Price increase -yep, April 1.

[Kevin McConville]

abgoto - as I have said Festool is free to price their products how they see fit and you are free to feel they are fair, they don't need to be currency neutral around the world.

A couple of things to note;

- a year ago $875 USD gave Festool 634 EUR
- when the price increase goes through (at todays exchange) $900 USD gives Festool 816 EUR
- this is actually an increase to Festool of 28.6%

regarding the comparison to MSRPs in EU and GB my understanding is that dealers are free to sell the product for what the market will bear i.e. a free market, a concept apparently lost on us here in NA. So the actual price in EUR that our friends overseas pay may in fact be somewhat less than the prices you mentioned.

Even though it is a minor price increase in your currency it is a huge increase in Festool's currency and don't lose sight of the fact that your dollar strengthening has an impact on your economy in general and thus your clients available cash to spend on your services. As your dollar goes up it costs less to import things (except green tools apparently) which encourages companies to import (outsource) goods and services instead of making them on your home soil thus people lose jobs etc. One of the reasons you have had strong jobs growth in the past couple of years has been your relatively weak dollar and with more jobs their are more people looking to renovate homes etc.

Those are just my 2 cents (1.5 cents CAD) worth - Kevin

 

[SittingElf]

OF2200 in Germany:  942.48 Euros
OF2200 in England:  793.20 GBP = 1099.95 Euros
OF2200 in Australia: 1545.01 AUD = 1099.50 Euros
OF2200 in USA: 875 USD = 806.94 Euros
After price increase
OF2200 in USA:  900 USD = 829.99 Euros

I'd say that Festool pricing in the US is fair relative to the world market and that yearly price increases are likely to continue.

The prices listed for Europe generally INCLUDE VAT which is NOT the Festool price. When taking away VAT, you get a significantly different picture.  Germany 19%. UK 20-21% Etc...

Frank

 

[jcpsmallwoodworkershop]

OF2200 in Germany:  942.48 Euros
OF2200 in England:  793.20 GBP = 1099.95 Euros
OF2200 in Australia: 1545.01 AUD = 1099.50 Euros
OF2200 in USA: 875 USD = 806.94 Euros
After price increase
OF2200 in USA:  900 USD = 829.99 Euros

I'd say that Festool pricing in the US is fair relative to the world market and that yearly price increases are likely to continue.

The prices listed for Europe generally INCLUDE VAT which is NOT the Festool price. When taking away VAT, you get a significantly different picture.  Germany 19%. UK 20-21% Etc...

Frank

so the pre vat tax german price is OF2200 in Germany:  942.48 Euros/1.19=791 euros, which
means someone could say 791 euros if converted to dollars at 1.09 =862 dollars

which means to me festool is still selling cheaper in "usa"

thanks festool

by the way if SHANE was still around, this thread would have been killed a long time ago!

 

[semenza]

  The price comparison around the world and increase discussion has been debated many times on FOG. It generally ends up going no where, because it can't. There are many, many factors. The opinions expressed are fine as long as it doesn't turn personal. But no one should expect any result other than going around in circles.

Seth

 

[DB10]

Yep many factors are involved and currency rates are pretty low down on the list.
I think it all boils down to what a manufacture can get away with charging for a product in each market.

If Festool could get away with charging 3k for a full kapex set up in the USA that is what they would charge, they obviously can't so don't.
In Australia if you want the full Kapex set up you will have to part with nearly 3k because that is what they think the Ausie market will pay. This time last year the Ausie dollar was worth more than the USA dollar so that made the Kapex even more exspensive if you we're to use the currency comparisons, but they don't, Its all to do with what each market will tolerate.
In the USA you get a 30 day Money back guaranty on Festool tools, in UK it is 15 days and in Aus nothing, it doesn't exist, because that's what they can get away with in this market. Why offer something that's going to cost you money if the Market doesn't expect it. Most markets have different requirements based on what the people expect and that includes the price.

 

[RobWoodCutter]

Seems to me that existing stock should be sold at the old price while new stock should be sold at the new price.

Kind of a double edged sword...

If the price had actually decreased 10% on post April 1 stock, would you also be willing to pay the higher price until the old stock was used up?
If not, then how would someone like Bob ever sale the older higher priced stock? He had to pay a higher price for it to stock it originally, so you have to bear that burden.

Rob

 

[avanderhoorn]

Is this in America only or is this worldwide?

 

[Stephen B]

Is this in America only or is this worldwide?

[size=14pt]
Well, in Australia dealer discounting ends on April 1, so watch our now set prices climb! [eek]

As an example; if purchased today the Kapex 120 discounted price is approx. A$1690 compared to Festool's Recomended or if purchased direct price of A$1890.

