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10-01-2025, 10:43 PM | #1 | ||
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Interesting assessment of how Bunnings has impacted how we shop and how that effects the competition, and not necessarily in a positive way.
Having worked for a small family business for over 20-years, the retail landscape has changed massively over that time. Back then, there were seven different retail garden centers running in my area, eight if you count Mitre10. That number is now three, soon to be two. Now, competition is healthy as it spurs each company in the mix to strive for success, which in turn gives consumers more choice. But certain competition has ran many, many small businesses into the ground via unfair tactics. And I'm not just talking about having a higher purchase power, rather its the result of Bunnings dictating what price they will pay for their stock, rather than the supplier charging what they need to manufacture (or grow) a product and then make money doing so. On the plant side of the business, Bunning's would sign up wholesale growers under reasonable terms. Growers would then invest heavily into their stock output so as to provide sufficient volume to a national chain store. As time went on, Bunning's would then start dictating what they will pay in a take it or leave it proposition. With so much business tied up in a live product, a grower has little to no choice but to agree to the price, or risk going out of business. In some cases, these growers were locked into only supplying Bunning's and not allowed to sell to other retailers. And even with those price squeezes, the green life/nursery department of Bunning's has run at a loss for a very, very long time. In other words, they use the nursery as a loss leader, the rest of the store making up the shortfall. A small business simply cannot compete against Bunnings on price, nor can they have other sides of their business pick up the slack. As a result, independent businesses shut down, or charge what's needed and then appear as if they are price gauging. It also doesn't help when Bunning's offer a 12-month warranty on plants in a no questions asked way. So a customer basically gets free plants when they neglect or show proper care. I would often have customers tell me that they stopped buying plants at Bunning's because "they just die". To get those cheaper prices, wholesalers need to grow each plant as quick as possible. While the plant looks nice sitting in the pot, the root system hasn't kept up to the above ground material. So, when the plant is taken out of the pot, the potting mix falls from root system, which in turn makes it extremely vulnerable if not treated correctly and then "just dies". This situation is not apparent to most consumers, all they see is the huge price difference but don't understand how that price was made possible, then they get a free plant when things go wrong. So, Bunning's stormed into town, built up a network of suppliers, then squeezed the lemon dry to get the lowest possible price before selling those products at a loss, in effect running the established competition into the ground. And to cap all this off, they set up unrealistic consumer expectations to the point where its fueled massive entitlement. But hey, "Lowest Prices Are Just The Beginning".
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10-01-2025, 11:05 PM | #2 | ||
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No different to Coles & Woolworths, matter of fact it is the mega size companies driving the small operators out of business, best part is the customers don't give a s*** as long as the product is freely available at the cheapest price.
With today's marketing techniques people are brainwashed, especially the younger generations. |
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10-01-2025, 11:08 PM | #3 | ||
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Yeah have to admit, I am not a fan of Bunnings - use other stores when I can.
When I was in Adelaide there used to be an awesome Mitre 10 @ Golden Grove. At the time back in the 90's, they were heaps better - family owned, good knowledgeable people. Bianco @ Newton were great too for building stuff Now, its bloody hard not to buy @ Bunnings. And they are not always the cheapest.
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11-01-2025, 03:50 AM | #5 | ||
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Mire 10 are not well represented in Perth especially south of the river I am surrounded by Bunnings stores near me (eg Bibra Lake, O'Connor, Success and Melville stores) . In Bibra Lake but I have to travel many kms to get to a Mitre 10 in Kalamunda or Mundijong or the tiny one in Northbridge near the CBD. There is a both a Stratco and a Makit Hardware a bit closer in Canning Vale though. There's also a Blackwoods in Canning Vale but that's not really a Bunnings competitor. I still miss having a Masters store up the road.
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11-01-2025, 06:12 AM | #6 | ||
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I remember being able to go the local hardware with a container fill the container with Metho, Turps etc.
You could buy a bolt, nut, screw, washer etc. Now everything is prepackaged and the young generation claim the older generation don't care for the environment. |
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11-01-2025, 07:17 AM | #7 | ||
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So true!..
Mrs, who’s much more of a green thumb than me, insists on buying our plants at Poynton’s nursery (on the Maribyrnong river, Essendon) Naturally more expensive than Bunnings, but their stuff always grows!
