Rr

RicodJour

09/07/2007 2:04 PM

Unfair business practices

The local super-duper hardware store, the one with the pass-through
door to the lumber yard next door, has crossed the line. I am often
disturbed by business practices that are on the sketchy side of the
line. Placing candy at kids' eye level is bad enough, but when they
place a large assortment of Festool toys right by the cash register in
a hardware store...well, that's just wrong.

People have mortgages and families and they should know better than to
tempt people that way. On the other hand Festool makes stuff that
feels good in the hand and is just pretty! Am I worth it...? Hmmmm.

Anyone looking for a second-hand mortgage and family with hardly any
miles on them? ;)

R


This topic has 34 replies

mm

in reply to RicodJour on 09/07/2007 2:04 PM

09/07/2007 11:09 PM

Mike,

> According to an Ebay store the new Festool products MUST be sold at the
> suggested retail price, no matter the outlet. Gee, isn't that illegal, as
> in price fixing?
>

No actually your United States Supreme Court has JUST ruled that
this type of pricing is not illegal. Usually the manufacturer tells
the
retail outleft that if they want to sell the product, they have
to maintain the price.

re: http://www.forbes.com/business/2007/06/28/retail-pricing-walmart-biz-cx_bw_ls_0628scotus.html

Only way to get any discount, is 1) avoiding sales tax - internet,
mail catalog
2) discounts that the store might apply to a total purchase - "Today
if
you spend $40, you will save an additional $5!!". That's how I bought
my Tormek sharpening system at Woodcraft - on my "birthday discount"
card that I get once a year.

I've got a major b-day coming up and I'd like to get one of those
new Festool screw guns. We will see.

MJ Wallace

nn

in reply to RicodJour on 09/07/2007 2:04 PM

09/07/2007 5:40 PM

On Jul 9, 6:09 pm, "[email protected]" <[email protected]>
wrote:

>That's how I bought my Tormek sharpening system at >Woodcraft - on my "birthday discount" card that I get >once a year.

Aren't you the lucky guy. The franchisee here will only give you a
discount on non-electrical tools, and he reserves the right to hold
back ANY tool he wants.

He does it, too.

Robert

Rd

Robatoy

in reply to RicodJour on 09/07/2007 2:04 PM

10/07/2007 6:14 AM

On Jul 9, 6:34 pm, "Mike Dobony" <[email protected]> wrote:

>
> According to an Ebay store the new Festool products MUST be sold at the
> suggested retail price, no matter the outlet. Gee, isn't that illegal, as
> in price fixing?
>
There is always the Black & Decker 'method', like a $200.00 belt
sander, on sale all day at $ 89.00......but worth less that $ 20.00.

For Festool to keep doing what they're doing, they need to do what
they do.
Apple does it. BMW does it. Quality costs money, and so does the
integrity of their sales network.

I, for one, am glad to see the North American market finally 'getting
it'. The European model works. Give the people what they came for....
and not some let's-see-what-the-hell-we-can-get-away-with marketing
scheme.

My granma said it best: "I am too poor to buy cheap stuff."

mm

in reply to RicodJour on 09/07/2007 2:04 PM

10/07/2007 9:30 PM

Robert,

> Aren't you the lucky guy. The franchisee here will only give you a
> discount on non-electrical tools, and he reserves the right to hold
> back ANY tool he wants.
>

Well, I think I got it during my birthday month. I could be wrong but
there was a discount offering for all things (except Festool!) during
which I got my Tormek. I would think that Woodcraft would
have standardized the discount offerings across franchises. We
only have two in our area of over 100 mile radius.

Perhaps you could talk to him and find out why he does this?
Letting him know, you could be ordering via the Internet and
cutting him out directly the next time you buy?

MJ Wallace

Rd

Robatoy

in reply to RicodJour on 09/07/2007 2:04 PM

10/07/2007 7:43 PM

On Jul 10, 8:31 pm, "Greg O" <[email protected]> wrote:

[snipped]

> No one has any possibility of
> knocking M$ of their mountain!

Arrogance/complacency has knocked a lot of corporations on their
asses.
Empires have suffered the same fate.

Microsoft is not invincible.

