One day to go - Price fixing in Aus

[eddomak]

Amazon.co.uk sells and delivers to Australia.

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'.

From personal experience on a few tools, it works and the goods arrived no problems.

 

[Stephen B]

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

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Peter I hope you are correct.

However looking at some background to this situation. One dealer in South East Australia, with high sales levels, a Festool Premium Dealership, great range of stock, both Internet and shop front sales at a central location, with very knowledgeable staff, offering demo days, loyalty points etc,. and referred to as JT in this thread was the main Australian Dealer discounting.

That leaves me with two conclusions - some inept dealers could not compete on service and price and complained to Festool Aust; and/or DB may be correct that Festool Australia is seeking to monopolise internet sales at the cost of their Dealer Network.

Compared to NA we are a small market, with far fewer dealers, and so market forces and issues are amplified and very quickly. It is also a market, that until this exemption was granted, where price fixing is illegal. There is Recomended Retail Price, but distributors and dealers can re set their own prices given their operating and profit margins.

Australian consumers are used to 'shopping around' for the best prices. They also generally respect good service and will pay extra if it is genuinely provided. Just do not rip us off, we will walk.
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[member=1674]Peter Halle[/member] [member=42735]DB10[/member]

Edit: I am not implying that all dealers who may have complained are inept.

 

[Michael1960]

I was recently considering buying a second CT26 extractor.  It's been a while since I bought my last one (a Midi).  I expected a new CT26 to be around $900AU.  Wrong... it's $1155! 
Its a pity I don't live in the US - I could buy one for a sweet fixed price of $650US.  Too bad so sad.  I'll move on...  My Wertheim shop vac isn't looking that bad after all. 

 

[Stephen B]

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If we use today's conversion rate [and ignore import cost differences, market size etc,.] a CT 26 vac would be $US899.00 in NA.

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Michael I just checked. With HEPA filter (making it directly equivalent with the NA model apart from Voltage), a CT26  is actually $A1288.00.
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http://www.festool.com.au/epages/tooltechnic.sf/en_AU/?ObjectPath=/Shops/tooltechnic/Products/290494/SubProducts/290494

[member=14084]Michael1960[/member]

 

[Michael1960]

Bottom line - this, the first ever ACCC approved price fixing arrangement is going to result in fewer Festool sales in Australia. If I can't negotiate a price with my preferred dealer its not going to happen.  Our prices are way too high! It's only been a great Premium dealer sweeting up the price I have been prepared to buy Festool.  I don't need my dealer spending time a lot of time selling a product.  I'm not interested in test centres etc.  I either know about  a product or do research before hand.  I still am a Festool supporter, I just won't be buying many (if any) thanks to price fixing. I can live with this.

 

[routermaniac]

Interesting... Price fixing should not be legal in a capitalist society.  Festool is not the only one to pull this trick,  theres a couple of automotive companies and machinery companies doing the same.  I don't buy it that this will benefit the dealers,  this will only benefit festool online sales.

 

[Bohdan]

From information supplied to me by a dealer apparently Festool Aust online sales have always resulted in a profit kickback to the dealer that you nominate in the purchasing process. That dealer also assumed responsibility for all support on that purchase, whatever that means  ???.

They are also no longer allowed to assign "loyalty" points for Festool sales [crying] and most now offer free delivery  [big grin].

 

[Mike B]

I like the idea of a kickback to the chosen reseller. Though surely it was the only way Festool would have gotten this past them in the first place.
Having said that, even Apple allow their resellers to run 10% off sales. All I can say is they Festool Australia's future promotions better be a hell of a lot more generous than they have been in the past.

 

[routermaniac]

Looking at the recent promotion I wouldn't hold my breath.  I think what Festool has done is inapropriate and suggests they're taking customers for granted. Personally Im going to start looking elsewhere unless the Festool tool has specific features I want.

 

[DB10]

I hear you. the latest promotions are just a few items like the over priced guide rail accessory kit been offered for the same price as it was before the April price increases. Not really my idea of a promotion.

 

[demographic]

So if a tool's warranty is invalid because its been sold to someone in another country, what happens if I buy something over here in England, go abroad to work with it and it breaks?
Or just suppose I actually move abroad and take it with me?  I wasn't aware that moving home was illegal so how on earth do they say that tools I bought aren't guaranteed if I move?
Or that there's a list of countries that Festool normally sells to but that if I break one of my legally bought tools over there I can't just pop into the nearest dealer and get it sorted?