Why Is Festool Allowed To Fix Its Prices?

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I think if there was any way at all I could justify buying a Domino, I woul d. I have only used it to cut a test slot, but having seen what it can do I wouldn't hesitate to buy one if I needed it. Having seen Leon's use of i t over the years as well as understanding >>how<< he uses it has sold me. I don't know of anyone that has been more creative in that tool's use. I h ave seen him use it for building great joints, as an alignment device that gives great connectivity and even as a decorative feature in a joinery.
The Domino reminds me of when I got my first "hole shooter" or drill that w as powerful enough to drive screws back in '75. You could buy a drill to m ake a hole in general carpentry use, but a real Milwaukee "hole shooter" al ong with long Phillips screws that were drivable changed everything. In '7 5 a "good drill" was about $30. A Milwaukee drill that could drive screws all day long was a whopping $90. Drivable screws were expensive themselves and hard to come by, but after about 2-3 years the screws were everywhere.
We soon found out in use you couldn't drive the longer screws with cheap dr ills. More and more we were screwing things together as we found out that you didn't need to clamp, you didn't need room to apply a mechanical fasten er, and they held very well. I was working in commercial then, and we star ted screwing everything together. My screw driving drill was just as impor tant to me as my circular saw. Strangely, most of my carpenter friends wou ldn't invest in a powerful drill to drive screws. What a shame.., my forty year old drill still works, so I would say it was certainly worth it.
I think another similarity is the fact that the more we screwed things toge ther, the more things we thought of we could do more easily by screwing ins tead of nailing. We didn't need to clamp as much and the joints still snug ged up tight so that made their use much quicker to connect wood, and even dissimilar materials. When we started doing all steel framing, it required the ubiquitous "sheetrock screw" that you see in all sizes now. Then sudd enly, there were screwguns, screw shooters, and we started to get details f rom architects that required components to be screwed together.
I see the Domino that way, and if they ever get to the point where their pa tents expire or the license out their technology, I would be that there wou ld be a slew of new uses for that machine, just like the old screwshooters.
And like the Fein multitool. Now that I have beat the living snot out of m y HF model, I would have bought the Fein model and gladly paid the fortune they were asking for it had I known how useful it is. I had no idea... but the longer I have it the more I find to do with it.
Robert
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I have an old, relatively old, DeWalt 3/8 corded drill. It is a decent drill and probably the best corded that I have owned. Swingman has a Milwaukee hole shooter and I have used it. That will be my next corded drill. Those drills simply spin the chuck and anything attached to the chuck "or" it spins the operator. :-). There is no staling that drill, pull the trigger and something is going to spin, the chuck or the drill and what is holding the drill. It has a simple task and it does that better than any drill that I have ever used.
And speaking of drills, here it comes, wait for it, there is something similar to the hole shooter in the cordless drills. Four years ago I was using the best brand of cordless drill that I had ever owned, Makita. It was a 12 volt model and I also had its side kick the impact driver. That was my first impact and as most know the impact is one of those tools you don't really understand its versatility until you start using one. It effectively replaced the corded DeWalt when extra grunt was needed. I would say that 98% of what I needed to spin was done with the combination of those two Makita tools. Four years ago I was on my second set of batteries and in need of my third set and after 7-8 years there were improved models out there. Last Christmas 3 years ago my wife bought me the Festool T-15-3 cordless drill set. Well I could have bought another new Makita drill, impact, charger, and a pair of batteries for less than half of what she paid. It was at least comforting to know that with Festool's pricing policy that she did not have to shop the suppliers to get the best price. So for the last 3-1/2 years neither of the Makitas, or the Bosch impact, that mysteriously showed up on my door step several years ago, or the corded DeWalt have seen any action. I thought surely I would have to keep one of the impacts going but have not found that to be true. I went from using the Makita impact for 65% of my driving needs to zero after getting the Festool t-15 drill. I'm not sure if it is the brushless technology or simply the Festool's superior quality but it drives 3-1/2" deck screws with no hesitation. Now most any drill will do that but I can drive the screw at most any speed, even at a crawl, and stop 3/4 into the edge of a 2x4 and resume driving that screw with just a slight pull of the trigger. I was almost overjoyed to learn a few days ago that Festool warrants their new replacement batteries with the same 3 year warranty as all of their other tools. And equally as happy that they announced that they dropped their pricing on their batteries. A little research with an on line retailer indicated that I can buy a new Li-ion 5.2 amp battery for $55, shipped.
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On 7/29/2015 1:19 AM, snipped-for-privacy@aol.com wrote:

Reminds me of a time when I focused on building recording studios.
All of the interior framing (double stud) was done with a hole shooter and screws, maybe not IBC by today's standards, but guaranteed effective, and still standing.
--
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Very open ended question. Cannot be answered on it's own merit.
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-Mike-
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Nope! A company can dictate a price but several cannot get together and predetermine a fixed price to. If all were able to fix their prices there would be no choice. You have the choice to buy Festool brand or another brand.
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wrote:

The combination of a MAP pricing agreement (the dealer gets something for following the MAP so he agrees follow it) and the marigin that the dealer can make at the MAP price may be enough to make all pricing the same.
Frank
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A common misconception.
If all makers of the Domino system colluded to fix the price, then yes, it would be price fixing. But since Festool is the sole maker of the Domino system they have pretty broad rights to set their price.
If Festool's position meant you couldn't join wood at all unless you used just them then there would be a monopoly issue. However since there are many ways of joining wood this also falls flat.
If Festool's actions financially damaged competitors there might be a monopoly issue. However since there are many alternative makers, even with broader user bases and lower prices on similarly useful designs this also doesn't apply.
These ideas often get applied to computers as well with similar misconceptions.
--
MT - Diagonally parked in a parallel universe.


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At least in Australia Festo and their local agents HAVE been successfully prosecuted for price fixing, and fined several hundred thousand dollars. Unfortunately this conviction & fine seems to have had no effect on Festo retail pricing.
In the US Festo prices are relatively much lower than in Australia or even in Germany - a replacement battery that sells for $75US cost around $250US in Australia, and according to a number of US suppliers Festo have now advised their US retailers that anyone selling & shipping ANY Festo products outside the US will be 'terminated'.
regards Bruce
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