One day to go - Price fixing in Aus

[DB10]

Just a quick reminder to anyone in Aus.
I spoke with one of the main Festool dealers in Aus today and he said to get any new order in before 1st April, as the Festool price fixing will start for sure on April 1st, no joke I'm afraid and most of their prices will have to go up to be in line with Festool Aus.
as Untitdy mentioned earlier last week you can save nearly $200 on a Kapex purchased before April 1st.

 

[Linbro]

It's not like our pricing was much good anyway, compared to overseas, but at least there were sales, sometimes 20% off.
There are some tools that I'll never replace with another brand - 1400 router, Kapex & 850 planer being three of them - but, others I already have replaced.
I've been buying Festo/Festool since about 1997, but I can't see another purchase in the near future.

 

[DB10]

Yeah I think your right. Some Festools are exceptional and some are just so,so.
But sometimes it could be surprizingly strange when comparing prices for a paticular Festool on the Internet what variations there was out there on price, not always but sometimes, and you could get lucky being in the right place at the right time.
  I think alot of people will be turned off by this stunt.
  I have started to take a closer look again at Metabo as iv'e seen some good deals on their tools lately. It would be good to hear from someone on their thoughts on the Metabo 18v mitre saw.

 

[Michael1960]

With regards to prices on the Internet is anyone in Oz using overseas suppliers?  If so, any recommendations?
I'd like to check this out especially for consumables.  My main dealer used to provide good pricing on items such as sandpaper.  The arrangement was good for both of us.  I would buy a quantity of bulk packs (usually 50's & 100's) for a fair discounted price and he sold a good stash of sandpaper.  It will be interesting to see what happens in the future...

 

[Linbro]

Suppliers aren't allowed to sell Festool outside of their own country.

 

[DB10]

Suppliers aren't allowed to sell Festool outside of their own country.

That's right and even if you could there would be no warranty on your new purchase, I know with sand paper that warranty is't a problem but it would probably cost more on postage than you'd save on the cost of buying consumables here.

 

[Stephen B]

[size=14pt]Guys,

Apart from Linbro's point, consider this example for PKTs 10.

At work today, Makita 150mm, Paint (White), 120 grit - $A12.99, (I know you can get it cheaper in Metro areas), Festool Brilliant 120 Grit from Festool Aus.  - $A14.70 and ToolFest in UK - £8.37 which is approx. $A16.07.
[size=10pt]
[member=42735]DB10[/member]  [member=14551]Linbro[/member] [member=14084]Michael1960[/member]

 

[DB10]

Yeah there was a time maybe a couple of years ago when the Ausie dollar was very strong that it might have been worth importing certain things, but when I check on the UK prices of say Festool, they are usually about the same price as we pay here now that the dollar has dropped.

I just bought some Brilliant 120's for the new 150 ETC and was pleasantly surprised with the price. Wasn't so happy with the price of the Granat paper though.
Boy does that price soon escalate when you order a few different grits. Do like the Granat paper though, I find it a good all rounder.

 

[Michael1960]

Below is the price for 100 x Brilliant 2 sand paper (as per local Importers website)

$88.90 AUD. Price includes GST.
STF D150/16 P120 BR2/100 , Product Number 496589

Before Price fixing I was paying at least $20 less per pack (Bulk buying)
I've used the Makita sandpaper on my RO150.  It's a good product.
Not sure what I'll do when I need to replenish stocks.

 

[eddomak]

Amazon.co.uk sells and delivers to Australia. When the Australian dollar was good, there were a couple of bargains to be had (Domino 500 in particular). Now with the $AUD comparatively bad the savings are probably not worth it compared to not having a warranty etc.

For sandpaper, as I am only a home user, I found that sandpaperman.com.au had very reasonable prices even compared to other brands, and the custom quantities made it possible to get a 5 sheets of each for a broad spread of grits (and some more of the commonly used grits).

 

[Linbro]

Amazon.co.uk sells and delivers to Australia. When the Australian dollar was good, there were a couple of bargains to be had (Domino 500 in particular). Now with the $AUD comparatively bad the savings are probably not worth it compared to not having a warranty etc.

For sandpaper, as I am only a home user, I found that sandpaperman.com.au had very reasonable prices even compared to other brands, and the custom quantities made it possible to get a 5 sheets of each for a broad spread of grits (and some more of the commonly used grits).

Yeah, but they still shouldn't sell those Festool items to an overseas address, and once you get to the checkout I'm sure you would be told 'this item cannot be shipped to your address'. If a dealer sells to an overseas buyer, there are consequences, just like if a supplier gives you a discount.