Festool Aust was granted an exemption from the relevant Federal Government Authority [the ACCC], to allow it to fix prices. Price fixing is normally illegal in Australia. They attempted a similar thing in the UK and as we know from other discussions on the FOG, it failed.

It will be interesting to see if we get any benefits from this such as 15 or 30 day returns. I do not see returns as a great benefit to me and under Australian consumer law, returns in many circumstances are legal.
[size=10pt]
If further interested in this issue, please look at fairly recent discussion at -
http://festoolownersgroup.com/festool-sales-dealer-area/one-for-the-aussies/

 

[DB10]

It will be interesting to see how this plays out in Aus.
  I think in Aus we will get the same mediocre service that we currently get, certainly will not be in the same league as the USA, we won't get 30 or even 15 days to change our minds and get a refund. We will just get higher prices.
Festool sales will probably drop and we will probably loose a few dealers who will think its just not worth their time stocking Festool.
So we will end up with less choice to acquire Festool. Hope I'm wrong with this!
Just wish they put as much time and effort into improving service and new tool availability, as they did into this whole price fixing deal. Only time will tell.

 

[peter halle]

Regarding the pricing in Australia and the approval of going to a fixed price:  I think that this is interesting concept.  It will force the dealers to know the tools and be helpful to customers as a part of the justification process in order to justify higher costs and not competing based on discounting.  It will become time to prove themselves and the cream will rise to the top or the whole system will fail and with this being a conditional and closely watched approval this will be pivotal.

Peter

 

[elfick]

  I think in Aus we will get the same mediocre service that we currently get, certainly will not be in the same league as the USA, we won't get 30 or even 15 days to change our minds and get a refund. We will just get higher prices.

Doesn't AU have a government mandated consumer rights or return policy?

 

[Stephen B]

Regarding the pricing in Australia and the approval of going to a fixed price:  I think that this is interesting concept.  It will force the dealers to know the tools and be helpful to customers as a part of the justification process in order to justify higher costs and not competing based on discounting.  It will become time to prove themselves and the cream will rise to the top or the whole system will fail and with this being a conditional and closely watched approval this will be pivotal.

Peter

Peter
Your thoughts have merit Peter, all things being equal. However the main discounting dealer in Melbourne, for example; already offers excellent staff knowledge and friendly service. They are one of only 11 Premium dealers Australia wide.

http://www.festool.com.au/epages/tooltechnic.sf/en_AU/?ObjectPath=/Shops/tooltechnic/Categories/Dealers/Premium_Shops

Elfick
Yes we do already have government mandated consumer law which outlaws price fixing [or so we thought!]and allows returns in many circumstances.

So DB and I are just really wondering what we will gain.  Festool Aus is yet to make any comment to consumers via their website. The only official news has come from dealers.

 

[Bohdan]

Doesn't AU have a government mandated consumer rights or return policy?

Consumer rights - Yes

Returns - only if the goods are faulty or misrepresented in the advertising or not suitable for purpose.

If you change your mind - stiff.

 

[Paul G]

Regarding the pricing in Australia and the approval of going to a fixed price:  I think that this is interesting concept.  It will force the dealers to know the tools and be helpful to customers as a part of the justification process in order to justify higher costs and not competing based on discounting.  It will become time to prove themselves and the cream will rise to the top or the whole system will fail and with this being a conditional and closely watched approval this will be pivotal.

Peter

The cream is spoiled in my area. There's about 2 million folks in the Sacramento area and 1 Festool dealer, the local Woodcraft. Some guys there have a clue and others have more BS than Bandini mountain. Online dealers can help folks cheat on their local sales taxes, but beyond that there's no competition here to motivate our one dealer to prove anything.

 

[elfick]

The cream is spoiled in my area. There's about 2 million folks in the Sacramento area and 1 Festool dealer, the local Woodcraft. Some guys there have a clue and others have more BS than Bandini mountain. Online dealers can help folks cheat on their local sales taxes, but beyond that there's no competition here to motivate our one dealer to prove anything.

Sounds like a business opportunity for an enterprising local.

 

[Paul G]

Yea, there was another that closed down a few years back and they were worse than woodcraft.

 

[pugilato]

I can only hope that my tools last a long, long time, because regardless of the economic and rate of exchange mumbo jumbo, Festool may just price itself out of my market. A price increase every year has become the norm. I don't see my tools as a resale value investment. I see it as an investment to help me spend less time on a project, and stop me from having to replace tools that broke down (the planned obsolescence thing so common).

I don't collect tools, I use them. It appears that some buy festools as some sort of status symbol or to sell them later on ebay or whatever. Some are all right with the price increases and justify them. Me, I would love to buy a Domino, but fortunately I know how to do mortise and tenon joinery and dont really need it.