Quite a few Makita tools just increased in price as of 4/1/22. They have also been reconfiguring certain tool kits with 4Ah batteries instead of 5Ah batteries.
Festool is very well known for annual or near-annual price adjustments and increases.
SawStop just issued a price increase notice on social media.
A lot of tool users have been critical about Festool’s price increases, but many tool brands periodically increase their prices.
As you are probably aware, costs have gone up over the past two years. Raw materials cost more, parts cost more, shipping costs a lot more, and there are still quite a few shortages that are also affecting very many different industries.
Tariffs have also been responsible for past pricing increases.
I was (and still am) in the market for woodworking vise hardware. Last fall, I was thinking about finally making my purchase, and I kept looking at the same brand.
Overnight, the prices shot up by quite a bit. If that brand had issued a “price increase” notice, I would have placed my order. But, the price went up unexpectedly, and so I decided to hold off for a bit.
A lot of people think that Festool is playing games with their pricing, that they deliberately increase prices every year. But to me, it seems like it’s just an adjustment. Although rare, prices have decreased in the past. I remember looking at a price list before a Festool increase once, and I made it a point to buy some accessories afterwards to save some money.
If you’re planning on buying a product, but aren’t in a rush, or maybe you’re sitting on the fence and just about to leap in the direction of a product, maybe a price increase notice will light a fire under you.
Retailers sometimes publicize these increases for that purposes, because they know it might push you to buy something.
Maybe brands and manufacturers share in this knowledge, but I don’t think it’s a motivation for them.
Here’s my point. Price increases suck. Who wants to pay more for the same thing? But, if costs have gone up, manufacturers are spending more, and so they need to pass that onto retailers and consumers.
Sometimes rising costs can be absorbed a bit, depending on the brand. Brands that heavily discount tools for holiday shopping seasons can usually handle small cost increases without passing it onto consumers every year.
But sometimes, there’s not much flexibility.
Grocery store margins tend to be very tight. Food suppliers are going to pass cost increases onto markets, and markets are going to pass the increases to customers in the form of higher prices.
The gas station isn’t going to eat cost increases, and neither are their suppliers. When gas prices go up, the cost at the pump goes up.
Tool prices aren’t going to change day to day, but year to year? It’s not unfathomable given what’s been happening to the global economy and supply chains right now.
Festool seems to adjust their prices every year, other brands might go a couple of years in between increases.
With some products, unit costs might decrease over time with sales volume, but there could still be factors that prompt an increase.
There are a lot of unknowns when it comes to pricing.
I’ve been reporting on the tool industry for more than 13 years now. I have purchased a lot of tools, advised many readers, and posted about a lot of tools in this time. There have been very many increases on everything from screws to power tools.
Maybe some tool brands and retailers are leveraging price increases to push sales. Your opinion is as good as mine here. But all of them? No. Price increases aren’t (usually) a marketing tactic, although some brands and marketers do try to make the best of it.
Again, price increases suck. Nobody likes them, but it’s an eventuality.
Wouldn’t you rather know an increase is coming? Or would you rather be surprised?
Personally, I really don’t like being surprised by price increases. If increases are pending, especially when they broadly affect a brand’s offerings, I’d rather know about it.
Most times, does it even make a difference to a brand? If 100 people plan to purchase a rather unique product from one particular brand, the net sales over time will likely be the same, increase or not. Maybe the increase hurries some customers along, but is it going to have a net positive effect for the brand over the span of several months or a year? I don’t think so.
Price increases are often inevitable. And, most of the time you’ll never know about an increase until you go to purchase a specific product you’ve been researching.
If and when broad increases are planned, I’d rather know about it.
Given how much I don’t like to be surprised by price increases, I’d rather know about them, especially when a lot of a brand’s SKUs are affected.
Do you agree or disagree?