Mb

MB

in reply to RicodJour on 09/07/2007 2:04 PM

10/07/2007 9:10 PM


>
> Remember somebody call DEC? :)
>

I worked on Vax/VMS and PDP/RSX. I talked to a friend of mine last
week who is still working on a large VMS system used to control a
pharma plant. It was a bullet proof OS.

Dv

DLB

in reply to RicodJour on 09/07/2007 2:04 PM

11/07/2007 6:23 AM

On Jul 10, 10:12 pm, Digger <[email protected]> wrote:
> On Tue, 10 Jul 2007 06:14:20 -0700, Robatoy <[email protected]>
> wrote:
>
>
>
>
>
> >On Jul 9, 6:34 pm, "Mike Dobony" <[email protected]> wrote:
>
> >> According to an Ebay store the new Festool products MUST be sold at the
> >> suggested retail price, no matter the outlet. Gee, isn't that illegal, as
> >> in price fixing?
>
> >There is always the Black & Decker 'method', like a $200.00 belt
> >sander, on sale all day at $ 89.00......but worth less that $ 20.00.
>
> >For Festool to keep doing what they're doing, they need to do what
> >they do.
> >Apple does it. BMW does it. Quality costs money, and so does the
> >integrity of their sales network.
>
> >I, for one, am glad to see the North American market finally 'getting
> >it'. The European model works. Give the people what they came for....
> >and not some let's-see-what-the-hell-we-can-get-away-with marketing
> >scheme.
>
> >My granma said it best: "I am too poor to buy cheap stuff."
>
> It's sad that at one time B&D was the best until it was sold along
> with Dewalt etc, etc to a Canadian (I think) conglomerate and then it
> all became marketing crap for the most dollars. My choice of handtools
> now is Milwaukee. Heavier than I would like but lasts forever and I
> have been a major consumer of electric handtools.
>
>
>
> - Hide quoted text -
>
> - Show quoted text -- Hide quoted text -
>
> - Show quoted text -

B&D wasn't sold. It is based in Towson, MD and is publicly traded
stock.

You are right about the quality decline. I have a B&D circular saw,
jig saw and corded drill from the 70's and they are still going
strong. They are all B&D trade line that became rebranded as the
Dewalt line. I wouldn't buy any tool with B&D on it today. No
complaints with Dewalt.

Dave

Rd

Robatoy

in reply to RicodJour on 09/07/2007 2:04 PM

11/07/2007 8:20 AM

On Jul 11, 7:38 am, "Rick M"
<[email protected]> wrote:
> "Robatoy" wrote
>
> > Arrogance/complacency has knocked a lot of corporations on their asses.
> > Empires have suffered the same fate.
>
> > Microsoft is not invincible.
>
> Rob, you aren't alone in thinking along those lines. Robert Cringely wrote
> on June 29th about the same thing (link below) titled "An AIR of
> Invisibility: Adobe has Microsoft in its sights"
>
> http://www.pbs.org/cringely/pulpit/2007/pulpit_20070629_002360.html

An excellent read. Thanks for the link.

>
> On another note ... how's your Sis doing?

She's had some problems. Another operation on her neck. A pacemaker.
Physio twice daily. The house has been totally converted for her needs
and has a lift on a van now, but can't drive it yet.
She manages to stand and has some feed-back from her feet, but no
motor (small or large) on her legs. She's painting and has become
quite proficient at feeding herself and chatting with friends on her
computer. She's mostly in good spirits but her mobility hasn't really
improved from a year ago.

My mother, on the other hand, was wrongly diagnosed with Alzheimer's.
Turns out she had a nasty nervous break-down after my sister's fall.
She's shaken all that off her, after 10 months..and is now happy as a
clam in a super-cool retirement home. She remembers very little of the
last 8-10 months but is as sharp as a tack.. just like new. We're all
amazed and very grateful.
My dad had to go to a home a few weeks ago. He has dementia and has
been falling down.

Soooo, with all that, and the new land-lady of my new shop making
unreasonable demands (triple sound insulation...putting sub-floors in
so glue won't spill on her floor, tractor trailers for me have to use
another drive-way where their forklift can't go because it doesn't
have yard tires.. just one demand after another.. I said to hell with
this, I'll build something instead. So, I'm getting 2 houses ready for
sale and shop for some land in the spring.

