Prices are changing soon...

[tbellemare]

I can't speak for Festool or Festool USA but I can make an observation...

My wholesale cost of most products has increased dramatically over the last few years. The increase in Festool products is casual in comparison.

Merely the cost of transportation of said products has easily doubled in a short time. For most Retail Buyers, that transportation cost is absorbed by the Sellers. So called, "Free Shipping", doesn't mean that the Shipping Company delivers your order for free... It means that your Seller pays the Shipping Company to ship it to you and you don't get charged for that ever-increasing, exhorbitant shipping fee... Nothing is free.

My overall observation is that products that are more material intensive seem to be going higher in price faster and a large part of it is transportation...

I don't see the Festool price changes over the last few years as any where near out of line with industry.

Tom

 

[Kev]

I never hear people complaining about pay rises.

 

[woodie]

Germany is the largest exporter in the world after China. I think they know what they're doing.
[/quote]

This implies that Festool is Germany? I would assume Tooltechnic Systems accounts for a pretty small percentage of German exports, as a whole.

Certainly the cost of raw materials and shipping has increased but wouldn't that lead to a consistent increase across the line (2%, 5% etc).  A 62% increase in scotch-brite, oh I mean Vlies? 110% increase on a foam backing pad for a RO150? I don't need to repeat the whole list as the randomness goes on and on.

I get that Festool makes quality tools, as I've a amassed quite a collection over the last couple of years. The question is, how much deeper are people willing to dig, while other tool manufacturers continue to reduce or maintain their pricing.

 

[mouppe]

Germany is the largest exporter in the world after China. I think they know what they're doing.

This implies that Festool is Germany? I would assume Tooltechnic Systems accounts for a pretty small percentage of German exports, as a whole.

Certainly the cost of raw materials and shipping has increased but wouldn't that lead to a consistent increase across the line (2%, 5% etc).  A 62% increase in scotch-brite, oh I mean Vlies? 110% increase on a foam backing pad for a RO150? I don't need to repeat the whole list as the randomness goes on and on.

I get that Festool makes quality tools, as I've a amassed quite a collection over the last couple of years. The question is, how much deeper are people willing to dig, while other tool manufacturers continue to reduce or maintain their pricing.

[/quote]

I was responding to someone else's generalizing post and not commenting on Festool specifically. I don't to be drawn into an irrelevant tangent to this thread so I won't comment further.

 

[tiralie]

My overall observation is that products that are more material intensive seem to be going higher in price faster and a large part of it is transportation...

Exactly!
Shipping (couriers, delivery) and transportation (car, truck) costs (maintenance, repairs, fuel) are shocking when you add them all up over the year.
I need my vehicle, but every time I need to fill it with gas I want to puke at the cost.
Tim

 

[peter halle]

Tom did mention in his opening post that there are some inconsistencies that are being addressed.  I take that to mean that the pricing may change on some items.  Festool generally publishes and keeps their prices for a year or more.  A wrongly priced item generally has an impact for a long duration.  

I personally hate tables that have percentages in them.  I don't pay in percentages and a small change on a smaller number equals a large percentage change.  Here is a real life example:  When I started my business and made changes to my charges to customers I heard much more discourse because they looked at percentages.  As my rates have increased and changes have been made the percentage of increase has declined but the dollar change has increased.

I would personally venture a guess that some of the changes are corrective in nature in addition to changing for material increases, improvements, etc.  Whereas it has been written here on the forum that Festool will not discuss it's marketing and pricing, I wouldn't expect any sort of clarification or comment.

Festool has always been about designing a quality product and then pricing the product versus building a product to a price point or building a product and then whittling down components and features to get to a price point like other manufacturers.

My personal opinions and thoughts will surely vary from those of other members, but I would rather have to consider a tool at a higher price than a tool with reduced quality at a lesser price.  I still have the ultimate control of purchasing or not.

Peter

 

[Rob Lee]

Hi -

Transportation and materials do play a part.

I suspect the 8.2 million Euro anti-trust fine had a part to play as well.... that's real money, and comes directly out of margin....

Overall - it's difficult to get a handle why specific costs go up. Not only are you looking at different countries, there is also exchange risk that has to be factored in. Given current market conditions - both the USD and Euro are "risk-on" ....

The increase in the US is not out of line with what we've seen from other European suppliers....

Cheers -

Rob

 

[skids]

Addiction = sales.

Yep! But...The thing the Germans aren't quite accounting for with the American market, since they more familiar with a planned economic environment, is when the competition catches on and starts producing competitive products that folks here are willing to purchase instead. Let's take the miter saw market in it's current state. It's a collective joke, with nothing that even comes close to acceptable once you've used a Kapex. Then there is the Kapex, sitting there shining like a Beacon of hope for us all-at a price...But what happens when Bosch or someone else produces a saw with Kapex qualities for $800.

Markets always figure this stuff out, maybe not on our timelines, but they do. My feeling is Festool is completely ok with pricing out the hobbyist with increases like this, and I suppose going after the contractor only market?? Which is a shame, because most contractors are so set in their ways, good luck convincing them they should change to a new high-priced tool. Better off with hobbyist homeowners (tweenie types) if you ask me, they are the one with the cash to burn and willingness to try new tools.

