AJB Temple
Finely figured
I was in my local trade tool dealer today. Smallish shop packed to the rafters. He has recently started to stock Festool and previously told me that he can't make money from it. So I asked what had changed and the answer was "nothing".
He said he is selling Festool for about the same price as he buys it. So it makes no margin but does help to bring people in. He depends on his annual rebate, which obviously depends on how much he sells. He said some dealers eat into the rebate and effectively sell at a loss at the point of sale.
Most of the stuff had small Festool cash back offers.
This does not strike me as a sustainable retail business model.
He said he is selling Festool for about the same price as he buys it. So it makes no margin but does help to bring people in. He depends on his annual rebate, which obviously depends on how much he sells. He said some dealers eat into the rebate and effectively sell at a loss at the point of sale.
Most of the stuff had small Festool cash back offers.
This does not strike me as a sustainable retail business model.