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Sure.

Well, it's not those who aren't paying that piss me off, rather those who allow it, freely, while harping on those who do pay the lions share. IOW, Obama's crew.
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On 12/8/2013 10:20 AM, Ed Pawlowski wrote:

What most of us know to be right and wrong, does not exist for a politician, The scum of the earch become politians. I'd rather deal with a common criminal than a politician. At least you know what you are getting.
Our politicians are allowed to do insider trading. The voted to stop that after a 60 minute show..
Then when no one was looking they voted to repeal it. You and I goto jail for the same thing.
How do you change that? I vote out the incumbent, but there are not enough people who believe in that. I vote independents these days as I don't believe the party system is working.
You can't change it, because we American's are stupid.. we vote the same peope in election after election.. why do we expect it to change...
--
Jeff

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Are you talking about the manufacturer or the retailer?
--

dadiOH
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wrote:

Retailer.
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On 12/7/2013 4:03 PM, snipped-for-privacy@attt.bizz wrote:

I interviewed for the job of running a WoodCraft store about 4~5 years ago. The profit margins are far greater than what you think. there are a few items that are low as with any trade but seriousely if the profit was as skinny as those you mentioned there would none of the stores around. Now having said that the BIG BOX stores can operate with those kind of margins because corporate is making majority of the profit with it's negotiation with the manufacturer. What ever the stores make on top of their expenses is additional gravy.

Nothing odd at all, every one wants to carry the brand because the profits are greater than what you have been told. The comments of the low mark up are simply a sales ploy to back up why none of the retailers are allowed to sell for less than suggested retail. If Festool was as low of a profit brand as you seem to think I seriously doubt that any one would actually be carrying the brand.
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On 12/8/2013 1:52 PM, Leon wrote:

Years ago I worked for a company associated with the hobby industry. Probably not much different than tools. We worked from the alleged retail price industry wide. Dealer got a 40% discount from list when they bought from a distributor. Distributor pricing was 50-10-2 or 50% for any order, additional 10% on orders over minimum, 2% for 10 days. So a distributor paid $4.50 for a $10 list and sold it for $6. The dealer paid $6 and sold it for about $9 to $10. Our cost for making a $10 item was usually about $2.50 or less.
There were some exceptions in the industry. We had one high priced item that was discounted less. (I forget exact amount, but about 10% less than usual) It was an item that had a good market for $40 retail, but no market at $50 retail
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On Sun, 08 Dec 2013 16:06:11 -0500, Ed Pawlowski wrote:

I worked at a Woodcraft a few years back. I can assure you that the markup on power tools is pretty low. The only stores making much money on power tools are Home Depot, Lowes, and the like, because they can order by the boxcar load.
If you want to know if their is much margin on any item, just compare prices. If the on-line price isn't a lot less, there's not enough markup to play with. Even then you have to allow for volume differences.
And yes, Festool is different. They don't allow discounts.
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This message was for rec.woodworking - if it appears in homeownershub
they ripped it off.
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Larry Blanchard wrote:

pricing strategy a while back too.
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On 12/8/2013 9:04 PM, Bill wrote:

Yea and it failed. Then the ceo resigned.
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Jeff

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wrote:

Except that Festool's strategy seems to be working.

...and they haven't gotten any better.
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wrote:

margins on most things are higher but I was specifically talking about power tools, and Festool in particular. Those margins are really tight, at least according to what I've been told. There is a huge investment, there, too.

Just what I've been told by several sources. I agree, it doesn't make much sense, though. I have noticed that some are carrying a lot less inventory, though.
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On 12/8/2013 3:18 PM, snipped-for-privacy@attt.bizz wrote:

So that, heavily stocking a low profit item really does not make business sense, does it? No body really tells it like it is concerning profit margins, it would be like foot ball teams exchanging their play books.

From an inventory stand point you really don't want to stock more than what you can sell between stock orders.
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Especially when upgrades are continually coming down the pipe.
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wrote:

No, it doesn't make a lot of sense. As Bill pointed out recently, I can't figure out why all of the stores keep a hundred square feet of their expensive floor space full router table tops, either.

That's a great idea, in theory. The problem with theories is that reality keeps getting in the way.
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On 12/9/2013 6:31 PM, snipped-for-privacy@attt.bizz wrote: snip

Whom ever is indicating that the mark up on the Festool product line is less than desirable probably is not seeing the actual cost and or profit once the smoke clears. Long ago when I ran the parts departments for our Olds and Isuzu franchises my counter men saw a mark up from dealer cost. That cost was not the actual cost, it was a base to start with, a value to place on the inventory. What I was actually paying was considerable below published cost. That is where the real profit came in as it only required me to place a planed stock order with no need to pay a commission to an employee. Basically the value of the inventory was much greater than the book cost of the inventory. That is part of the profit that the salesman and or many store managers do not see. Large franchises are often supplied by a company owned ware house. When you can place a million dollar order for a particular product line you see much deeper discounts. then you distribute that product to your array of stores at book cost. The corporate boys do the actual purchasing of the product, read that as what the corporation is actually paying for what the store orders, from the manufacturer and they pay well below what the store uses as its cost. Unless the manager or salesman is actually writing a check to pay for the monthly purchases he really does not know what the actual profit is for the corporation. He is only seeing the profit that he is making over published cost.

Well yes but with the inventory systems that have been around for several decades now it is a lot easier to do that when you had to control your inventory manually vs letting the computer work within your criteria. I was turning my automotive parts inventories 5~6 times a year, much to GM's dismay. They really wanted me to keep a 90 day supply on hand at any given point.
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On 12/6/2013 9:42 PM, snipped-for-privacy@attt.bizz wrote:

Well this might be true if you buy tool to collect tools. Festools have helped me make more money.
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wrote:

I suppose, but I know a lot of tradesmen who have the grungiest tools going. ;-)
Making sawdust is too fun to have to do it for a living. I thought what I do for a living was the best hobby, too, until I did it for a living.
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Generally a good reason for that. The guys who work for them will trash any tool in short order, so the rational is to buy cheap, and often.
Generally speaking, only those who work for themselves, and have to buy the tools they actually use, will take care of them.
--
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So true, working as an electrical contractor I easily got 80K out of a set of brakes, while probably having one of the heavier loaded trucks. If you got 40K out of the employees you did well. Most common reason was they did a crappy brake job and always did a better job on mine. Even while showing them an obviously over heated set of roors. I so don't miss having employees, at least know I know who to chew out.
Mike M
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On Sat, 07 Dec 2013 18:54:53 -0500, snipped-for-privacy@attt.bizz wrote:

I agree. Everything that I liked to do that led me into doing it for a living all reduced how much I liked doing it.
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