Price Increase in the US Market

[countrysideworkshop]

I haven't seen anything from Festool saying they are increasing prices in the US Market but I have heard from several people they are... Where they got that information I have no clue. Does anyone on here know if come March 1 we will be paying more?

 

[Paul G]

Curious also

 

[SittingElf]

I haven't seen anything from Festool saying they are increasing prices in the US Market but I have heard from several people they are... Where they got that information I have no clue. Does anyone on here know if come March 1 we will be paying more?

Considering that it is only a week away from March 1st, and remembering how much advance notice was given last year before the increase, I would think that it would be a long shot to expect a virtually unannounced price increase that fast.

That being said, they "might" increase prices this year, but IMHO, I would seriously doubt a March 1st implementation.

Frank

 

[JayStPeter]

I don't follow every year and every price increase, but April fools day seems like a "usual" time.  I do know that there is usually plenty of advance notice.

 

[peter halle]

I just checked.  Last year a dealer posted about it on February 28 for an April 1 date.

Peter

 

[jcpsmallwoodworkershop]

sorry to butt in but i feel people here dont realize that
the euro to dollar exchange rate, has dropped from 1.38 (last march
when festool pushed thru the about/approx 3- 5% price hike, not uniform)
and NOW? well the dollar has trounced the poor euro and
it is 1.12-1.13 depending on what collapses in europe, and
that is -20% drop, a price cut, as in any tool festool sell is usa
at last years price, has an extra 20 pct positive margin since they
produce in europe, euros and sell to americans for their 20% higher
dollars. i didnt make this up ask anyone how much cheaper europe has
become this year vs last.

so it festool raises prices now, can you imagine what happens when
the dollar drops?, i also bet the price of consumables will sustain another
price jump despite the currency drop, because festool can do it.

i also admit have not seen bosch or any german tool makers drop their
prices, so i dont expect this from festool, instead i have not seen any
tool makers within europe try to push a price hike yet.

 

[johnleve]

I thought that a strong dollar means they make less profit?

If they used to get 1.5 euro per dollar and now get 1.3 per dollar then to receive the same number of euros they need to increase the number of dollars coming in- increase the price.

 

[jcpsmallwoodworkershop]

I thought that a strong dollar means they make less profit?

If they used to get 1.5 euro per dollar and now get 1.3 per dollar then to receive the same number of euros they need to increase the number of dollars coming in- increase the price.

so when the exchange rate of 1.38 is quoted, it is the euro to usdollar, as
in the amount of dollars 1 euro buys in dollar, so 1 euro buys $1.38 dollars
or inverse $1.00 dollars buys .72 euros

and now 1.13 is the exchange rate which means 1 euro buys alot less dollars
or 1.13 dollars but the inverse $1.00 dollars buys .88 euros.

so if festool manufactures in euros (which dropped) and sells at the same
dollar price, they get an extra .16 euros than last year, .88 euros now, .72 euros last year
but they are not selling last year's inventory, well perhaps they are?

 

[johnleve]

Okay, I think I better understand how it works now.  For some reason in my mind it is hard to grasp the concept.  I search google for "euros per dollar" and you get a nice little graph which somehow makes it easier to understand, at least for me.

 

[Paul G]

Oh Shane, where are you?  [big grin] [popcorn] [poke]

 

[jcpsmallwoodworkershop]

by the way festool canada has raised prices and in that
case the euro has dropped against the canadian dollar
by about -5 % (euro weaker than the dropping canadian dollar)
and guess i see another thread with price hikes in canada dollar.

so i would expect a festool price hike. just when not if

 

[peter halle]

Oh Shane, where are you?  [big grin] [popcorn] [poke]

Why is Shane is missing in action and silent?  Has he been kidnapped by aliens?  Zombies? Or could it be that Festool won't comment on marketing and pricing?  Stay tuned....

 

[Paul G]

Oh Shane, where are you?  [big grin] [popcorn] [poke]

Why is Shane is missing in action and silent?  Has he been kidnapped by aliens?  Zombies? Or could it be that Festool won't comment on marketing and pricing?  Stay tuned....

Aliens....is there a connection to Festool Green there?

Yea I know Shane has to toe the company line, but it was worth trying  [big grin]

 

[peter halle]

Don't feel bad.  I can't pry anything out of him either.  I voted for zombies by the way.  [big grin]

Peter

 

[Tim Morris]

Peter you sound just like him (last line) you been hanging around a bit much maybe.  [unsure]

Why is Shane is missing in action and silent?  Has he been kidnapped by aliens?  Zombies? Or could it be that Festool won't comment on marketing and pricing?  Stay tuned....
[/quote]

 

[peter halle]

Tim,  if you are talking about me hanging around with Shane, actually I haven't seen him in almost two years.  [crying]  I will get a chance to see him at Festool Connect in a few weeks.  [thumbs up]

We have talked on the phone and conversed via email and PM.  He is a really cool guy and I am PROUD to call him a friend.  Just don't tell him.

Peter

 

[mouppe]

It's not that simple. Raw materials are generally priced in $US so Festool's production costs will have probably increased over the past year due to the currency exchange even though energy costs have dropped.

Also, these contracts are usually long-term so the short-term fluctuations are not directly translatable.

So there may or may not be a price hike but it's impossible to draw a conclusion just from the Euro/ $US exchange rate movement.

 

[Tim Morris]

Peter your secret safe with me.