Value of reconditioned tools

[Janmara1]

Another pricing challenge to face.  If you purchase a reconditioned tool that has a 10% price reduction and live in one of 13 states that festool now considers a tax hub your getting screwed . Festool will charge sales tax regardless of whom you deal with.Why purchase a reconditioned tool with a real savings of only 2% or so.  Many states sales taxes are apprx 8%
  Festool will either have to raise their discount or they will see their reconditioned business dry up

 

[copcarcollector]

You are actually getting taxed on 10% off the retail price (in this example).

So a $100 tool lets say, now you are paying sales tax on $90.00 instead.

I agree that 10% discount plus tax is minimal. However these Recon sales are quite popular, I don't think Festools recon business is going anywhere.

 

[grbmds]

I pay sales tax on all things I buy; not 10%, but either 6% or possibly as much as 8%, depending on whether I buy it in Illinois or Wisconsin. If I buy online, many times I am subject to the sales tax in my area regardless. So, I don't think it matters. I'd be paying the sales tax on a new tool also; more in dollars because the price is higher. Actually, I would never buy a reconditioned tool for 10% off. There is not enough difference to make it worth the fact the warranty drops to 1 year and there is a "sales final" policy. Even the 20% tools are borderline and only depend on what they are. The only reconditioned tools I bought at 20% off were tools I would not necessarily use heavily (or at least thought I wouldn't). Everything else I've bought new.

 

[mlfaber]

I pay sales tax on all things I buy; not 10%, but either 6% or possibly as much as 8%, depending on whether I buy it in Illinois or Wisconsin. If I buy online, many times I am subject to the sales tax in my area regardless. So, I don't think it matters. I'd be paying the sales tax on a new tool also; more in dollars because the price is higher. Actually, I would never buy a reconditioned tool for 10% off. There is not enough difference to make it worth the fact the warranty drops to 1 year and there is a "sales final" policy. Even the 20% tools are borderline and only depend on what they are. The only reconditioned tools I bought at 20% off were tools I would not necessarily use heavily (or at least thought I wouldn't). Everything else I've bought new.

I agree with this.  I pay 6% tax in Michigan.  When looking at the Recon stuff (which I have bought), minimum discount for me is 20%.  Also, I do compare to the cost of new, online, where I don't pay any tax.  Using a C15 set as an example... A 20% recon C15 Set after tax is $496.08, with a one year warranty.  A new drill bought online and shipped to me is $585.00.  I would rather spend the extra $89.00 for the piece of mind of knowing it was new and 2 additional years of warranty.  It really depends on the tool and discount for me.

 

[Throwback7r]

Don't forget that the new C15 drill has 4.2 AHr batts not the 3.0 that the recon sale has. That is the hardest thing for me.. selling 15 volt drills with the old 3.0 batts for 10-20% off when in fact they were just updated to the 4.2 Ahr is kinda silly for me.