Oh... and I need a frickin' vacation.

<EG> thanks for asking...lol.


r

Ff

FoggyTown

in reply to RicodJour on 09/07/2007 2:04 PM

11/07/2007 11:49 AM

On Jul 10, 2:14?pm, Robatoy <[email protected]> wrote:
> On Jul 9, 6:34 pm, "Mike Dobony" <[email protected]> wrote:
>
>
>
> > According to an Ebay store the new Festool products MUST be sold at the
> > suggested retail price, no matter the outlet. Gee, isn't that illegal, as
> > in price fixing?
>
> There is always the Black & Decker 'method', like a $200.00 belt
> sander, on sale all day at $ 89.00......but worth less that $ 20.00.
>
> For Festool to keep doing what they're doing, they need to do what
> they do.
> Apple does it. BMW does it. Quality costs money, and so does the
> integrity of their sales network.
>
> I, for one, am glad to see the North American market finally 'getting
> it'. The European model works. Give the people what they came for....
> and not some let's-see-what-the-hell-we-can-get-away-with marketing
> scheme.
>
> My granma said it best: "I am too poor to buy cheap stuff."

But why should a manufacturer be allowed to influence what profit
margin a retailer wants to maintain on an item? (Hypothetical numbers
used.) If Festool sells a borg an item wholesale for $100 and the RRP
is, say, $149 that's a 49% markup. But if the borg is happy with a
20% markup and wants to sell it for $120 that's nobody's business
besides the borg's. That's what capitalist competition is all about.
That's (one reason, anyway) why Sam Walton died a grillionaire.

Something is fishy here.

FoggyTown

mm

in reply to RicodJour on 09/07/2007 2:04 PM

11/07/2007 11:06 PM

George,

>The manufacturer is attempting to keep his retailers in business by keeping
> them from cutting each others' throats with discounts. He usually gives
> rebates or price breaks to those who sell the most, unfortunately, which
> puts the little guy at a big disadvantage if the big guy passes his savings
> on to the consumer. Always looked with envy on those who didn't have to

I agree. I think what Festool and others (Tormek, I think) are also
doing
is avoid having to have only the largest, most successful (in terms of
pushing units) stores be the only places to buy their products. While
we
might not like having to buy at full retail, often is the refrain
heard
from this group is that you should buy the best you can afford. With
that, where is it written that we always deserve a price break?

I make sure I buy a book from my local bookseller now and then even
tho I know I can get it from Amazon. I want them to continue to
be around. They provide excellant service and carry other things
I like to buy than just books.

Same with woodworking. Saves me time to have a woodworking
store like Woodcraft to buy a variety of items than having to
chase around town. Sure I'd like to get some deal going, who doesn't.
But the case here, is (and as was ruled by SCOTUS) this retail
pricing isn't illegal.


MJ Wallace

Rd

Robatoy

in reply to RicodJour on 09/07/2007 2:04 PM

11/07/2007 4:58 PM

On Jul 11, 2:49 pm, FoggyTown <[email protected]> wrote:
> On Jul 10, 2:14?pm, Robatoy <[email protected]> wrote:
>
>
>
> > On Jul 9, 6:34 pm, "Mike Dobony" <[email protected]> wrote:
>
> > > According to an Ebay store the new Festool products MUST be sold at the
> > > suggested retail price, no matter the outlet. Gee, isn't that illegal, as
> > > in price fixing?
>
> > There is always the Black & Decker 'method', like a $200.00 belt
> > sander, on sale all day at $ 89.00......but worth less that $ 20.00.
>
> > For Festool to keep doing what they're doing, they need to do what
> > they do.
> > Apple does it. BMW does it. Quality costs money, and so does the
> > integrity of their sales network.
>
> > I, for one, am glad to see the North American market finally 'getting
> > it'. The European model works. Give the people what they came for....
> > and not some let's-see-what-the-hell-we-can-get-away-with marketing
> > scheme.
>
> > My granma said it best: "I am too poor to buy cheap stuff."
>
> But why should a manufacturer be allowed to influence what profit
> margin a retailer wants to maintain on an item? (Hypothetical numbers
> used.) If Festool sells a borg an item wholesale for $100 and the RRP
> is, say, $149 that's a 49% markup. But if the borg is happy with a
> 20% markup and wants to sell it for $120 that's nobody's business
> besides the borg's. That's what capitalist competition is all about.
> That's (one reason, anyway) why Sam Walton died a grillionaire.
>
....then the next guy wants to steal the deal at 115...another at
110...then the next guys says...who cares??? Can't make any money this
way...and drops all interest in supporting the line.

