Lee Valley & Festool

[Warren Wilson]

I saw the following odd message on the Lee Valley website. Anyone know anything about it?

Dear Customer,

Circumstances beyond our control have made it uneconomic to continue offering the FESTOOL line of power tools. While the associated accessories and supplies are also affected by the same external forces, we will continue to support the products already sold to the best of our ability.

We fully expect that this will be a relatively short-term problem, and hope to offer the complete line again soon.

In the meantime – we'd suggest that this is a good time to replenish your supplies!

Please accept our apologies for the unplanned interruption in service.

Lee Valley Tools Ltd.

[Jonathan Spool]

Most likely due to the weak status of the Canadian currency

[Rod Sheridan]

Most likely due to the weak status of the Canadian currency

That's my guess as well, imports are tough, great time to export..........Rod.

[Rich Harkrader]

The Canadians went all in on oil. The flop has not been kind to them...

[Steve Baumgartner]

And no doubt coupled with the way that Festool strictly dictates the prices charged for their products. LV got caught in the middle.

[Grant Wilkinson]

I don't see it on the website. Is it on the US site or the Cdn one?

[Don Kondra]

Festool is one of the main headers at the top of the Canadian page. If you click on it you get the message.

If you change your country to the US, it is not listed at all.

Cheers, Don

[Harvey Miller]

Was just at their Ottawa store. They've removed all their Festool power tool stock from the showroom. The only thing left on the shelves are consumables & some accessories.

[Timothy Shouldice]

Wow, sucks for anyone who had been planning on buying a Kapex come Feb. 1st when they were scheduled to be on sale.

[James Zhu]

Wow, sucks for anyone who had been planning on buying a Kapex come Feb. 1st when they were scheduled to be on sale.

There are other Festool Canadian dealers, http://www.festoolcanada.com/where-to-buy/buy-online/

I have not checked all the dealers, but elite tools and FMI Group still have the Kapex 10% off for Feb on their website. Maybe it is time to buy it, cause Festool might raise the price if the Canadian dollar keeps falling.

[Will Rowland]

I went by the Rockler in Houston last weekend to pick up some Dominos, and I was surprised to find out that Rockler has also stopped carrying Festool products, including consumables.

A bit of Googling around suggested that Festool was requiring Rockler to purchase, and maintain, high levels of inventories of the full Festool range of products - and Rockler balked at the prospect.

[Chris Parks]

Festool Australia has just had an exception granted by the government concerning price maintenance. From March or maybe April they will be allowed to tell the retailer(s) the minimum price the product can sell for. It makes sense in some ways where all the retailers play from the same level and one dealer cannot cut the others selling margin to shreds but it is tough on the user who must pay the Festool tax. I as a retailer never held sales as I think in the end they are counter productive, sell the product at a fair price and sales become null and void.

[Mike Chalmers]

The Canadians went all in on oil. The flop has not been kind to them...

That's a little simplistic. A couple of provinces (states in the USA) have a lot of their eggs in the oil basket, however, oil does not drive the total economy. Does it hurt some places? Sure. Is it the reason our dollar dropped? Not really.

It is, however, good to note that there is someone that realizes we Canadians do more than ice fish and cut trees.

[Kelby Van Patten]

That's a little simplistic. A couple of provinces (states in the USA) have a lot of their eggs in the oil basket, however, oil does not drive the total economy. Does it hurt some places? Sure. Is it the reason our dollar dropped? Not really.

The banks, economists, and CBC might disagree.

http://www.cbc.ca/news/business/canadian-dollar-could-fall-to-75-cents-on-weak-oil-prices-experts-say-1.2933280

[Mike Chalmers]

The banks, economists, and CBC might disagree.

http://www.cbc.ca/news/business/canadian-dollar-could-fall-to-75-cents-on-weak-oil-prices-experts-say-1.2933280

Just means our exports to you will be cheaper. We shall sell more and have a bigger market share of your economy. Cheaper gas and a resurgent industrial sector. Perhaps not the best situation, but, it could be a lot worse. Also remember we came back from the crash better than most in the world, including the US of A.

