Price Increase Anaysis

Well, I am only assume that the price was not correctly changed in our internal order system, which updates the website nightly.

I have manually corrected the package price and will check to make sure it's corrected in our system on Monday.

Thanks for the heads up.

Shane
 
Thanks for clearing up the confusion, Shane!

Especially on your weekend...

Tom
 
batcave said:
The biggest increase was my credit card statement. The biggest decrease was my savings account. [embarassed]
I'm in this boat too, here in Canada we didn't get off so lightly. :(
 
Shane,
Are there short term product shortages due to all the orders before the price increase? I'm being told that TS55s and MFT/3 are on backorder.

Also, do I get a free tee shirt or bumper sticker for finding the pricing error? hehehehe, just kidding, I'd rather have my saw and table.

 
Oso Rojo said:
Are there short term product shortages due to all the orders before the price increase? I'm being told that TS55s and MFT/3 are on backorder.

Dealers making a run in advance of the price increase did indeed clear us out on some products, the TS 55 REQ and MFT/3 being two of them. We have stock inbound. Here's what I see for ETAs on those two products. That's assuming your dealer has not ordered them yet. If they've ordered, they may ship sooner. This is just the ETA if they order today.

495462 Multifunction table MFT/3 4/17/2014
561556 Circular Saw TS 55 REQ 4/23/2014
 
foxvalley63 said:
Do you have a date for the Domino XL 700 non set?

I don't see that we are currently showing a backorder for it. However, it's possible that it was only recently back in stock. Your dealer should get shipment notifications from us via email with tracking info. They could likely give you an ETA at this point.

Very sorry. I overlooked it in the list. Oops.  [embarassed]

574422 Domino Joiner DF 700 5/8/2014

Again, that based on an order placed today. Orders placed prior to today could be shipped sooner.
 
Shane Holland said:
Well, I am only assume that the price was not correctly changed in our internal order system, which updates the website nightly.

I have manually corrected the package price and will check to make sure it's corrected in our system on Monday.

Thanks for the heads up.

Shane

Question for you Shane. I'm new to the FOG and a new member of GKADA (Green Kool-Aid Drinkers Anonymous) and my question is related to price increases (or decreases). I understand that all dealers are required to sell at MSRP or near MSRP prices for new or the latest iterations of Festool products. What about older versions or over stock? For example, I know of a dealer (that shall remain nameless for my advantage  ;) in case the answer is favorable to me), that has older versions of dust extractors (non T-LOC versions) that reflect pre-April pricing (or earlier - not sure). Since these are earlier versions, are they allowed to sell these at lower pricing for clearance purposes? Sorry for the silly question.
 
ElCabong said:
Question for you Shane. I'm new to the FOG and a new member of GKADA (Green Kool-Aid Drinkers Anonymous) and my question is related to price increases (or decreases). I understand that all dealers are required to sell at MSRP or near MSRP prices for new or the latest iterations of Festool products. What about older versions or over stock? For example, I know of a dealer (that shall remain nameless for my advantage  ;) in case the answer is favorable to me), that has older versions of dust extractors (non T-LOC versions) that reflect pre-April pricing (or earlier - not sure). Since these are earlier versions, are they allowed to sell these at lower pricing for clearance purposes? Sorry for the silly question.

I can't answer for Shane but in the past (and I believe it to be the case with the now discontinued non T-Loc Midi/Mini) Festool allows discounted pricing for discontinued items.  So I believe the price you're seeing on the old Midi/Mini are good. 
 
The only thing that manufacturers can legally "require" regarding pricing is on advertising. It is perfectly legal for them to forbid advertising below MSRP. Actual sales pricing cannot be directly controlled.

That being said, the retailers are fully within their rights under the Sherman Anti-Trust Act in the USA to actually sell a product for whatever price they choose... even at a loss. They just can't advertise that price if a contract forbids it.  The problem arises when said dealer gets a reputation for selling below their competitor's pricing and regularly discounting.  The manufacturer or distributor may then find some other justification to remove authorized dealer status from that retailer and thereby take away his/her ability to sell those products.

I personally went through this back when I had a small chain of retail computer stores in the 80's.  IBM in those days had a iron-clad, hard rule about advertised pricing on their new IBM PC. The reps would tell you that you were fully within your rights to actually sell the computer for whatever you wanted, but if they found you were discounting it, they would find some other reason to cancel your authorization... and I knew of a few other dealers who were in fact shut out through one method or another. True Big Blue, Big Brother tactics!

This is not to say that Festool is anything like IBM, though there ARE 'some' parallels, just as there are with many, many other manufacturers. The final reality is that the customer is always the King in the end, and if the price point on a given product meets the perceived price/value to the end user, then a sale is made. Otherwise, the product will languish on a shelf. Clearly, Festool products meet that value perception!

Cheers,

Frank
 
SittingElf said:
The only thing that manufacturers can legally "require" regarding pricing is on advertising. It is perfectly legal for them to forbid advertising below MSRP. Actual sales pricing cannot be directly controlled.

That being said, the retailers are fully within their rights under the Sherman Anti-Trust Act in the USA to actually sell a product for whatever price they choose... even at a loss. They just can't advertise that price if a contract forbids it.  The problem arises when said dealer gets a reputation for selling below their competitor's pricing and regularly discounting.  The manufacturer or distributor may then find some other justification to remove authorized dealer status from that retailer and thereby take away his/her ability to sell those products.

I personally went through this back when I had a small chain of retail computer stores in the 80's.  IBM in those days had a iron-clad, hard rule about advertised pricing on their new IBM PC. The reps would tell you that you were fully within your rights to actually sell the computer for whatever you wanted, but if they found you were discounting it, they would find some other reason to cancel your authorization... and I knew of a few other dealers who were in fact shut out through one method or another. True Big Blue, Big Brother tactics!

This is not to say that Festool is anything like IBM, though there ARE 'some' parallels, just as there are with many, many other manufacturers. The final reality is that the customer is always the King in the end, and if the price point on a given product meets the perceived price/value to the end user, then a sale is made. Otherwise, the product will languish on a shelf. Clearly, Festool products meet that value perception!

Cheers,

Frank

A most excellent response. We'll said!
 
Back
Top