USA price increase March 2012?

[hockey_magnet]

We've been trying to wrap our heads around this issue for years up in Canada. Always some BS excuse to charge us 15-20% more for everything.

Well, I'm sure there is additional costs involved in selling products in Canada.  For one it's less densely populated with less transportation infrastructure so you can expect a higher pricing per person than the US.  It's a smaller market, with smaller distribution networks, that adds to the costs.  And so on and so on....   

You're on the right track Brice, and there are other reasons as well, especially when it comes to how long it takes for prices to adjust after the value of the dollar changes.  Problem is, most Canadians don't want to hear it despite being told many reasons there are justifications for these issues..  As much as I would like cheaper prices here, I accept there are real reasons for the disparity.

While there is some truth re distribution  and other factors, the fact is that many imported goods ARE priced within a few points of U.S. pricing., which makes it hard to undertand when they are not.  Also actual shipping costs are not much different than in the U.S. and while Canada is technically not as densely populated as the U.S. the vast majority of our population lives in very close proximity to the U.S. with north/south shipping corridors, both rail and road, so that is a bit of a red herring. Regardless, I'm not specifically complaining about Festool pricing, just the perceived disparity.

 

[bartmes]

Warning: Boring economic facts.    The Euro has ranged from a high of $1.599 to a low of $1.1942 in the five years 1/17/2007 to 1/12/2012 and is presently $1.279.  The Euro has actually declined vs. the dollar by 1.9 percent over the period of time.  My source is the European Central Bank.

What ever the "cause" of Festool price increases in the past five years, it ain't a weak dollar.

 

[Sean7a]

ccarolladams, amen.  Spoken from the heart.  Even if I disagreed with you, I would have been persuaded.  You make some very valid, strong, clear as day points that many miss.

 

[Brice Burrell]

ccarolladams, amen.  Spoken from the heart.  Even if I disagreed with you, I would have been persuaded.  You make some very valid, strong, clear as day points that many miss.

Yes Caroll has good point.  Really, he's preaching to the choir about the value of Festool products here.  On the other hand, value is relative thing.  Value is also relative to each person's particular circumstances.  In other words what adds value to something for Carol may not hold true for me.  He's running a successful production cabinet shop.  He has a much larger tools budget than probably anyone on this forum.  Festool can raise the price and he may not bat an eye.  For the small one man operation there isn't much room to take a little out of the profits to give up to Festool price increases. 

The margin between Festool and the main stream tool brand keeps widening, at a certain point the better value starts to swing back to the cheaper tool.  With price increases almost ever year Festool is not going to increase their market share but start losing ground.  Sure Festool makes awesome tools but I'm finding myself being more and more selective on which of their products has value equal to it's price tag.  That's fine for a specialty brand.  Festool has made gains on the main stream brands and I'm sure they'd love to have enough market share to be a main stream brand.  I just don't see that happening with this ever increasing gap in pricing. 

My point, I'd hate to be priced out of owning these first rate tools.......                 

 

[Kodi Crescent]

Warning: Boring economic facts.     The Euro has ranged from a high of $1.599 to a low of $1.1942 in the five years 1/17/2007 to 1/12/2012 and is presently $1.279.   The Euro has actually declined vs. the dollar by 1.9 percent over the period of time.  My source is the European Central Bank.

What ever the "cause" of Festool price increases in the past five years, it ain't a weak dollar.

Those Germans are bailing out the rest of Europe, hence the price increase.  They are passing those costs on to the consumer.

I bet this topic is great for laughs at the Festool offices.  All the speculation, most of it probably wrong.

 

[WarnerConstCo.]

I won't cry over 15 or 20 bucks here and there.

I also like the fact it makes my used tools worth more money.

Festool is about the only power tool out there that is worth more then 25% of its value used.

Try to get any decent money out of a 3 year old makita or whatever.

 

[Kodi Crescent]

No complaints here, just curious if anyone has the 2012 prices.  That would help me steer some of my immediate purchases.

As my father used to say to me before he whipped me, "bend over and grab your ankles".

 

[GreenGA]

Perhaps, but did he tell you it was going to hurt him more than it would hurt you?  [scratch chin]

As my father used to say to me before he whipped me, "bend over and grab your ankles".

 

[Scott B.]

I won't cry over 15 or 20 bucks here and there.

I also like the fact it makes my used tools worth more money.

Festool is about the only power tool out there that is worth more then 25% of its value used.

Try to get any decent money out of a 3 year old makita or whatever.

Kind of have to agree. We can't give away our old non F sanders.

 

[fdengel]

How likely that some of the parts (maybe electronics components) that Festool uses come from outside of Germany?

How is the Euro doing against whatever currency is used by its suppliers -- could be that their production costs are going up?

 

[Captainwrinkles]

Im assuming this increase will affect Canada too?

 

[Kodi Crescent]

Perhaps, but did he tell you it was going to hurt him more than it would hurt you?  [scratch chin]

As my father used to say to me before he whipped me, "bend over and grab your ankles".

No, he didn't.  But I saw parents say that to their kids on TV.  So one day I asked him if it did, and again, he replied "No".

Now if my mom was spanking me with her bare hands and I flexed my cheeks, well, that was a different story.

