U.S.$ is now up 8% over the Euro. Will Festool USA drop prices if it continues?

[sancho57]

Frank,

I doubt if will affect US prices. No conversion rate there, a buck is a buck, now if you were to come back to Europe the conversion rate will help you.

 

[AlexThePalex]

....and Festools' production line for 110 is very small compared to the 220v line.

A lot of the stuff in this thread is speculative, so I'm not going to address all of it. But, 110 and 220 tools are produced on the same lines during different runs. So, it has nothing to do with production capacity. Also, without knowing how many tools are sold in North America vs the rest of the world and other variables, it would be a guess as to the economics involved.

Maybe the word "line" I used isn't exactly proper, as in "physical assembly line" in the actual factory. Nevertheless, some parts are different between 110v and 220v, and Festool or it's suppliers have to use different machines or molds to manufacture them. They all get their allocated place and time in the production process.

But as for actual production "output" it is seems pretty obvious to me that Festools' 110 volt production is relatively small compared to their 220 volt production. 

 

[jimbo51]

Maybe Festool will not raise US prices next year. That would be something at least.

 

[jcpsmallwoodworkershop]

hi festool

in march thru may 2014, around when festool pushed thru the price hike,
of 25 bucks or more on most items the euro/usd was around 1.38 to 1.4.
and today? 1.25 and probably 1.24 monday.
so thats now a drop -10% and this should account for any 25 buck price
hike and turn it into a 25 buck price drop.

most people in "usa" are not aware of currency fluctations, the dollar is
the dollar. right?

 

[leakyroof]

This is amusing ... maybe the exchange rate movements will bring some equalisation so that the rest of the world no longer needs to fund Festool's march into North America!! [wink]

Something to consider - stock in the US warehouse doesn't instantaneously vary in value relative to the international exchange rate.

Speaking from a corner of the world that is severely influenced by international exchange rate changes (Oz), negatives are typically passed on and positives are banked.

Kicking and screaming you may go, but please realise you are part of a global marketplace and as the US market dominance is diminishing, you'll see more of this.

The reality is we're on a planet where things will be sourced at "source" and you'll pay for shipping - that fact will then blow back and influence point of manufacture.

Please fasten your seat belts. [wink]

  Kev, you're funding me?.... No wonder I feel like a cheap date [poke] [bite tongue]

 

[sancho57]

You 2 need to get a room [oops]