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.
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.
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!!!![]()
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.
Amazon does not have functionality in their back end software for merchants selling on Amazon to calculate tax.
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.
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.