Why are tool prices sooooo different around the world?

P

Paul Franklin

Member
Joined
Jan 22, 2007
Messages
157
Have you ever wondered why tool prices are so different around the world?
I am an Englishman living in the US, but I get emails from tol stores in the UK. I got one the other day and they were advertising the Dewalt DW745 jobsite table saw. Here it sells for around $369 but in the UK it was on sale for £475 (inc 17.5% VAT) Thats almost 3 times the cost here.
Why?
Also interestingly the new Porter Cable baby belt sander is sold under the Dewalt name in the UK.

Paul
 
Wow, what a difference!!

Not to bash black&decker/portercable/dewalt, but I have the feeling that sometimes they take a B&D or a PC tool, paint it yellow and double the price.
 
Its like the Festool line, the prices are quite a bit more on the other side of the ocean...
 
different country,different economy,different prices.in Europe,when they change to euro,everything went up!it use to be great to go over there,and spend American dollars,now the euro is stronger than the dollar!
 
Here is my theory about what is going on (putting on my economist's hat)

1. Taxes are generally much higher in Europe and elsewhere.
2. There is far less competition in Europe compared to the U.S.--this is also exacerbated by the fact that price fixing is generally the norm in many European countries.  Buy a car in the Netherlands for example and you will pay the asking price no deals. 
3. So in general most manufacturers are able to get away with retail price maintenance which is an anathema in the US scene.  In fact there are a couple of US laws that specifically forbid this. Specifically The Sherman Act, enacted in 1890, prohibits all agreements and conspiracies in restraint of interstate trade and commerce. These forbidden restraints include such practices as price fixing, tying arrangements, market allocations, boycotts and bid rigging.

Thats my opinion and I will stick to it.
Vijay
 
I had a kidney removed to pay for mine ;) [/quote]

I think the Kapex will be worth two kidneys and a spleen then. Too bad you only have one left.  ;) ;D
 
Australian Dollar = US$1.02 and Euro 1.00 = $1.30 Australian

Domino DF 500 Set is  Aust $1499 RRP compared to US $900 catalogue price.
KS120 is Aust $1850 RRP compared to US $1375 catalogue price. And so on.

So why - greater transport distance from Europe, Goods and Services Tax of 10%, relatively higher Australian retail wages compared to US, smaller customer base, different consumer protection laws, different voltage etc., With strength of Aust dollar prices are reducing, eg T55 is 150 dollars less than than last November (when I bought mine!!).

There are alternatives to Festool (Metabo an Makita drills cost much less) but in some cases there is nothing to beat the performance and quality of a Festool even if the nearest Premium Dealer is 150kilometres away.

Ah, the 'Tyranny of Distance'!
 
In regard to point 3 by Vijay, if that were still true, why are all Festool prices in the U.S. the same. A few years ago the U.S. Supreme Court made a ruling that basically allowed the manufacturer enforced pricing that Festool uses.

To some extent, Festool will charge what the market will bear. The U.S. market is more price sensitive, but it is so large that Festool can accept lower unit prices in exchange for moving a lot more units.
 
Jim do US dealers discount on Festool Catalogue price?

For example, I can get the Domino 500 set for a discount price of Aust $1299.00
 
Stephen B said:
Jim do US dealers discount on Festool Catalogue price?

For example, I can get the Domino 500 set for a discount price of Aust $1299.00
Click to expand...

US Festool prices are fixed, dealers must sell for the listed price. It all comes down to service.
 
Bikeboy80 said:
Stephen B said:
Jim do US dealers discount on Festool Catalogue price?

For example, I can get the Domino 500 set for a discount price of Aust $1299.00
Click to expand...

US Festool prices are fixed, dealers must sell for the listed price. It all comes down to service.
Click to expand...

Prices are also supposed to be set in Australia.

I personally hate the "shop for advice, then shop for price" mentality that often goes with discounting ...
 
In Germany the MSRP is set and can only be discounted under certain rules and time windows. It also contains 19% VAT or sales tax. The german Anti dumping law is strict.
Festool's price policy seems I be global and has not been adapted to any particular market. Apple Inc. has a similar pricing policy.

I am surprised that you can get discounts in Australia.

Cheers
Luis
 
Guys. The first half of this thread dates back to 2007 - I think things have moved on a bit since then!

Not sure of the details, but if I remember rightly, Festool was hit with a big fine in the EU recently (price-fixing / price maintenance / anti-competition / call it what you will) and since then, at least here in the UK, we now see far more aggressive pricing from many dealers; turns out to be not good for everyone, sadly.
 
I noticed you guys seem to get better deals o kits then we do. But for some reason some of the prices are cheaper here then there. I noticed though that hoses are cheaper there then here.

Its crazy but I guess its working for them
 
You must log in or register to reply here.

Similar threads

B
One Saw To Rule Them All (and similar nonsense questions ;) )
2
Replies
23
Views
5K
Bernmc
B
D
Festool (UK) service for those a little naive
2 3
Replies
50
Views
13K
Phil Beckley
P
Back
Top