On 12/6/2013 5:32 PM, email@example.com wrote:
Yeah, it is a half day trek from where I live south of Atlanta. I got
spoiled in Dallas because I drove by Woodcraft every day on the way to
work. I will say the Atlanta store seems nicer and better stocked, but
I guess it ought to be since it is the only one in GA.
We just moved to the SW edge of Atlanta a year or two ago (me, two
years - wife, last year) from Auburn Al. We used to do weekends in
Perimeter about four times a year. Now it's maybe a once-a-month trip
up there. There is a big gun show at the North Atlanta Trade Center
next weekend, so it'll be twice this month. ;-)
OK, I think I got it, now.
"Festool will free you of paying the rent."
"If you want a money-free life, buy Festools."
...or... "After that Festool purchase, you're free to live in the
Surely what of what one is paying for is "excusivity" (yes, it's a word,
I didn't think it was, but I checked). One can generally trust a
retailer to know precisely what they are selling, and pricing
accordingly. If one diamond ring was only priced $500 more than
another, it might not appear as shiny. But make the difference $5000,
then people will go wow. I think some of the retailers have more fun
selling things having exclusivity. Some people can surely justify
Festool tools on their features, and some can probably justify them on
other basis. I don't think sellers care why you buy. Just like
Exclusivity? How so?
Everyone under the sun seems to be selling Festool (weird since,
according to all reports they make almost nothing on that investment).
Diamonds are a whole different thing. There is no way and individual
can realistically compare diamonds. Ever notice how the commercials
say "He bought it at Jared", not "The South-African Blood is better
than..."? The sizzle is in the retailer, not the product. (It can't
be - diamonds are only valuable because of DeBeers' monopoly.)
There is something to what you say, though. Moons ago, Seagram's
profits were declining in the growing population of liquors. Rather
than cutting prices to increase sales, they increased marketing and
*increased* price to sell as a premium brand. No one gives rot-gut at
Christmas but they do give "top shelf", or whatever Madison avenue can
pawn off as "top shelf". Their sales boomed. Business schools are in
the business of teaching this stuff.
I think there is more than some Seagrams in the Festool brand but,
unlike Seagrams, it really is better stuff. 2X? To many, the answer
is, obviously, "yes".
I don't buy your implied comparison between Festool and DeBeers,
Nobody makes anything on anything these days. Check how much federal
income tax was actually paid by your favorite multi-national corporation
last year. Hint: Just because you can see it in a financial statement
doesn't mean it was paid.
Well, now we're on a different subject altogether but I'll counter
with "GE". ;-)
I'm not talking about after-tax profits, rather top-of-the line
margins. I've been told, on tools they're lucky to get 15% and maybe
half that on Festools.
I don't think it's odd that Festool would have such small margins,
rather what's odd is that it seems everyone wants to carry them. There
are four WW stores in the Atlanta area (that I know of). Three carry
Festool (the fourth, Peachtree, is heavy into Bosch - the whole
product line). One of those (Highland) seems to carry every Festool
and accessory, in stock. 110" track? "No problem, wait a minute and
I'll get one?"
When a corporation does not follow the law, people are outraged. GE is
following the existing tax laws and people are still outraged. Blame
the lawmakers and get them to change the laws.
Oh, don't give that moral obligation crap unless you are paying all your
taxes and skipping deductions, paying use tax for that mail order stuff
I didn't say they were doing anything illegal, only that they paid
*NO* tax, even though they obviously make money here.
Well, that and the small problem of who actually writes the laws.
The real issue is that the tax laws have been allowed to get so
perverse that tax lawyers and lobbyists make more money for
corporations than does investing. Fair or flat, is the only choice.
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