 

[routermaniac]

Being a devils advocate here how on earth does Festool know what you paid for anything.  Ie advertised price is x.  You go into the shop and buy a stash of gear for a negotiated price.  How can they police this??? What it will probably  mean is less internet sales and more over the counter sales.  Shop owners in the main look will look after their regular customers.

 

[peter halle]

It might mean less internet sales.  If what I have read is accurate part of what this is to combat is the practice of going into a dealer's location, spending the employee's time and getting their knowledge and then going home and ordering the tool on the internet for $25 less.  If the price is the same then that person walking in the door will be more likely to buy and reward the shop owner whose employee cost has been used.

Can Festool police what a product is actually sold at?  Possibly not.  But if a dealer is found to be discounting then that would be a violation / breach of the dealer agreement and I am sure there are remedies for that up to and including dropping the dealer.

This whole change will take a while to hash itself out but if it begins to work I imagine that you will see more dealer demos, maybe some training, classes, etc.  Dealers will be less hesitant to spend the money if the odds of the resulting sales going to the internet will be reduced.

Peter

 

[Linbro]

Being a devils advocate here how on earth does Festool know what you paid for anything.  Ie advertised price is x.  You go into the shop and buy a stash of gear for a negotiated price.  How can they police this??? What it will probably  mean is less internet sales and more over the counter sales.  Shop owners in the main look will look after their regular customers.

I'm sure there's sales paperwork submitted to Festool Australia. My friend told me - If we get caught discounting, we lose our dealership.
Peter, that's exactly the reason he gave me re. wasting time and trying to get them to price match an online price, after spending an hour with the customer demo'ing tools.

 

[AlexThePalex]

Festool dealers have to show Festool copies of the receipts, that's how they police this. Before Festool's price fixing was made illegal in Europe, I knew of dealers who would give you a discount but a receipt for full price. And I also know dealers who ran away screaming from Festool because of their restrictive policies.

 

[peter halle]

Call me crazy but I am an advocate for a fixed price from all dealers because it will ultimately weed out those dealers who have been profiting on the efforts of others and will force them to provide the services that help the buyers to prevent them from buying elsewhere at a lesser cost.

Take North America as an example, of course Amazon gobbles up their share, but other dealers who put themselves out there and provide service and knowledge can, and do, rise above the others which relates to their bottom line.  The lackadaisical dealers will pick up the occasional sale but they can't grow based on lower prices - they have to earn the extra business that would go otherwise to those who are going beyond.

Peter

 

[Bohdan]

If dealers wont to there are ways around "no discounts".

One of my suppliers gives you loyalty points that you can redeem against other purchases, another throws in consumables though these benefits usually only amount to about 10%. Now I will have to direct my purchases based on "side benefits" rather than straight discount.

 

[Mr_Mod]

I was told by JT that they cannot provide any discount now on Festool items including accessories, i was in there the day the festool guy was repricing the dispalays. I said to him that even with the way the exchange rate is it will still be cheaper to buy the accessories from Amazon (US) or (DE) than what they are here.
I cant even use the points i have accumulated against the purchase of Festool items, that was in their new agreement with JT.

For your info there is a guy in Glenhuntley that sells after market version of the extractor bags, although i have not bought any from him yet.

 

[Linbro]

Peter, I can definitely see the benefits of fixed pricing - but have you seen the prices we pay for Festool, down here?

 

[DB10]

This is what I wrote on the subject on another thread. You need to bear in mind, that not all Festool dealers here in Aus, are the same and not all the dealers here are as proactive as we hear about in the USA.

My local Festool Dealer is day dreaming when he said to me that price fixing will be good for their business,  as all dealers will now have to play on a level playing field.

The way it is for me is that my local dealer has now become quite obsolete.

There is no point in me driving 45 mins to an hour burning up fuel to put an order in with them and with a sales person who knows very little about festool, as the so called expert on hand is never there.
Only to find that when I am in the store, that most of what I need they won't hold in stock and will have to be ordered in, resulting in a return trip usually a week later when the stock arrives.
When on the other hand I can order on line at my convenience with Festool Australia on line at the same prices, my orders usually come post free and arrive in one go, somtimes next day or a few days later.
There is only one business who will thrive with this arrangement and that will be Festool Aus - On line sales. My local tool store's  Festool department has whenever I've been in there been like a Mueseum, very quite.
It can only be a matter of time before they find new products to take up the retail space. That will be a shame but there's really no incentive to take the drive down there unless you want to check out say a Kapex in the flesh.