New Festool USA Catalogue is Now Available for download

I could not help but be a little put off with all the warnings from sellers like Rockler and Japan Woodworker about Festool's price increase starting Feb 1st; not from them, but Festool. Many people are pulling back on expenditures in light of the uncertain (or in some cases very certain) economic downturn. Unless Festool is anticipating demand remaining strong and selling as many units or more, I have to think this blanket increase at this time is puzzling. I also find it wrong from a PR point of view. I own some Festool products, but don't intend to procure more until one, I really need something and two, only if the pricing comes down. Maybe my reaction is too emotional based on what I am seeing on the news each night, but I am more inclined to buy from a manufacturer that is intuned to what my economic restraints are. If there are really that many people still able to pull the trigger on their products despite the price increase, then more power to Festool and I guess my hats off to those that still see the same value in their products.

I don't mean this as an attack against you Frank.:eek: I appreciate the update from you and I can still afford to buy their products, I am just upset with them increasing their prices, when all the companies I know are working to increase sales by offering more or reducing their pricing. I just believe them to be out of touch.
 
Bill, I am also surprised that Festool would increase their prices at this time. It does not seem to be a good PR move on their part.

I expect this action was put into motion before the downturn and that they have been slow to react to circumstances.

One thing to realize is that, although Festool prices in North America seem high, they are much less than the Festool prices elsewhere (including Germany). I expect that this latest price increase is part of a long term strategy by Festool to alleviate this difference.
 
One thing to realize is that, although Festool prices in North America seem high, they are much less than the Festool prices elsewhere (including Germany). I expect that this latest price increase is part of a long term strategy by Festool to alleviate this difference.

I did not realize that Frank.

I believe that this February 1st increase represents setting their pricing for the coming year which they will hold to. I believe that Lee Valley does the same thing; have a single year price increase that represents their pricing for the coming year. Good or bad they hold to their price commitments for a year and then re-evaluate for the next year. Not sure what the advantages are doing it that way. It seems like other vendor's pricing varies more, depending on market conditions. I know that Festool protects their pricing. Does not matter where in the USA you buy, it is the same price. There are no discounts.
 
Lee Valley does not always do the same thing. At the start of the calendar year 2009, the prices for many non-Canadain sourced items in their existing catalogues were increased for Canadain customers. This was due to the rapid fall of the Canadain $ against the US $ in the last three months of 2008.
 
I don't know what to think: tool companies are in big trouble. Black and Decker, which bought up so many others it was starting to look like a real life game of pacman, is laying off people right and left, it's stock price has been in free fall, and profits and projections are way, way down:

http://www.forbes.com/feeds/ap/2009/01/29/ap5984115.html

What would you do? Raise prices and hope? That wouldn't work. Cut prices and hope people will buy? You'll lose that way too...

I have some sympathy for anyone trying to make those decisions. But in any case, I for one am not going to be buying no matter what they decide....

Thanks,

Bill
 
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