US Dollar vs. Euro adjustment

[Greg Ladd]

Given the dramatic increase in the value US dollar vs. the Euro, why are the Festool prices here in the U.S. not reflecting the change.

Honestly, I love the Festool tools I have purchased at what some consider very high prices. I also feel Festool should adjust their prices to reflect the value of the U.S. dollar. I have to believe their business model and structure is based on the Euro currency. Am I wrong to think prices should be coming down based on the current exchange rate?

Greg

 

[AlexThePalex]

You don't want to know how much those Festools cost over here. You already got them pretty cheap compared to the rest of the world. The euro to dollar conversion got nothing to do with it because the way tools are priced in America is not a simple conversion from Euro prices.

 

[anthonyz]

I just looked up the Domino on a German site and if you bought it there with US currency you would pay almost $100 more. We seem to get the deal. Thanks for the insight Alex.

You don't want to know how much those Festools cost over here. You already got them pretty cheap compared to the rest of the world. The euro to dollar conversion got nothing to do with it because the way tools are priced in America is not a simple conversion from Euro prices.

 

[Greg Ladd]

It would seem to me Festool could use the relative strength of the U.S. dollar now to dramatically increase their market share here in the U.S with lower prices. Lower prices here with the strength of the dollar without hurting the bottom line (in Euros) would seem like a win-win for Festool to me.

I understand Festool has to compete and set prices based on a given market but I also believe they would set prices at level to give them a certain profit in Euros. To not adjust prices when the dollar is worth more just doesn't seem quite right to me.

With all due respect, to keep prices higher here when our money is worth considerably more in Euros feels unfair. At a minimum, an annual price increase would seem very difficult to justify when the dollar is up around 18% over a year ago.

All that being said, I will probably buy more Festools regardless but U.S. customers should get credit for the increase in the strength of our currency.

 

[Slartibartfass]

It would take a considerable amount of time for any Fx savings to find its way into the U.S. market due to the supply/production chain involved in manufacturing the tools.

 

[feelgreat]

We over here have the same problem with apple prices. They are always more expensive than in the USA!

 

[andy5405]

I wouldn't even begin to understand how an organisation that trades globally would set it's prices in different regions but I would hazard a guess that it is governed by a far more complex process than simple currency fluctuations. Even if it was that simple it would surely be something that is far too volatile to base price upon. The stock that dealers sell today might have been purchased during entirely different market conditions and frequent price fluctuations could be disadvantageous to some and beneficial to others. I'm sure  it's all about swings and roundabouts in all parts of the channel and I doubt there would ever be a thread where end users recommended that Festool raise their prices as they were at a disadvantage due to the current exchange rate.

 

[SittingElf]

I just looked up the Domino on a German site and if you bought it there with US currency you would pay almost $100 more. We seem to get the deal. Thanks for the insight Alex.

You don't want to know how much those Festools cost over here. You already got them pretty cheap compared to the rest of the world. The euro to dollar conversion got nothing to do with it because the way tools are priced in America is not a simple conversion from Euro prices.

With respect, the prices shown in Germany include a 19% Value Added Tax. Take away that tax and see what the price is then!

Frank

 

[AlexThePalex]

I just looked up the Domino on a German site and if you bought it there with US currency you would pay almost $100 more. We seem to get the deal. Thanks for the insight Alex.

You don't want to know how much those Festools cost over here. You already got them pretty cheap compared to the rest of the world. The euro to dollar conversion got nothing to do with it because the way tools are priced in America is not a simple conversion from Euro prices.

With respect, the prices shown in Germany include a 19% Value Added Tax. Take away that tax and see what the price is then!

Frank

Yes, but unlike in America, we actually have to pay that tax.

 

[mastercabman]

I just looked up the Domino on a German site and if you bought it there with US currency you would pay almost $100 more. We seem to get the deal. Thanks for the insight Alex.

You don't want to know how much those Festools cost over here. You already got them pretty cheap compared to the rest of the world. The euro to dollar conversion got nothing to do with it because the way tools are priced in America is not a simple conversion from Euro prices.

With respect, the prices shown in Germany include a 19% Value Added Tax. Take away that tax and see what the price is then!

Frank

Yes, but unlike in America, we actually have to pay that tax.

In some states  We do pay a sale tax
But no where near 19%