Next?

Nobody carries it.

You HAVE to allow people to make a buck. Milking them dry is NOT a
solution!!!!
Do YOU want to work for nothing???

GO

"Greg O"

in reply to RicodJour on 09/07/2007 2:04 PM

09/07/2007 6:31 PM


"Dave in Houston" <[email protected]> wrote in message
news:[email protected]...

>
>
> Microsoft has been getting away with it forever.
> --

Not true! Microsoft welcomes anyone to come up with an operating system and
market it. Go ahead, here is your chance to become a billionaire! Gates is
one hell of a marketing man, more of a salesman that a computer geek. You
don't need to use Microsoft products!
Greg

GO

"Greg O"

in reply to RicodJour on 09/07/2007 2:04 PM

10/07/2007 7:31 PM

"Maxwell Lol" <[email protected]> wrote in message
news:[email protected]...
> "Greg O" <[email protected]> writes:
>
>> > Microsoft has been getting away with it forever.
>> > --
>>
>> Not true! Microsoft welcomes anyone to come up with an operating
>> system and market it.
>
> Are you SERIOUS????
>
> They purposely make sure that Caldera/DR-DOS 6 could not be used with
> their software. If you didn't have Windows 3.1, MS Word would not work.
>
> Be (BeOS) failed when they tried to give away the OS for free because of
> threats by Microsoft against PC vendors who considered it.
>
> There was netscape, Opera, and the browser wars. Sun's java versus
> MS's. The MS "extensions" to Kerberos. WordPerfect, Media players,
> firewalls, java vs. C#, Microsoft vs. Japan, Microsoft vs. Europe, and
> the Open Office XML. The battle goes on.
>
> And there is a class action lawsuit for people who were forced to pay
> for Windows when they had no intention of buying/using it.
>
> Only recently could you get a discount by buying a Dell with Linux.
>
> Remember, the DOJ CONVICTED them of illegal practices.
>
> They've been good recently, because of their conviction, but then they
> bring up the Linux patents.
>
>

Microsoft is a monster I will agree. They have gotten so large, and so
common place that we are pretty much stuck with them.
As far as threatening computer manufacturers about using a different OS. I
am sure they could, but them Microsoft just would not sell Windows to them.
Nothing illegal about that! Crappy, but not illegal. I am not saying
Microsoft is a saint, but not all they do is illegal. They have a
stranglehold on the OS market, and know it. No one has any possibility of
knocking M$ of their mountain!

Hh

"HeyBub"

in reply to RicodJour on 09/07/2007 2:04 PM

11/07/2007 9:50 AM

Digger wrote:
>
> And now that Little Bill wants to import more of his geeks from India
> under an expanded H1b visa program I REALLY hope that MORE people move
> away from Microsh*t.

He can't import more. That's why Micros~1 is opening a branch in Vancouver;
the Canadian government is more accomodating.

Hh

"HeyBub"

in reply to RicodJour on 09/07/2007 2:04 PM

11/07/2007 5:41 PM

FoggyTown wrote:
>
> But why should a manufacturer be allowed to influence what profit
> margin a retailer wants to maintain on an item? (Hypothetical numbers
> used.) If Festool sells a borg an item wholesale for $100 and the RRP
> is, say, $149 that's a 49% markup. But if the borg is happy with a
> 20% markup and wants to sell it for $120 that's nobody's business
> besides the borg's. That's what capitalist competition is all about.
> That's (one reason, anyway) why Sam Walton died a grillionaire.
>
> Something is fishy here.
>

Using your example, the manufacturer may very well say, "Hmm, Borg is
satisfied with a 20% markup, so lets sell the item to Borg for $125. They
can then mark it up to $149 and everybody's on the same page."

