Analysis: Bunnings' market strategy

Price fixing is illegal. What about product pegging? If you haven't heard that expression before, get used to it because it is about to revolutionise Australian retailing.


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What Alan Carpenter should investigate is the claim that Bunnings have the 'lowest prices' and consumers realising this may not be the case. Bunnings should assess the quality of the research used here as Woolworths may now pursue the fact this may be a false claim. Bunnings management have been advised of this quality of research years ago.

Bunnings knows its getting massive profits better than the small independents can achieve and has been creeping margins for some time killing the little guys. the interesting thing is how high they already are compared to international standards and whilst the ACCC is well aware of this, it has clearly chosen to turn an eye for the diffuclty of dealing with the matter. Bunnings suppliers are the ones that have suffered and many are being cut, having ranges slashed and being screwed on prices. yet the giant continues to make record profits year in year out. Ryobi were given no choice by the giant in a ranging strategy that would have sent the brand to ruin in Australia unless they complied. the small retailers are doomed unless government starts to even the battle ground and this strikes at the heart of Australian values as families end up on the streets because they were white anted by a bunch of politicians, bureaucrats and corporate execs at a company many west australians were once proud of. Sadly small business has always been the biggest employer and best payer and workers will suffer when there are few options left.

It is easy to work together with only 2 giants controlling the whole market. Support small business , support MAKIT stores. It is better for the profits to fall into most Australians than 2 giants.

i fail to see why Ryobi would allow themselves to be exclusive to Bunnings when a major player like Masters comes into the market place. Surely Bunnings will drive the unit price down which will be paid for by Ryobi through volume discounts demanded by Bunnings!

East Perth
This type of cornering of the market should be banned...(no matter what it's called)....while it leads to cheaper prices for now for us as customers, once all the competition has been driven to the wall, prices will eventually go up!

Once Bill Shortens latest Financial Adviser Reforms get put through, the same thing will happen to Superannuation. There will be no one around to shine the light on the nefarious activities of the Union Super Funds, and their members will end up with greatly reduced retirement benefits, due to the resultant lack of competition.

We have to be somewhat philosophical about these situations arising. It is the ' cause and effect' syndrome, this time in retail sales. The does demand the best possible value for our purchase; ie the cheapest price for an item. We 'want' and we are endeavouring to make our dollar stretch. Thus the suppliers have us by the 'shorts'. We forget the consequences. The comments from Tony Coltrambe in my opinion are sound facts. Especially that of the small business being the largest employer. We are all shooting ourselves in the foot. We will lose out on service, (possibly already the case), employment (job security), and eventually affordability...most items of which will not be a Ryobi drill, but ordinary family sustaining items. There will have to be some 'encouragement' from our government to the biggies to drop their Greed Play in order to sustain a healthy business prospect for the majority players,...small business.

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