Perhaps instead of Festool lowering their standards to compete with Bosch et al...
Again, Festool should NOT lower their standards or quality. This would be a HUGE mistake.
IIRC, Price Fixing involves collusion between different companies to fix the price of an item that they all sell.
If you sell me something, it's mine. I own it. I can resell it for any price I want. In fact, I can use price alone as my distinctive value add in order to compete. This is a fundamental principle of capitalism and, in part, sets up an economic Darwinism that has resulted in the highest standard of living in the world. Any direct interference with this model is price fixing. Most manufacturers use a co-op (cooperative advertising) program to persuade the dealer. The manufacturer will rebate to the dealer a certain percentage of sales (usually 4%-6% on expensive goods) if the dealer ADVERTISES the manufacturers recommended price. The dealer was still free to negotiate any price face to face with the customer. What Festool is doing is clearly price fixing in it's purest form. The argument that it requires two or more companies to price fix is a Red Herring. If you have dealers and don't allow them to compete using price, then it's price fixing...by definition.
Once you get a big box store involved then pressures can be applied that are counter productive to their model.
This is 100% true and why many companies fail in the transition. I have sold products to mass retailers and am speaking from experience. However, if you have a unique product, like Festool, then you can resist the pressure. When you have a "me too" product, like 99% of products out there these days, then you do what the retailer says and you like it.
...just as Apple is an innovator in PCs and personal entertainment, while others like Dell are more interested in supplying a commodity product to the masses at a low price, but they are not considered innovators in product design and functionality, but perhaps in mass manufacturing and mass marketing.
Also true. However, an Apple PC is only 20%-30% more expensive than the equivalent Dell. Not the 200%-300% that Festool demands. Except for luxury goods, usually the innovative "best" product will be priced at a modest premium over the competition...unless you have to rely on specialty distribution. Then you get into the same problem as Festool. At the manufacturer level, you have to get a 50% margin to make up for the low volume. And you have to offer the dealer a 40%-50% margin to handle a product with low volume. You then find yourself priced 2x+ over the competition. Not because your product actually costs that much more for parts and labor to manufacture....but because of the distribution model you have selected and the need to recover R&D expenses from a low volume line.
It seems that every 2 months or so, I decide to bite the bullet and start down the green slippery slope. I'm sensitive to wood dust (why I'm always interested in Festool) so yesterday I started my ritual by pricing out a CT33 with Boom...total of $800. Are you kidding me? $560 for vacuum cleaner and another $240 just to keep the hose out of the way. Then, $10+ for any and every little plastic part that we all know costs $0.05 to make in quantity. I mean, come on guys. I also agree that Cheap Ain't Cheap and that You Are Never Sorry For Buying The Best and all that. However, I don't like getting hosed ether (no pun).
So, after reviewing this discussion, the solution may not be to introduce the line to Home Depot. Maybe that would drive away the disciples by tarnishing the brand too much or risk a siren's call of quick profits that Festool just couldn't resist. The main reason to consider HD in the first place was simply to reduce the cut of the middle man to make the products more affordable to the common man.
So, I have a new proposition...eliminate the dealers altogether and go direct. Many of you order from online dealers anyway. By eliminating the dealer network, then Festool gets to keep part of the 40% margin they are giving to the dealer...and they can pass along a little to the end user to make the products more affordable. Again, everyone wins (except the dealer of course). For tools this expensive, the 40% "value add" the dealer is providing puts the tools out of reach for too many people who deserve a chance to worship at the alter of Festo.