Dd

Digger

in reply to RicodJour on 09/07/2007 2:04 PM

10/07/2007 9:49 PM

On Mon, 9 Jul 2007 18:31:54 -0500, "Greg O" <[email protected]>
wrote:

>
>"Dave in Houston" <[email protected]> wrote in message
>news:[email protected]...
>
>>
>>
>> Microsoft has been getting away with it forever.
>> --
>
>Not true! Microsoft welcomes anyone to come up with an operating system and
>market it. Go ahead, here is your chance to become a billionaire! Gates is
>one hell of a marketing man, more of a salesman that a computer geek. You
>don't need to use Microsoft products!
>Greg

And now that Little Bill wants to import more of his geeks from India
under an expanded H1b visa program I REALLY hope that MORE people move
away from Microsh*t.

MD

"Mike Dobony"

in reply to RicodJour on 09/07/2007 2:04 PM

11/07/2007 2:29 AM


"Dave in Houston" <[email protected]> wrote in message
news:[email protected]...
>
> "Mike Dobony" <[email protected]> wrote in message
> news:[email protected]...
>> According to an Ebay store the new Festool products MUST be sold at the
>> suggested retail price, no matter the outlet. Gee, isn't that illegal,
>> as in price fixing?
>>
>> Mike D.
>
>
> Microsoft has been getting away with it forever.

I see it on sale lots of times. I also see a great variety of prices for
their products.

Di

"Dave in Houston"

in reply to RicodJour on 09/07/2007 2:04 PM

09/07/2007 5:55 PM


"Mike Dobony" <[email protected]> wrote in message
news:[email protected]...
> According to an Ebay store the new Festool products MUST be sold at the
> suggested retail price, no matter the outlet. Gee, isn't that illegal, as
> in price fixing?
>
> Mike D.


Microsoft has been getting away with it forever.
--
NuWave Dave in Houston

Jj

JeffB

in reply to RicodJour on 09/07/2007 2:04 PM

09/07/2007 8:52 PM

It was illegal price fixing, since around 1911, until just recently (in
the last couple weeks) when the US Supreme Court struck down those
restrictions. Now the manufacturers can set a minimum selling price just
like the minimum advertised prices that had been common practice.
--
JeffB
remove no.spam. to email


Mike Dobony wrote:
> "RicodJour" <[email protected]> wrote in message
> news:[email protected]...
>> The local super-duper hardware store, the one with the pass-through
>> door to the lumber yard next door, has crossed the line. I am often
>> disturbed by business practices that are on the sketchy side of the
>> line. Placing candy at kids' eye level is bad enough, but when they
>> place a large assortment of Festool toys right by the cash register in
>> a hardware store...well, that's just wrong.
>>
>> People have mortgages and families and they should know better than to
>> tempt people that way. On the other hand Festool makes stuff that
>> feels good in the hand and is just pretty! Am I worth it...? Hmmmm.
>>
>> Anyone looking for a second-hand mortgage and family with hardly any
>> miles on them? ;)
>>
>> R
>>
>
> According to an Ebay store the new Festool products MUST be sold at the
> suggested retail price, no matter the outlet. Gee, isn't that illegal, as
> in price fixing?
>
> Mike D.
>
>

RM

"Rick M"

in reply to RicodJour on 09/07/2007 2:04 PM

11/07/2007 7:38 AM


"Robatoy" wrote

> Arrogance/complacency has knocked a lot of corporations on their asses.
> Empires have suffered the same fate.
>
> Microsoft is not invincible.
>

Rob, you aren't alone in thinking along those lines. Robert Cringely wrote
on June 29th about the same thing (link below) titled "An AIR of
Invisibility: Adobe has Microsoft in its sights"

http://www.pbs.org/cringely/pulpit/2007/pulpit_20070629_002360.html



On another note ... how's your Sis doing?

Regards,

Rick





ML

Maxwell Lol

in reply to RicodJour on 09/07/2007 2:04 PM

09/07/2007 10:42 PM

"Greg O" <[email protected]> writes:

> > Microsoft has been getting away with it forever.
> > --
>
> Not true! Microsoft welcomes anyone to come up with an operating
> system and market it.