The down side is that the laguna 3HP cyclone I want is going to be going up in price. Just have to wait a little longer.

[Grant Wilkinson]

Don: Tks, found it.

On the Canadian Woodworking forum, Robin Lee explained in some detail why LV was dropping Festool, at least temporarily. Festool dictates both what they sell to dealers for and what dealers can sell to their customers for. It sounds like Festool is saying to Canadian dealers that they have to buy a tool for 1.00 and sell it for .95 - not a great way to stay in the business of selling Festool.

[Frederick Skelly]

That's a little simplistic. A couple of provinces (states in the USA) have a lot of their eggs in the oil basket, however, oil does not drive the total economy. Does it hurt some places? Sure. Is it the reason our dollar dropped? Not really.

It is, however, good to note that there is someone that realizes we Canadians do more than ice fish and cut trees.

Just as an aside, I dont know much about oil or Econ, but I dont think anyone intended to be critical of Canada in this thread. Many of us know very well what a GOOD friend and neighbor Canada is and has been.

Two examples that immediately come to mind. First, the very brave Canadian diplomats who helped some people escape iran (at great risk) in the late 1970s. Ive read that story multiple times and Im still in awe. Another is the immense kindness of the Canadian people when airliners were grounded in Canada in the wake of September 11th.

Best regards to Canada,
Fred

[James Zhu]

Don: Tks, found it.

On the Canadian Woodworking forum, Robin Lee explained in some detail why LV was dropping Festool, at least temporarily. Festool dictates both what they sell to dealers for and what dealers can sell to their customers for. It sounds like Festool is saying to Canadian dealers that they have to buy a tool for 1.00 and sell it for .95 - not a great way to stay in the business of selling Festool.

I doubt Canadian dealers will lose money selling Festool products, most likely, lot less profit than before because of sinking Canadian dollar. Otherwise, all the Canadian dealers would stop selling Festool products.

You still can buy Kapex 10% off from Elite tools and Felder Canada.

https://www.feldercanada.com/category/kapex-miter-saw
http://www.elitetools.ca/en/product/scie-a-onglet-radiale-festool-ks-120-eb-set/

[CPeter James]

Or is this like the Amazon and Tormek controversy several years ago, when Amazon lost the right to sell Tormek because the were discounting and that isn't allowed?

CPeter

[Paul McGaha]

Just as an aside, I dont know much about oil or Econ, but I dont think anyone intended to be critical of Canada in this thread. Many of us know very well what a GOOD friend and neighbor Canada is and has been.

Two examples that immediately come to mind. First, the very brave Canadian diplomats who helped some people escape iran (at great risk) in the late 1970s. Ive read that story multiple times and Im still in awe. Another is the immense kindness of the Canadian people when airliners were grounded in Canada in the wake of September 11th.

Best regards to Canada,
Fred

+1. In my opinion and an opinion that I would think is shared by millions of Americans, Canada is the best neighbor a country could have. Eh.

PHM

[Rod Sheridan]

And no doubt coupled with the way that Festool strictly dictates the prices charged for their products. LV got caught in the middle.

Probably true, also Canadian festool products come through an American distribution point.

If the US dollar is OK versus the Euro, they may not have taken the Canadian dollar value into account..........Regards, Rod.

[Mike Chalmers]

Just as an aside, I dont know much about oil or Econ, but I dont think anyone intended to be critical of Canada in this thread. Many of us know very well what a GOOD friend and neighbor Canada is and has been.

Two examples that immediately come to mind. First, the very brave Canadian diplomats who helped some people escape iran (at great risk) in the late 1970s. Ive read that story multiple times and Im still in awe. Another is the immense kindness of the Canadian people when airliners were grounded in Canada in the wake of September 11th.

Best regards to Canada,
Fred

Thanks for the kind words.

[Harvey Miller]

Rob Lee (Lee Valley) just announced they have reached agreement with Festool & will continue to carry the line. The Canadian website's disclaimer has been removed....