View Single Post
  #18   Report Post  
Posted to rec.woodworking
Bill[_91_] Bill[_91_] is offline
external usenet poster
 
Posts: 172
Default Say Good Bye to the Hitachi Name

wrote:
On Thursday, March 15, 2018 at 10:39:37 PM UTC-5, Bill wrote:
wrote:

Just imagine if GM or Ford or Fiat told every car dealer selling their brand that they will only sell the cars/trucks for the price on the sticker. No dickering, no bargaining with customers. If you do then your car dealer lot will be closed before the sun sets and every car will be taken back and you will be sued in court. I'm guessing this is illegal in the USA for cars. But somehow its allowed for tools.


If they were the only tool supplier, I believe things would be
different. Festool does not have a monopoly (except on Festool tools),
as there are plenty of suitably-equivalent tools.


Not sure what you mean. Ford, GM, Fiat all make cars/trucks that compete with each other. Add in Honda, Nissan, Toyota, Subaru, Hundai, Kia from Asia. And add in BMW, Volkswagen, Mercedes, Audi, Volvo from Europe. No car dealer has a monopoly. But you can and do negotiate an individual price from every car dealer for every brand. DeWalt, Makita, Milwaukee, Porter Cable all have different prices for every tool from all the different vendors selling these brands. Only Festool has one price no matter who sells it. It is the oddball out here.

After rereading your post I think I might grasp what you are saying. Maybe. But how can Festool control its retailers and no other company or product in the USA can exercise the same control? If Festool owned, controlled everyone who sells its products, then yes they can dictate prices. But all of the vendors for Festool are privately owned businesses.


Yes, but evidently, if you wish to be a Festool dealer you have to
follow Festool's rules. I am not a lawyer, so I don't know anything
about the legality of fixing a uniform price. Below you say that
Festool now owns SawStop. I didn't realize that. It makes perfect sense
though to me, based upon the price-point of the products. Marketing will
be easier--"economies of scale", and all that...

Bill


They are not Festool owned sellers, distributors. All of these
companies sell Festool and a thousand other items. And I'm sure they
compete on price with everyone else on all these other items. I guess
SawStop is similar to Festool. I think, not positive, that SawStop also
dictates a price for every saw they sell and that is the price. No
competition for SawStop on price. Odd that Festool now owns SawStop.