Are you SERIOUS????

They purposely make sure that Caldera/DR-DOS 6 could not be used with
their software. If you didn't have Windows 3.1, MS Word would not work.

Be (BeOS) failed when they tried to give away the OS for free because of
threats by Microsoft against PC vendors who considered it.

There was netscape, Opera, and the browser wars. Sun's java versus
MS's. The MS "extensions" to Kerberos. WordPerfect, Media players,
firewalls, java vs. C#, Microsoft vs. Japan, Microsoft vs. Europe, and
the Open Office XML. The battle goes on.

And there is a class action lawsuit for people who were forced to pay
for Windows when they had no intention of buying/using it.

Only recently could you get a discount by buying a Dell with Linux.

Remember, the DOJ CONVICTED them of illegal practices.

They've been good recently, because of their conviction, but then they
bring up the Linux patents.

LH

Lew Hodgett

in reply to RicodJour on 09/07/2007 2:04 PM

11/07/2007 7:50 PM

FoggyTown wrote:

> If Festool sells a borg an item wholesale for $100 and the RRP
> is, say, $149 that's a 49% markup.

That is exactly what they DO NOT do.

See earlier post RE: AGENCY.

Lew

BA

B A R R Y

in reply to RicodJour on 09/07/2007 2:04 PM

10/07/2007 7:16 AM

RicodJour wrote:
> Placing candy at kids' eye level is bad enough, but when they
> place a large assortment of Festool toys right by the cash register in
> a hardware store...well, that's just wrong.

Those Bastards!

LH

Lew Hodgett

in reply to RicodJour on 09/07/2007 2:04 PM

11/07/2007 12:54 AM

Greg O wrote:

> Microsoft is a monster I will agree. They have gotten so large, and so
> common place that we are pretty much stuck with them.

There was a time when General Motors had almost 60% of the US
market(Late 50s-Early 60s).

Their arrogance and 50 years seemed to have had an impact on those stats.

Lew

MD

"Mike Dobony"

in reply to RicodJour on 09/07/2007 2:04 PM

11/07/2007 2:36 AM


"Robatoy" <[email protected]> wrote in message
news:[email protected]...
> On Jul 9, 6:34 pm, "Mike Dobony" <[email protected]> wrote:
>
>>
>> According to an Ebay store the new Festool products MUST be sold at the
>> suggested retail price, no matter the outlet. Gee, isn't that illegal,
>> as
>> in price fixing?
>>
> There is always the Black & Decker 'method', like a $200.00 belt
> sander, on sale all day at $ 89.00......but worth less that $ 20.00.
>
> For Festool to keep doing what they're doing, they need to do what
> they do.
> Apple does it. BMW does it. Quality costs money, and so does the
> integrity of their sales network.
>
> I, for one, am glad to see the North American market finally 'getting
> it'. The European model works. Give the people what they came for....
> and not some let's-see-what-the-hell-we-can-get-away-with marketing
> scheme.
>

??????????????? You mean the OLD North American model that once made
America great. B&D is only good for minutes. Never had any good B&D
products and neither did my dad. I was always driving into the city to buy
parts to fix that stupid drill.

> My granma said it best: "I am too poor to buy cheap stuff."
>
>

MD

"Mike Dobony"

in reply to RicodJour on 09/07/2007 2:04 PM

09/07/2007 10:34 PM


"RicodJour" <[email protected]> wrote in message
news:[email protected]...
> The local super-duper hardware store, the one with the pass-through
> door to the lumber yard next door, has crossed the line. I am often
> disturbed by business practices that are on the sketchy side of the
> line. Placing candy at kids' eye level is bad enough, but when they
> place a large assortment of Festool toys right by the cash register in
> a hardware store...well, that's just wrong.
>
> People have mortgages and families and they should know better than to
> tempt people that way. On the other hand Festool makes stuff that
> feels good in the hand and is just pretty! Am I worth it...? Hmmmm.
>
> Anyone looking for a second-hand mortgage and family with hardly any
> miles on them? ;)
>
> R
>

According to an Ebay store the new Festool products MUST be sold at the
suggested retail price, no matter the outlet. Gee, isn't that illegal, as
in price fixing?

