Price Changes in April
- Thread starter tbellemare
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I think that would be Connueces, Seth...
Tom
Tom
I just wanted to share my thoughts an feelings about the yearly price increases, not that anyone other than me cares to read about. I also want to say that Festool USA has been exceptional when I needed customer service (not very often) and Tom and Bob deserve an award for their efforts.
I understand that a company can do whatever they want with "their" prices, but this yearly price increase of 3%-4% (I don't know the exact average) does not make sense to me. At my place of employment the average yearly pay increase is 2%. Thankfully most, if not all, of the other companies that I buy hand tools from haven't really had price increases since I started buying quality tools 3-1/2 years ago, i.e. Lie Nielsen, Blue Spruce Toolworks and Lee Valley/Veritas to name a few. Actually I can't think of another company that "I" make purchases from that have a "yearly" price increase. The Apple products that I have purchased haven't increased in price in the last few years and I haven't check, but does Mafell have yearly price increases? I just don't see how a 3-4% increase every year is sustainable. So, in 10 years we will be paying over 30-40% for these tools?
I know, I know... I can do whatever I want with my money and I can choose to pay the increased prices or not and Festool can do whatever they want. It's just disappointing to see that Festool maybe pricing themselves out of the market, a lot of people can't justify the prices now.
I guess I should see if I need/want to buy anything before April 1st [tongue]
I understand that a company can do whatever they want with "their" prices, but this yearly price increase of 3%-4% (I don't know the exact average) does not make sense to me. At my place of employment the average yearly pay increase is 2%. Thankfully most, if not all, of the other companies that I buy hand tools from haven't really had price increases since I started buying quality tools 3-1/2 years ago, i.e. Lie Nielsen, Blue Spruce Toolworks and Lee Valley/Veritas to name a few. Actually I can't think of another company that "I" make purchases from that have a "yearly" price increase. The Apple products that I have purchased haven't increased in price in the last few years and I haven't check, but does Mafell have yearly price increases? I just don't see how a 3-4% increase every year is sustainable. So, in 10 years we will be paying over 30-40% for these tools?
I know, I know... I can do whatever I want with my money and I can choose to pay the increased prices or not and Festool can do whatever they want. It's just disappointing to see that Festool maybe pricing themselves out of the market, a lot of people can't justify the prices now.
I guess I should see if I need/want to buy anything before April 1st [tongue]
weekendwarrior
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I guarantee the pending price increase makes more people buy more tools that they otherwise would. How many years can that continue? Obviously not sustainable forever, but there must be sufficient demand for Festool to not worry about pricing themselves out of the market.
Runhard said:
They work in very different markets.
Runhard said:
When a Festool is about the same price the Mafell will be a no brainer, especially if they get an expanded distribution in the US, one outlet in Maine isn't gonna cut it.
Runhard said:
With no serious competitor at the same price point this is how it will be. The green coolaid drinkers will keep coming back for more, and those needing to spend less will buy used or refurbs or go with other brands.
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Back in 1978 I started working for a retailer who produced a catalog with pricing for an entire year. They were innovative and helped change retailing pricing in the US. In their segment of the retailing world they grew to be the market leader in so many ways. I worked for that company 5 different times eventually working in their headquarters and setting up cost tracking systems and purchasing programs and running construction projects all over the US. I loved that company and believed in that company almost as much as I believe in another.
The model of setting prices for an entire year has a bunch of risks. Most contractors will submit a proposal with a limitation that it is good for a limited time - 30 or 60 days. The costs change. If you are even a contractor and want your prices valid for a YEAR then you will add in a fudge factor unless you are - pardon the phrase - "a foolish gambler".
Throw in the uncertainties of a global economy and there are even more considerations. There is no perfect crystal ball. This is a company with a track record of looking forward versus resting on their laurels. They don't believe in innovating to a certain price point as dictated by the retailers as other companies do. They just develop a product and then sell it for what they think it is worth.
Same as you and me if you work in the trades.
Hobbyists certainly will have a different view. And theirs is valid. But at the end of the day trying to keep a price valid a year in advance is a crap shoot. I know that I can't predict what the cost of hamburger will be next week at the grocery store let alone 4 months from now.
I only offer these as thoughts from perhaps a different perspective. You are all entitled to your opinions and they aren't right or wrong from my view.
Peter
The model of setting prices for an entire year has a bunch of risks. Most contractors will submit a proposal with a limitation that it is good for a limited time - 30 or 60 days. The costs change. If you are even a contractor and want your prices valid for a YEAR then you will add in a fudge factor unless you are - pardon the phrase - "a foolish gambler".
Throw in the uncertainties of a global economy and there are even more considerations. There is no perfect crystal ball. This is a company with a track record of looking forward versus resting on their laurels. They don't believe in innovating to a certain price point as dictated by the retailers as other companies do. They just develop a product and then sell it for what they think it is worth.
Same as you and me if you work in the trades.
Hobbyists certainly will have a different view. And theirs is valid. But at the end of the day trying to keep a price valid a year in advance is a crap shoot. I know that I can't predict what the cost of hamburger will be next week at the grocery store let alone 4 months from now.
I only offer these as thoughts from perhaps a different perspective. You are all entitled to your opinions and they aren't right or wrong from my view.
Peter
JavierMoreno
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Peter Halle said:
In Spain and Germany, at least, Festool publish a catalog with the prices a year in advance. This is the link to the current catalogs (for year 2015):
https://eflip.database.de/Festool/HK_2015/ES/index.html (Spain)https://eflip.database.de/Festool/HK_2015/DE/index.html (Germany)
I think that in Spain and Germany prices won't be increased until at least january, 2016.
JavierMoreno
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