Woodscreamer Posted March 18, 2015 Report Share Posted March 18, 2015 With the dollar doing so well should we expect Festool prices to go down? I would imagine there is a lot of inventory in the US that will have to burn off before we see lower prices. What does everyone think? Is it possible to buy direct from Germany or Europe ? Quote Link to comment Share on other sites More sharing options...
Brendon_t Posted March 18, 2015 Report Share Posted March 18, 2015 Festool prices increased March first. Non commodity sundries almost never lower prices when a currency change is more advantageous to a supplier. They are quick to raise prices when things seeing the other way though. Quote Link to comment Share on other sites More sharing options...
Eric. Posted March 18, 2015 Report Share Posted March 18, 2015 The last time I saw prices go down on anything I was hallucinating. Tools are not commodities like gas...once they jack up the price, they're never coming back down...with the exception of sales or a discontinued line, etc. Quote Link to comment Share on other sites More sharing options...
Trip Posted March 19, 2015 Report Share Posted March 19, 2015 ==>with the exception of sales Never say never.... Got an email from Felder today touting, "Exchange rate supported prices & spring specials".... Promising, "Prices as low as never before"... With an attached color flyer... Basically an open-ended window to price-in the favorable exchange rates... However, the actual discount rate isn't specified... So who knows? Maybe on something they are trying to push -- wasn't there a discount reciently on the Kapex? Quote Link to comment Share on other sites More sharing options...
Woodenskye Posted March 19, 2015 Report Share Posted March 19, 2015 Increase was March 1 in Canada and will be April 1 in the USA. Wondering if it will be an April Fools joke about the increase and prices will remain the same, but doubt it. Quote Link to comment Share on other sites More sharing options...
Tom Cancelleri Posted March 19, 2015 Report Share Posted March 19, 2015 Increase was March 1 in Canada and will be April 1 in the USA. Wondering if it will be an April Fools joke about the increase and prices will remain the same, but doubt it. Wishful thinking.... If you remember, about 12 years ago a 3HP 50" Jet/Powermatic/Delta Unisaw cabinet saw was around 1400 bucks compared to the 2700ish today. Quote Link to comment Share on other sites More sharing options...
Cochese Posted March 19, 2015 Report Share Posted March 19, 2015 Exchange rates have nothing to do with it. Supply, demand, and what they can get away with. Quote Link to comment Share on other sites More sharing options...
Brendon_t Posted March 19, 2015 Report Share Posted March 19, 2015 Exchange rates have nothing to do with it. Supply, demand, and what they can get away with. exchange rates do play a roll but only advantage to the merchant. They will raise pricesto keep their margin spread which trains consumers to pay the new price. If rates become favorable again, consumers are already used to the price tag and the company margins widen. Quote Link to comment Share on other sites More sharing options...
johnbinva Posted March 19, 2015 Report Share Posted March 19, 2015 I thought the same thing. We'll have to see but they seem to keep the premium around the brand. Rebates are another tactic used by overseas suppliers during currency fluctuations. Japanese camera makers like Canon and Nikon have been running deals lately but they produce a lot more product than Festool. Quote Link to comment Share on other sites More sharing options...
Trip Posted March 19, 2015 Report Share Posted March 19, 2015 In terms of a general price roll-back, the comments are mostly spot-on. However, in a strong currency situation, the Sales unit can get a ‘promotions’ line increase (these tend to be reviewed quarterly) – but quite a good deal of that is based on how the company’s numbers are tracking to plan… If the planets align, these manifest as a previously unplanned promotion, rebates (already mentioned), free kit, etc... But again, it depends on how the regional consolidation numbers look... Quote Link to comment Share on other sites More sharing options...
chrisphr Posted March 19, 2015 Report Share Posted March 19, 2015 So say you're the business manager for Festool and you notice sales spike when you announce an increase in MAP pricing. What to do, what to do... Hmm, wait, I've got an idea! The only modest increase makes me to think this is a sales driving strategy than anything being driven on the cost side. Merchants were probably begging for a 2015 cost increase, commodity and exchange markets be damned. Just a guess. Not begrudging Festool, they are in this position as a result of their innovation, quality, and management discipline. They ain't big, but they are on an island of their own and I'll bet they sure are profitable. Great case study in business. 1 Quote Link to comment Share on other sites More sharing options...
Brendon_t Posted March 19, 2015 Report Share Posted March 19, 2015 Owning a niche market and setting prices at your whim is a dream come true for any CFO Quote Link to comment Share on other sites More sharing options...
Trip Posted March 19, 2015 Report Share Posted March 19, 2015 Been there, done that… Not quite a 'whim' --- more about maintaining a raaaaaather comfortable 98% GM... Life was good… Quote Link to comment Share on other sites More sharing options...
Dan S Posted March 19, 2015 Report Share Posted March 19, 2015 Owning a niche market and setting prices at you whim is a dream come true for any CFO This is exactly why I refuse to drink any green coolaid. I have no problem with making a decent profit, but when I think you are gauging me............ Quote Link to comment Share on other sites More sharing options...
Chuck Melton Posted March 19, 2015 Report Share Posted March 19, 2015 I've had things shipped from the UK Amazon site before, albeit smaller items. By the time you pay for shipping and converting from 240V, you won't have saved much. On the UK site, a TS 55 with the 55" track was about $495 US. Quote Link to comment Share on other sites More sharing options...
shaneymack Posted March 19, 2015 Report Share Posted March 19, 2015 This is exactly why I refuse to drink any green coolaid. I have no problem with making a decent profit, but when I think you are gauging me............ They are definitely "gouging" but damn the coolaid is good! Quote Link to comment Share on other sites More sharing options...
Dan S Posted March 20, 2015 Report Share Posted March 20, 2015 They are definitely "gouging" but damn the coolaid is good! Ugh, damn auto correct........ Quote Link to comment Share on other sites More sharing options...
Trip Posted March 20, 2015 Report Share Posted March 20, 2015 You need to step back and look at FT as a consolidation of entities – each of which is effected by currency fluctuation… One regional entity (say the North America Sales unit) may favorably benefit from a currency fluctuation, but that benefit may come at the expense of some other corporate consolidation entity (say a Manufacturing entity where the currency is weak)... It can be a bit complex (which is why larger entities typically have a Consolidation group reporting into Corp Finance).... Unless you know the structure of the consolidated entity, it's hard to really see what's going on... Of course, FT may actually lose-out vis-a-vis transfer agreements with regional distributers --- You’ll know if that’s the case when Peter over at Tool Nut buys a new Cayenne Turbo for xMas… Quote Link to comment Share on other sites More sharing options...
Woodscreamer Posted March 23, 2015 Author Report Share Posted March 23, 2015 I didn't mean to start a flame war over Festool. I apologize if I offended anyone. I'll take a look at Amazon UK and see if the price is attractive. Quote Link to comment Share on other sites More sharing options...
Brendon_t Posted March 23, 2015 Report Share Posted March 23, 2015 That wasn't nuttin. . We all Come to share our experiences and learn from others. Quote Link to comment Share on other sites More sharing options...
Trip Posted March 25, 2015 Report Share Posted March 25, 2015 FYI - just got a flyer anouncing a FT price increase scheduled for April... I guess that answers the question... Quote Link to comment Share on other sites More sharing options...
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