 

[GreenGA]

I remember telling that to my son.  His feigned hysterics were much more dramatic than necessary, or called for.  Regardless, over the past twenty five years, he has all but forgotten the incidents.  I on the other hand, still feel absolutely terrible and it bothers me to no end. [crying]  So I guess it can "hurt me more than it will hurt you".

Nuff said, onto more pleasant topics...  [embarassed]

Perhaps, but did he tell you it was going to hurt him more than it would hurt you?  [scratch chin]

As my father used to say to me before he whipped me, "bend over and grab your ankles".

No, he didn't.  But I saw parents say that to their kids on TV.  So one day I asked him if it did, and again, he replied "No".

Now if my mom was spanking me with her bare hands and I flexed my cheeks, well, that was a different story.

 

[woodie]

I remember getting more notice last time on what the actual price increases were going to be? Wasn't it 2 or 3 months in advance?

Really this price increase thing is an ingenious way to increase sales, although not one I particularly like as a consumer. Normally you have a sale and limit the time of the sale, creating that urgency to "buy it now" even if the item isn't needed.  If you do that frequently of course (e.g. MANY other brands) you drive the value of the product down.  I mean who wants to pay retail when you know a sale is probably around the corner?  So instead give people ample notice of a price increase... You get that same "have to buy it now" urge, but you increase the value of the tool... hmm [wink].  American car manufacturers take note.

Now to speculate on my first comment, why don't we know yet what the price increases will be? Maybe, it's because several tools will have price "decreases"... Kapex? Ha, wishful thinking on my part I'm sure. Guess we just have to wait and see  [sad].

 

[ShawnRussell]

preaching to the choir I am sure...

I bought a C12, TS55, and CS33 back in 2007 and 2008 and all of those tools are still going strong. I am a hobbyist but do a lot of set building and props for my church and I am surprised the batteries are still good. The tools are well balanced, quiet, and efficient.

I look back at the number of Dewalt combo kits I have bought and only the flashlight and chargers survive today.

I have had teenagers using my tools and they have been dropped countless times and I have not had to make any repair calls yet.

If only Festool had been stateside in the 1990s.

 

[ginocon]

I Agree with the price increases that can hurt  one (two) man shop operation/production profit margins. However imagine if you were using Mafell products.  My golden rule is that the jobs needs to pay for the tools and other costs otherwise it's dead end bussiness. I charge 1 saw blade, all routerbits and 5 to 30% of the tools used price as cost in each projects in order upgrade, service and expand.

 

[Wood_Junkie]

Yeah, I saw that last week.  Maybe Junkie with give us another spreadsheet showing all the increases.

Ask, and ye shall receive.    [smile]

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Continuing the tradition  (prior price analysis:  http://festoolownersgroup.com/ask-festool/expected-price-increases-in-'11/msg129551/#msg129551)

Here's some random trivia.

In the 2011 price increases, here are the five items that increased by the most (percentage wise).  4 out of the five are consummables.  3 of those are abrasives. 
The highest percentage increase was the 3-piece Cleaning set  (which was a TOTAL STEAL at $11.  Get one if you haven't already!!!!)
Product                                               2011 Price 2012 Price Diff      Pct Increase
492392 : Cleaning Set D27/D36 $11.00 $18.00 $7.00 64%
497204 : Abr Granat 80X133 P280 100X $25.00 $37.00 $12.00 48%
493866 : Polishing Spg D150 White F 1X $15.00 $21.00 $6.00 40%
493851 : Polishing SPG D125 5x $40.00 $56.00 $16.00 40%
453491 : Chip Guard, Repl. PS/PSB 300 $6.00 $8.00 $2.00 33%

The items with the largest dollar increase, were all packages.
Highest group:  Kapex + CT packages
Second:  LEX air sander + CT packages
Third:  HL850 planer + CT packages

The single item that increased the most $$ is the Kapex.  But very low percentage.
Product                                                 2011 Price 2012 Price Difference Pct Increase
561287 : KS 120 EB Miter Saw Kapex $1,300.00 $1,350.00 $50.00 4%

~84% of the abrasives are increasing in price.  The increase ranges from 3% to 9%.  In real terms this means $0.50 to $3.00 for most packs.  A very, very few are higher.

Guide rails are increasing an average of 5%.

My personal favorite tool, the CXS drill driver is only increasing $10 (4%).
My second favorite tool, and IMO Festool's signature item, the Domino is increasing $25 (3%).

 

[Rob Lee]

I Agree with the price increases that can hurt  one (two) man shop operation/production profit margins. However imagine if you were using Mafell products.  My golden rule is that the jobs needs to pay for the tools and other costs otherwise it's dead end bussiness. I charge 1 saw blade, all routerbits and 5 to 30% of the tools used price as cost in each projects in order upgrade, service and expand.

Hi -

More people should quote on that basis.... that's why so many lose their shirts as contractors or private businesses. It's not just about time - it's about sustainability, which means planned replacement, and even a small allowance for unplanned replacement.

Cheers -

Rob

 

[GhostFist]

Hey Rob, haven't been following this too closely, but is there a planned increase on Canadian prices as well? Kinda sucky if there is as we already pay more than our southern neighbors and our dollar currently has a higher value. I know there's more involved in pricing beyond the strength of our currency but as a consumer you have to understand the frustration.

 

[bionicus]

is there a planned increase on Canadian prices as well?

Yes