Rebuttal to the ACCC argument allowing Tooltechnic to price fix. 15) It is hardly surprising that 9 Festool dealers support RPM. Their opinion is largely irrelevant. They are profit-driven. In my experience, their service WRT Festool is no better than any other product they sell. They just make more profit from Festool. 18) Festool and Fein products are premium PRICED products. Some products are equivalent to competing products, some are superior and some are inferior. In my experience only one Festool dealer I’ve visited demonstrated a superior knowledge and ability to demonstrate the product adequately. That dealer has since closed it’s doors. Not one of the three Festool dealers in my area are able to demonstrate many of the Festool products and do not stock the full range. Nonetheless, they want full prices to be paid for those products. 19) I) See above. ii) Gobbledegook. iii) More gobbledegook. iv) Nonsense. v) More gobbledegook. vi) I’d like to see some evidence of this claim. vii) More gobbledegook. viii) Not in evidence. 20) Irrelevant. Why should Tooltechnic be provided a competitive advantage? 21) Not in evidence. Some Festool products are as much as double the price of an equivalent product (made in Germany). 22) Of course. Tooltechnic wants to extract as much money as possible from it’s customers. The ACCC has ably assisted in this desire. 24)I) Perhaps, but irrelevant. RPM is illegal. ii) We have no way of knowing if this is true or not. I can attest to that fact that the same tool I purchased directly from a German dealer cost less than half the cost of the same tool in Australia. That price included freight and other costs. SOMEONE is making a great deal of money from Festool products. iii) Since Tooltechnic introduced price fixing, prices have only increased along with the usual inflationary pressures. iv) Despite repeated inquiries, I have been unable to test several Festool products at three local dealers. Clearly, this claim by Tooltechnic is bogus. 25) OK. 26) And the results are? 27) i) Well, Festool dealers would say that. Festool and Fein products are NOT more complex that other, competing ones. Moreover, there are other consumer products that are far more complex than Festool and Fein products. Cars and mobile ‘phones are two examples. There are many more. ii) Not in my experience. iii) Gobbledegook. In the real world of consumer products small dealers compete with large dealers on a level playing field. iv) I expect nothing less. I caused a fault with one of my Bosch tools. The tool was out of warranty. I took the tool back to the dealer, who passed it onto Bosch, who promptly repaired it free of charge. Exemplary service from a tool I was able to purchase at a discounted price. v) I cannot speak to that. vi) I cannot speak to that. vii) Yes. 28) Yes. That is precisely the case with Tooltechnic products. 31) Not in evidence. The three Festool dealers in my area have little of no knowledge of some Festool products and are unable to demonstrate them. They are able to source those products at full RRP. 32) Gobbledegook. 34) ALL customers pay more for Festool, Fein and now Sawstop products. 35) No need. Festool and Fein products are already over-priced. I was able to source a Festool product from a German distributor for around 50% of the cost of that same product in Australia. 36) Well, yes, but so what? Other premium brands, like Bosch are not subject to RPM. Festool and Fein should stand or fail under the same market conditions as other brands. If they cannot survive, then they don’t deserve to. 37) Tooltechnic may have little incentive to set it’s prices higher, but it does. 38) Irrelevant. 39) RPM for Tooltechnic products results in unfair standards for other tool brands. We have already seen one other brand attempt to engage in RPM (DeWalt). Their application was (rightly) rejected. Tooltechnic’s RPM deal should be cancelled. 40) Irrelevant. RPM is RPM and is illegal. 41) This is just plain nonsensical. A mobile ‘phone is far more complex than any Festool product. Many other domestic products are similarly complex. A laptop computer is infinitely more complex than any power tool and is available without the burden of RPM. I purchased a competitive power tool from my local dealer, at a substantial discount. Outside the warranty period, I damaged the tool (totally my fault). I took it to my dealer and it was repaired and returned free of charge. All from a dealer who sold me the tool at a significant discount over the RRP! 42) This has been the case for time immemorial. Singling out Tooltechnic dealers for special treatment is just unfair to the rest. This is, arguably, the most bogus excuse I’ve seen yet. 43) Of course Festool dealers like RPM! That is obvious. They make more money. Festool dealers should have no say in the retention of this system. 44) When I have required service for my premium Bosch equipment (purchased at a significant discount), the service has been exemplary and well beyond my expectations. FWIW: The tool was made in Germany. 45) Irrelevant. 46) i) Not in my experience. ii) Irrelevant. iii) I cannot speak to that. iv) Of course. Festool products are VERY expensive relative to other, similar, products. 47) i) Irrelevant. ii) Precisely. Tooltechnic has an unfair advantage. Iii) Nonsense. Festool/Fein products are not significantly different to other, premium tools from other manufacturers. iv) Not in my experience. v) So? I fail to see a valid argument here. 48) I fail to see any of this occurring. I fail to see the logic expressed here. 50) The price is ALREADY high. Tooltechnic have priced their products at a MUCH higher level than those same products can be sourced in Europe.
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