Price increase -yep, April 1.

[Bob Marino]

  Hey Guys,

It's official and it's no April Fool's joke, but there will be a Festool price increase on most items. Though the Exchange rate has been favorable there are more pieces to this more expensive pie to explain the increase. Having said that, prices will increase on April 1. So, open up your shop (and your wallet) take a look and decide if there's reason to buy now and save some coin. I will have the new prices available up on my site soon - even though Tom B,  did a good job of posting 'em here.

  Bob

 

[SittingElf]

  Hey Guys,

It's official and it's no April Fool's joke, but there will be a Festool price increase on most items. Though the Exchange rate has been favorable there are more pieces to this more expensive pie to explain the increase.

Yeah, Festool didn't want the Canadians to feel singled out due to their March 1st increase!  [wink]

 

[rljatl]

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

 

[Cheese]

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

Implementation would be a nightmare.

 

[Bob Marino]

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

Implementation would be a nightmare.

Agreed.

Bob

 

[rljatl]

Yes, I can see how it would be impractical to keep old and new separated and then ship the correct one.

 

[AlexThePalex]

And then you have to do the same thing next year. So you still pay a full year at one price. Futile.

 

[butzla]

There is a silver lining to a Festool price increase.  It raises the value of your current tools in terms of resale.

 

[jeh]

A 3-5% increase does little if nothing to the resale value of tools. Used is used and prices vary wildly depending on who you sell to and where the selling is done.

 

[Ben.ArtisanWoodcraft]

Is it really just 3-5%??

 

[bkharman]

the average of $10-15.00 increase on disposables and the $50-75.00 increase for larger ticket items doesn't bother me at all.  Every company does price increases... it is the nature of business.  How else would we be able to start tall tales with... "when I was your age, the cost of blah, blah was blah!!"

Cheers.  Bryan.

 

[elfick]

the average of $10-15.00 increase on disposables

I think you meant $1-3

 

[bkharman]

the average of $10-15.00 increase on disposables

I think you meant $1-3

Yeah, basically...  [wink]

I think it is crazy that there is this much discussion (every year) about some of this.  It boils down to a few cups of coffee each week... either cheap stuff from UDF (7-11) or Starbucks... either way, this is not a bad price hike!!

Cheers.  Bryan.

 

[SittingElf]

I don't want to beleaguer this point, but it IS a fact that the dollar has increased in value by more than 20% since the last price increase against the Euro.  A price increase in dollar based currency is a little appalling considering that the Consumer Price Index (CPI) in the U.S. is up only about 2% in the same period. So the Dollar has increased dramatically against foreign currencies, and our inflation level is unbelievably low.

It would be very difficult for Festool to justify this increase to their customers based on those figures, and points more to just a plan to regularly increase prices annually, regardless of real economic conditions or costs.  That being said, they can do whatever they want to...despite the fact that it will cause some ill will amongst their aficionados. I hope this means a big bonus is in the works for U.S. Festool Employees...Otherwise it's just price gouging. There is no other explanation.

I wish I was back in Germany right now, not subject to Germany VAT (19%) due to military status of my wife. My cost for the same tools would be significantly cheaper than the new prices in the USA.  I was buying in Germany last year at $1.39 to the Euro. It is now $1.10.

Just my  [2cents]

Cheers,

Frank

 

[vkumar]

Frank I do agree with your analysis.  But Festool goes through these price increases, every year because they can. There are folks like you and me that will pay, and as long as we exist this will happen.

But sooner or later this market will saturate and for increased revenues Festool will have to become more competitive.

I dont understand why in the UK dealers are allowed to compete but not in the US--is it because we get more hand holding in the US and thus the justification- I doubt it.  I get all the help an advice from this forum and not from the dealer. Retail price maintenance is allowed in the US but not in the UK.

But it is what it is and is part of market economics.  Price is determined by supply and demand.

Vijay

 

[Ujipster]

A tool is only worth so much to the middle income fellow. Festool is pushing the limits in my opinion. There are already pressures at work. Economy will be changing in June with rate increases - hmm ya think that will slow down home remodels? Competition is now making tools of like kind albeit not as solid, but it can take a bite out of sales. I predict that we will see some changes in the market soon. We already saw the first sale from Festool that I can remember. Maybe we will see more of that tactic as prices increase and get out of reach of the average consumer.

If you got the money spend it! They are great tools! I love them and even more that I dodged three price increases three years ago with the bulk of my purchases!!!
T

 

[Rob Z]

Frank,  Price gouging would be if someone charges $150 for a sheet of plywood after a hurricane has caused a lot of damage.  The fact that Festool isn't responding we the way we would like  to movement of the dollar relative to the Euro does not rate as price gouging.

As long as this forum is filled with threads from gushing new owners posting pictures like they've brought their first born home from the hospital, Festool will be able to continue to get what they want to get on the pricing.

 

[Gary in Texas]

But sooner or later this market will saturate and for increased revenues Festool will have to become more competitive.

I dont understand why in the UK dealers are allowed to compete but not in the US--is it because we get more hand holding in the US and thus the justification- I doubt it.  I get all the help an advice from this forum and not from the dealer. Retail price maintenance is allowed in the US but not in the UK.

But it is what it is and is part of market economics.  Price is determined by supply and demand.

Vijay

Very true.  Perhaps the UK market is more mature than is the USA market, when the U.S. reaches that same level, prices will need adjustment, or sales/discounts will come into play....  I think the U.S. market is huge, but Festool is pricing themselves slowly out of contention.

 

[abgoto]

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. 

 

[elfick]

You forgot our northern brothers...
OF2200 in Canada: 1168 CAD = 853.22 euros