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View Full Version : Woodcraft sales exclusions???



Michael Gibbons
12-31-2009, 10:55 PM
I'm curious as to why Woodcraft excludes certain things from the sales they send notices to me on? "Discounts do not apply to Sawstop, Festool, Leigh jigs etc.." Price fixing? Not enough to go around? Anybody?

Jim O'Dell
12-31-2009, 11:03 PM
Rockler does the same thing. I think they have little margin in those items, and don't want to give them away. Probably comes down to price break/items they purchase. I doubt that either of them stock a lot of cabinet saws or band saws for that matter. Therefore they don't get the price breaks. Other items have bigger margins so they can afford to give a percentage off and still be ok. Just my thoughts. Note: Festool probably doesn't fit in the above thought. Theirs is more price controlled. Just like Bose speakers used to be when I sold them. Maybe still are? Jim.

Rick Erickson
12-31-2009, 11:11 PM
I'm guessing it has something to do with vendor pricing rules. Festool, for example, doesn't allow sales on any of their stuff.

Josh Reet
12-31-2009, 11:14 PM
I'm guessing it has something to do with vendor pricing rules. Festool, for example, doesn't allow sales on any of their stuff.

Rick is most likely correct. That is the reason in every other industry I have seen.

Dave Lehnert
12-31-2009, 11:40 PM
To become a dealer you have to agree to "MAP" Market adjusted pricing.
You have to sell at that price or have your dealership pulled. You are seeing it more and more today.

At times you will see a popular, hard to find, item being offered at a store for a few $$$ more than regular price. People are quick to say "price fixing" but most often its because a store is unable to get the product through regular channels and they are buying it at full retail themselves.
They do this for a convenience to their customers.

Tony Bilello
12-31-2009, 11:50 PM
Rick, Josh and Dave are correct. I got that info from a Rockler Mgr a few months ago.

Rick Fisher
01-01-2010, 12:13 AM
Well, in the building supply business, there are plenty of items that there is less than 15% margin to begin with.. So if there is a 10% or 15% off sale.. Why bother ?

Woodworking machinery, for the average retailer is pretty low margin.. If your buying from Delta, PM, Jet, or any of the 2 - step guys.. its pretty lousy business..

If you buy a Cabinet saw for $2500.00.. Its likely that the store that sold it to you paid between $2200 and $2350.. If its Delta or PM.. it could be even worse..

The goal is to build up accessory business. Blades, abrasives, screws, adhesives, bits.. that is where the margin is ..

Selling stuff like machinery at cost = bad business..

The worst part is that because the customer dropped $2500.00 .. he expects outstanding service. The fact that the store made little money on the sale is not at all relevant to the customer.. If the saw has a problem.. its the retailer's problem, as well as the manufacturer..

My company got out of the business, I enjoy using the machinery, but I dont sell it.. For the reasons mentioned above..

Ron Carlton
01-01-2010, 12:48 AM
snip Note: Festool probably doesn't fit in the above thought. Theirs is more price controlled. Just like Bose speakers used to be when I sold them. Maybe still are? Jim.

Bose speakers shouldn't be mentioned in the same paragraph as Festool:eek:! Bose are under performing, over hyped and over priced speakers.

BTW I own Klipsch speakers (K-horns, LaScalas, Cornwalls and Heresys).

Jim Becker
01-01-2010, 6:54 PM
Many vendors have minimum selling prices as well as minimum advertised pricing rules. This is not "price fixing" (which would involve multiple companies colluding); rather, it's perfectly legal and absolutely common across all industries and product types.

Stephen Edwards
01-01-2010, 8:20 PM
Many vendors have minimum selling prices as well as minimum advertised pricing rules. This is not "price fixing" (which would involve multiple companies colluding); rather, it's perfectly legal and absolutely common across all industries and product types.

Correct. Price fixing would be, for example, widget manufacturer ABC colluding with widget manufacturer XYZ to set the prices of their similar or identical products. As Mr Becker correctly notes, it's perfectly legal for either manufacturer to set a minimum price for their product throughout their distribution network.