Just picked this up:
This is a great move for Festool as it makes sure there will never be price competition on their tools, parts, service, etc., so they can price as they want. It should cut down on their distribution costs as it will be able to drop ship dealers what they want.to send them. With a locked down system following the Stihl model, I can only imagine what tool repairs and parts will cost. My DeWalt/Milwaukee/ Porter Cable authorized repair center here is already $75 bucks an hour. Following the Festool pricing model, I can't imagine what "factory authorized service" will cost.
I know they told me at WoodCraft a couple of weeks ago that they cannot keep the Domino or the Rotex sanders on the shelf no matter how many they get. But they can't sell the circular saw, router, jig saw or other tools nearly as well. Yet when they buy the Dominoes, they are forced to buy a certain amount of other products as well.
Can't wait to see how long Woodcraft holds onto that product line when they are forced to sell $1400 Domino machines and $700 6" sanders.
And wait until you have to buy a full Systainer system with accessories with every purchase.
I wonder if they will do to Festool what they did to Akeda. Absolutely sell the hell out of the product for a few years, support it in every way, and when they do get their margins for one reason or another, they drop the line.
I noticed too, that Amazon is already taking off all Festool products, including the ones from affiliates.
That can't be good. Get 'em while they're hot!
Robert