Pricing can't continually go up, or I am out of the game. I love my Festool tools, but I love my principals more. A price increase when prices are already through the roof is just starting to make me feel like an idiot when I show other people I own Festool. Honestly, when people ask me what the Kapex costs, I lie (this includes my wife). It's becoming the Luis Vuitton of power tools. 

Germany is the largest exporter in the world after China. I think they know what they're doing.

agreed..Doesn't mean it's a sound strategy.

 

[andvari]

It seems to me the tool price changes are moderate. $25 is certainly not going to stop me from buying a Kapex should I decide I want one.

What is disturbing are the steep increases on many abrasives. There have been good increases the past couple of years as well.

The standard quantities available in the US are difficult for a hobbyist to deal with. Dealers like Tom of course offer assortments which are greatly appreciated. It would be nice if Festool were to come up with a solution to this outstanding issue.

 

[ccarrolladams]

What I appreciate about Festool is that they are willing to do the R&D to create many tools vital to me. They set a price that allows them to stay in business. I can afford Festool prices and my Festools have helped me earn a substantial income. When I encounter a Festool that I do not think will improve my work flow, I do not buy that tool. It makes no difference the price point.

Some tools, such as the Domino XL 700, do not obviously have a use in my own work. However, like the Domino 500, I bought one so all of us in my shop can get familiar with it. Clearly there are projects for which the Domino XL is the answer.

It is important to me that the manufacturer of the tools I need remains in business during my lifetime. To remain in business firms must make a profit.

 

[Jalvis]

As a business owner there are always good reasons to raise prices.  Things like 'risk' are hard to quantify and the ever present inflation margin as well as the hidden 'fees/additional charges' that constantly raise cost.  Festool is a smart manufacturer and I applaud there strategy....if only I was so smart!  As the price increases the desire for competitors goes up.  I'm in favor of a notable competitors stepping in for the USA market!

As for the abrasive costs:  There are other brands to consider.  I know a cabinet builder who buys regular stick on abrasives and uses a hole punch.  He told me the cost is a third of Festool.  

Whats the word on Mirka sand paper?

 

[skids]

What I appreciate about Festool is that they are willing to do the R&D to create many tools vital to me. They set a price that allows them to stay in business. I can afford Festool prices and my Festools have helped me earn a substantial income. When I encounter a Festool that I do not think will improve my work flow, I do not buy that tool. It makes no difference the price point.

Some tools, such as the Domino XL 700, do not obviously have a use in my own work. However, like the Domino 500, I bought one so all of us in my shop can get familiar with it. Clearly there are projects for which the Domino XL is the answer.

It is important to me that the manufacturer of the tools I need remains in business during my lifetime. To remain in business firms must make a profit.

Correction: they set a price that the market will bear. They're doing just fine with or without the US market too. Really what your paying for isn't just to keep the lights on, but for some German fellas retirement account. No one is saying they can't make profit either. Point is, the prices are already super high, and while raising them may not affect someone who is able to generate income from the tools, a hobbyist generally can not. And there seem to be alot of hobbyist floating around some of the distribution channels Festool uses. Ultimately someone who doesn't make money with the tool will be alot more sensitive to increases. That would be me..I love this stuff, and LOVE my Kapex. But the more the prices are raised, the less it make sense to look to Festool for solutions to my workshop.

 

[Deansocial]

I never hear people complaining about pay rises.

Ill mull that 1 over if i ever get 1

 

[Bikeboy80]

I will surely be ordering some p36 abrasives for my Planex before the price changes, going from $30 to $65!  [scared]

 

[EdL]

Glad I've got what I've got, other than "disposables", no more Festools for me. The last price increase pretty much done me in, game over this time.

Ed

 

[Deansocial]

Looks like they are hitting the consumables, therefore hoitting all those that already own festools

 

[AlexThePalex]

I notice this thread emerges every year in december. People got a lot to say, but in the end nobody buys any less Festools. 

 

[harry_]

I notice this thread emerges every year in december. People got a lot to say, but in the end nobody buys any less Festools. 

[thumbs up] [dead horse]

 

[Trumpet]

Looks like they are hitting the consumables, therefore hoitting all those that already own festools

Even more so than it first appears - I stripped out the abrasives and put ran the comparable prices in a spreadsheet.

Abrosaives - up around 15%

Eveything else overall rise of 2.85%.

Considering some of the eyewatering rise in the cost of some/most materials got off lightly really, but then looks more when you look down the list in monetary terms due to high initial pricing. Suspect that they work on an overall increase and then looks at relative sales figures of individual models and then juggle pricing to suit increase/decrease in sales as a result of previous price changes or natural demand for individual products through their life cycle.

Bottom line for me is that the tools are in general so good that I have been happy to kit up with second user tools with probably only about 1/5 of the overall cost actually bought new.

 

[Birdhunter]

In comparison to high end custom or semi-custom pistols, rifles, and shotguns; these price increases are minor.

Really nice firearms go up about 10% a year. The wait time for a really nice semi-custom pistol is 14 months and going up. A nice semi-custom shotgun wait time is 18-24 months and can be a lot more.

There is no wait time for Festool products.

I think what we are seeing isn't so much a price hike by Festool, but the direct effect of our currency being debased and inflated by government monetary policies.