Price Change for Canadians

[Pete Pedisich]

I think Festool make what they feel is the most practical decision on a country by country basis.
They wish to succeed in the US market, and realize we are very price tag sensitive, and sell at a lower profit margin to gain a foothold in the market.
Other countries, used to higher prices on tools, have a higher 'price tag' tolerance.
My dad paid (in adjusted dollars) much higher prices for contractor grade power tools than I do now, maybe not quite Festool prices, though.
I feel bad for the Canadians, it certainly does not seem fair, but the Australians and many others have much higher prices than the US on Festool.

 

[peter halle]

I'm sorry to learn that the price of systainers remians higher than that charged by Lee Valley.  For example

Systainer 1:                Festool:  $73.36       Lee Valley:     $62.00

Systainer 5:                Festool:  $101.13     Lee Valley:     $84.50

9 Drawer Sortainer:    Festool:  $159.87     Lee Valley:   $138.00  

If I were a Canadain Festool dealer attempting to establish a little known product line in Canada and competing with a well known and respected company like Lee Valley, I would be quite upset with Festool.

Frank,

I understand your feelings about the longstanding pricing and what is felt to be a lack of equivalence even when the money exchange rates are taken into account.  But I offer this as a thought.  If I understand correctly, the prices above are for a Festool Systainer and then a Tanos Systainer being sold by Lee Valley.

Tanos and Festool are owned by the same company.  Festool buys systainers from Tanos and has them modified with the colored latches, etc.  They then either sell them as their systainers or makes them part of the tool sale.  They will mark up the product when they sell them directly to the public thru their dealers just like anyone in retail will do if they want to stay in business.  We know that the Europen companies are big on one price to all.  I'd venture a guess that Tanos sells their systainers to the European tool companies who package them with their tools for the same price as they do to Festool.  If Tanos sells directly to the customer thru their dealers then there is one less layer of markup.

The European method is different than ours because they expect each part to be accountable and profitable.  If not, well guess what.  So each subsidiary sells and the next subsidiary adds on their profit.

I guess I'm saying that this might not be the best example of inequity in pricing because there is another layer of profit involved.  Now, granted, Festool may see their sales of systainers drop and the sales of Tano stuff increase.  If you are business and have two companies, how much does it hurt you to lose sales to yourself?

Just my thoughts.

Respectfully,

Peter

 

[Frank Pellow]

Peter, I agree with a lot of what you say , but the bottom line is that:

• In the USA, Festool has chosen to match Tanos Prices (charged by MySystainer.com among others)
  
  • In Canada, Festool has chosen not to match Tanos Prices (charged by Lee Valley)

 

[AlexThePalex]

Well, be happy you at least get the Tanos systainers cheaper than Festool's. In Holland the importer adds another 15% on Tanos' prices, making them more expensive than Festool's.

 

[peter halle]

Peter, I agree with a lot of what you say , but the bottom line is that:

• In the USA, Festool has chosen to match Tanos Prices (charged by MySystainer.com among others)
  
  • In Canada, Festool has chosen not to match Tanos Prices (charged by Lee Valley)

• 
  
  Frank,
  
  I guess all I can say is that I wonder if that will be a temporary situation.  Spring is on the horizon and the annual price adjustments typically happen then.  Maybe there will be good news in Canada for the Festoolers.  I hope it comes out that way.
  
  Peter
  
  Peter

 

[mouppe]

I received a cheque in the mail today from Lee Valley. They recently lowered their prices for a bunch of tools and in line with their price reduction guidelines sent me a refund for a tool I purchased almost two months ago! I had no idea they did this. I also noticed that as far as I could see, their US dollar and Canadian dollar prices are identical now.

How amazing is that customer service?!!!

Mind you, I cannot really call it a refund because I took the cheque and put it towards a new plane I was eyeing! So it actually cost me money! By the way, their #4 smoothing plane is now $199. That is an amazing price for a fantastic tool.

Richard.