Mike D.

MD

"Mike Dobony"

in reply to RicodJour on 09/07/2007 2:04 PM

11/07/2007 2:31 AM


"JeffB" <[email protected]> wrote in message
news:[email protected]...
> It was illegal price fixing, since around 1911, until just recently (in
> the last couple weeks) when the US Supreme Court struck down those
> restrictions. Now the manufacturers can set a minimum selling price just
> like the minimum advertised prices that had been common practice.
> --
> JeffB
> remove no.spam. to email
>

Junst one more reason to impeach these anti-Constitution jerks.

>
> Mike Dobony wrote:
>> "RicodJour" <[email protected]> wrote in message
>> news:[email protected]...
>>> The local super-duper hardware store, the one with the pass-through
>>> door to the lumber yard next door, has crossed the line. I am often
>>> disturbed by business practices that are on the sketchy side of the
>>> line. Placing candy at kids' eye level is bad enough, but when they
>>> place a large assortment of Festool toys right by the cash register in
>>> a hardware store...well, that's just wrong.
>>>
>>> People have mortgages and families and they should know better than to
>>> tempt people that way. On the other hand Festool makes stuff that
>>> feels good in the hand and is just pretty! Am I worth it...? Hmmmm.
>>>
>>> Anyone looking for a second-hand mortgage and family with hardly any
>>> miles on them? ;)
>>>
>>> R
>>>
>>
>> According to an Ebay store the new Festool products MUST be sold at the
>> suggested retail price, no matter the outlet. Gee, isn't that illegal,
>> as in price fixing?
>>
>> Mike D.

GS

George Shouse

in reply to RicodJour on 09/07/2007 2:04 PM

18/07/2007 9:25 PM

On Tue, 10 Jul 2007 21:10:58 -0700, MB <[email protected]>
wrote:

>
>>
>> Remember somebody call DEC? :)
>>
>
>I worked on Vax/VMS and PDP/RSX. I talked to a friend of mine last
>week who is still working on a large VMS system used to control a
>pharma plant. It was a bullet proof OS.
>

Used to write VMS device drivers and up. Haven't for about 7
years. But, it still is a bullet proof OS and you can still buy
it today. It was a sad day in May this year when the plug was
pulled on the Alpha servers.

dn

dpb

in reply to RicodJour on 09/07/2007 2:04 PM

10/07/2007 7:44 PM

Greg O wrote:
...
> ...No one has any possibility
> of knocking M$ of their mountain!

Remember somebody call DEC? :)

--

dn

dpb

in reply to RicodJour on 09/07/2007 2:04 PM

11/07/2007 8:31 AM

Digger wrote:
...

> It's sad that at one time B&D was the best until it was sold along
> with Dewalt etc, etc to a Canadian (I think) conglomerate ...

Au contraire...

www.blackanddecker.com

2004 - Black & Decker ® announce the purchase of the Tools Group from
Pentair, Inc. (NYSE: PNR) for approximately $775 million in cash. The
Tools Group, which includes the Porter-Cable, Delta, DeVilbiss Air
Power, Oldham Saw, and FLEX businesses, had sales of $1.08 billion and
operating profit of $82 million in 2003.

--

Dd

Digger

in reply to RicodJour on 09/07/2007 2:04 PM

10/07/2007 10:12 PM

On Tue, 10 Jul 2007 06:14:20 -0700, Robatoy <[email protected]>
wrote:

>On Jul 9, 6:34 pm, "Mike Dobony" <[email protected]> wrote:
>
>>
>> According to an Ebay store the new Festool products MUST be sold at the
>> suggested retail price, no matter the outlet. Gee, isn't that illegal, as
>> in price fixing?
>>
>There is always the Black & Decker 'method', like a $200.00 belt
>sander, on sale all day at $ 89.00......but worth less that $ 20.00.
>
>For Festool to keep doing what they're doing, they need to do what
>they do.
>Apple does it. BMW does it. Quality costs money, and so does the
>integrity of their sales network.
>
>I, for one, am glad to see the North American market finally 'getting
>it'. The European model works. Give the people what they came for....
>and not some let's-see-what-the-hell-we-can-get-away-with marketing
>scheme.
>
>My granma said it best: "I am too poor to buy cheap stuff."

