if we didn't see them there.

   

Posted on: June 26, 2010, 08:27 AMPosted by: marrt 
Insert Quote
Guys, I think several of you are missing the point.  I love Amazon too.  But my point is about Festool's distribution strategy.  To keep high service dealers loyal, happy and fed you must protect their distribution.  Amazon is a disruptive company.  Their entire business model rests on their ability to disrupt brick and mortar businesses.  Once they get going, they won't hesitate to discount product.  I will guarantee that.

Amazon may or may not be disruptive to brick and mortars...as well as smaller (who isn't smaller, BTW) on-line dealers. I am not a betting man, but if I were, I'd say yep, they will take away a significant chunk out of many on-line dealer's sales.

Also, Festool products where ALREADY available on Amazon.  A lot of comments mentioned that people were happy Amazon decided to carry them but they were already there.  I know of three real Festool dealers who have products there and it costs them at least 12% for the privilege.  Amazon benefited greatly by observing their sales any knowing which products to carry and feature.

True.

It was mentioned that Amazon doesn't have any advantages that the Festool dealer can't match.  Again, not true.  Take a look at the attached image.  I can order a Kapex with next day delivery for only $4 shipping.  How many real Festool dealers can match that?  Amazon likely has the lowest shipping cost of any company in the world. 
 
Yes, great point. My warehouse has pretty "reasonable" shipping rates with UPS, but I don't think I, nor many dealers, could afford to ship a Kapex (65 lb.and OVERSIZE box) overnight across the country, charge $4.00 shipping and not lose $$ (or make it so close to losing $$, that you'd wouldn't do it). Amazon, because of its' size and the soooooooooo many other items it sells, can afford these types and scales of "loss leaders". There are a number of dealers (myself included) who have totally free shipping on all Festool sales - no minimum size order. In a real way, on a small order, that is a "loss leader" that we offer as a way of being "competitive" and/or thanking a customer for doing business with us. But, the Kapex overnight example is something I could never match.

Another argument...times are tough and a business has gotta do what it needs to survive.  Fine.  Then allow real Festool dealers to discount their products if they want too.  I'm getting ready to order $4000 in Festools.  Any dealer what to PM me and offer a 15% discount?  If a customer is willing to buy in volume, then Festool should allow the dealer some flexibility.  After all, this benefits all parties and would give real dealers an advantage that Amazon can't match.  Namely, the ability to negotiate pricing on a custom basis by order. 

Disagree with you here.  This would be the end of Festool's established dealer agreements and would totally destroy the idea  (already IMHO, being flirted with Amazon) that Festool wants dealers "to compete on service, not price".

My main point still is:  You can't have your cake and eat it too.  Ether you stick religiously to controlled distribution and controlled pricing, or you open the flood gates.  You can't tie the hands of real dealers in how they price and market their products while simultaneously offering the products to gigantic retailers who have a history of breaking the rules to get an advantage.  If the playing field isn't level, you quickly grow tired of playing. 

Who knows for sure? Festool may be able to pull off this balancing act.
 


Posted on: June 25, 2010, 07:39 PMPosted by: Tom Bellemare 
Insert Quote
I the example below, Amazon states that they are cheating on their agreement with Amazon's supplier and therefore can't display the actual sales price or they will violate the agreement they made with their supplier. They state that if you add the item to your cart, they will then tell you what the actual sales price is.

[attachimg=#1]

Below is the cart, which has the item above added to it and the actual sales price displayed. This clearly shows that the consumer or end user benefits in this arrangement and that Amazon has violated the agreement they made with their supplier to sell the product for $70, assuming such an agreement was made. If such an agreement wasn't made, then why would such shenanigans be required?

[attachimg=#2]
 

Tom,

If this discounting is going on, whereby a totally honest (and nice guy too ;))  dealer like yourself (and hell, the rest of we dealers) is being undercut by Amazon, on total violation of agreements, Festool needs to check it out ASAP.

Ok, at the end of the day, will Amazon becoming a dealer affect my sales in a negative way, or as Peter H mentioned, - result in increased sales because of Amazon raising brand awareness and increasing market share (sort of  John Kennedy's "a rising tide lifts all boats" thing)? I am not sure and would be lying (and a terrible naive businessman) if I  said that I am not concerned. But I honestly think I bit more philosophic about it now than I would have been  about it a few years back and am reminded about a quote from the movie "The Godfather" - "It's business, not personal". I accept that.
But, on the other hand, it's been a wild and wonderful 8+ years with Festool, and I consider my self so incredibly fortunate, privledged and maybe even blessed, to have jumped on and been a part of, this train called Festool. There are some incredible tools coming out in the latter part of this year and next..and next, so that I ain't jumping off anytime soon. To Festool and all my customers -"THANKS"!

Bob
 
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