It's sad that at one time B&D was the best until it was sold along
with Dewalt etc, etc to a Canadian (I think) conglomerate and then it
all became marketing crap for the most dollars. My choice of handtools
now is Milwaukee. Heavier than I would like but lasts forever and I
have been a major consumer of electric handtools.
>

Gg

"George"

in reply to RicodJour on 09/07/2007 2:04 PM

11/07/2007 10:04 PM


"FoggyTown" <[email protected]> wrote in message
news:[email protected]...
> But why should a manufacturer be allowed to influence what profit
> margin a retailer wants to maintain on an item? (Hypothetical numbers
> used.) If Festool sells a borg an item wholesale for $100 and the RRP
> is, say, $149 that's a 49% markup. But if the borg is happy with a
> 20% markup and wants to sell it for $120 that's nobody's business
> besides the borg's. That's what capitalist competition is all about.
> That's (one reason, anyway) why Sam Walton died a grillionaire.
>
> Something is fishy here.

You've not had retail experience, I see. That's a 33% markup in retail
parlance. Markup as percentage of selling price.

The manufacturer is attempting to keep his retailers in business by keeping
them from cutting each others' throats with discounts. He usually gives
rebates or price breaks to those who sell the most, unfortunately, which
puts the little guy at a big disadvantage if the big guy passes his savings
on to the consumer. Always looked with envy on those who didn't have to
make cash flow decisions to make minimum purchase amounts to please a single
customer. Sometimes I had to say I couldn't even order what he wanted, even
though that was a half-truth.

MD

"Mike Dobony"

in reply to RicodJour on 09/07/2007 2:04 PM

11/07/2007 2:34 AM


"Digger" <[email protected]> wrote in message
news:[email protected]...
> On Tue, 10 Jul 2007 06:14:20 -0700, Robatoy <[email protected]>
> wrote:
>
>>On Jul 9, 6:34 pm, "Mike Dobony" <[email protected]> wrote:
>>
>>>
>>> According to an Ebay store the new Festool products MUST be sold at the
>>> suggested retail price, no matter the outlet. Gee, isn't that illegal,
>>> as
>>> in price fixing?
>>>
>>There is always the Black & Decker 'method', like a $200.00 belt
>>sander, on sale all day at $ 89.00......but worth less that $ 20.00.
>>
>>For Festool to keep doing what they're doing, they need to do what
>>they do.
>>Apple does it. BMW does it. Quality costs money, and so does the
>>integrity of their sales network.
>>
>>I, for one, am glad to see the North American market finally 'getting
>>it'. The European model works. Give the people what they came for....
>>and not some let's-see-what-the-hell-we-can-get-away-with marketing
>>scheme.
>>
>>My granma said it best: "I am too poor to buy cheap stuff."
>
> It's sad that at one time B&D was the best until it was sold along
> with Dewalt etc, etc to a Canadian (I think) conglomerate and then it
> all became marketing crap for the most dollars. My choice of handtools
> now is Milwaukee. Heavier than I would like but lasts forever and I
> have been a major consumer of electric handtools.
>>
>

I wanted a Milwaukee drywall gun, but Lowes discontinued carrying them and
took on some cheap junk that was already worn out brand new on the shelf!
I didn't have time to run around and take off work to get the good stuff.

LH

Lew Hodgett

in reply to RicodJour on 09/07/2007 2:04 PM

09/07/2007 11:19 PM

Mike Dobony wrote:

> According to an Ebay store the new Festool products MUST be sold at
the
> suggested retail price, no matter the outlet. Gee, isn't that
illegal, as
> in price fixing?

Not necessarily.

It is my understanding that retail outlets displaying Festool products
are actually "AGENTS" of Festool.

AS an example, my local hardware store has a display of Festool, but
no inventory.

Orders are placed via phone to Festool in Nevada and shipped same day
to here in SoCal(Yes, you pay CA sales tax)

IOW, the right of ownership transfers directly from Festool to the end
purchaser and the retailer is then paid a commission.

Since Festool is the seller, they can set whatever price they like.

It is an old marketing trick that finds limited application these days.

Lew


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