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11-01-2025, 03:41 PM | #8 | |||
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We also had Jamie Durie make a surprise visit one cold winters day. I remember being on my hands and knees weeding and got a cheering hello and "its such a lovely nursery" from some guy, it wasn't until a co-worker almost hysterically pointed out who it was did I twig. We also had Costa Georgiadis and Vasili Kanidiadis visit, and I once took a phone call from Jane Edmanson, she was quite full of herself. Oh, and Wes Fleming was a right di.k. I spent 20 years trying to defend our prices. Some/most customers understood why we were more expensive, some would be quite rude about it and there was no reasoning with them. I once had a lady bail me up quite early on telling me that we had no right to charge so much when Bunnings sells the same plant for a 1/4 or the price, she was quite forceful too. What would annoy me most was how certain customers would come in and bail up a staff member for quite a while, speaking as if they had a great problem to solve, only to say at the end that they "were just looking today"...............I called them data miners because you just knew that they would then drive to Bunnings and buy everything you recommend. Or almost everything because they would come back later (hours/days) and buy only one or two of the countless items that were spoken about or chosen. Why do people do this, apart from being cheap? Because Bunning's staff are now actively discouraged from providing advice or detailed assistance in the nursery. So, they would come to us, either after having made mistakes or as "data miners". Used to drive me insane because all that time wasted on that customer takes me away from actual paying customers or other tasks that I always felt were just as important. The other problem with Bunning's is the inappropriate plants they would stock. As in tropical plants that look lovely in a magazine or sitting on the shelf that immediately turn to black in our frosty winters. We wouldn't stock those plants, and of the ones we did, a staff member would clearly outline the risk and where best to locate such a plant. Palms, bromeliads and the like just don't work here, and yet I could go out and buy them right now if I wanted and kill them all within seconds this coming winter. And all that does is set customers up for failure, not set them up for success. So, those customers then return to Bunnings, or come to us, disgruntled with gardening instead of returning to fuel a new passion. People would often ask me if I had thought about starting my own nursery and it was always a very quick NO! I spent 20+ years watching a small business battle for every single sale when the big green shed used plants (our bread and butter) as a throw away sale. No way I would want to play that game.
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11-01-2025, 03:55 PM | #9 | ||
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The truth is, prior to the pandemic, a lot of independent nurseries were on their last legs, they traded exceptionally well during covid, offering a well deserved retirement to hardworking owners.
They were legacy businesses, only there because grandpa bought the land decades ago when it was worth $3. To do it today you couldn’t get finance. One small mitre 10 I dealt with closed, why? Because they didn’t have an increase in turnover in 10 years, while costs to run the business when up by 100%. Not viable. And mark my words, if Bunnings was able to import finished green life they would. All the kangaroo paw tissue cultures are done OS and simply potted up here.
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11-01-2025, 04:06 PM | #10 | |||
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Very well off hard working family, they got out while it was still worth something.
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11-01-2025, 04:13 PM | #11 | |||
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Covid sales were crazy, we couldn't get enough stock to keep up with the demand. The problem for those who made it through the pandemic are now wondering why sales have slowed. Actually, this forms part of the reason why I left, the owners kept comparing current sales back to their "best ever" month or year.................which was during the extraordinary circumstances brought on by the pandemic. To me it was completely unrealistic to expect that to continue, then projecting that negativity onto the staff as if it was our fault customers were spending money on other things. Travel for example, which is actually the number one competitor to the nursery industry as gardening is considered a leisure activity. When I highlighted this, of course it was me who was being negative. For nurseries that made hay during that era, they should have been spending some of that money on modernizing their sales strategy. During the pandemic, a trip to the shops or local nursery became the highlight of the day. In other words, buying from bricks and mortar stores was highly desirable, because where else could you go? But at the same time, the online retail industry went nuts. And now that things are back to normal, guess which form of retailing is easier for the consumer?...................yep, sitting in the comfort of your own home clicking the Pay Now tab. So what did the business I work for do? They installed a hydroponic system to grow plants on the roof, painted the fence, installed security camera's that do absolutely nothing. Absolutely nothing was spent on the nursery itself, or on any form of eCommerce. And they wonder why sales crashed. Yeah nah, I don't want to run my own nursery.
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11-01-2025, 05:57 PM | #12 | |||
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Great to hear they got out while it was still good
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11-01-2025, 06:12 PM | #13 | ||
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As a counter argument, there is no doubt Bunning's provide work for thousands of people all across the country. I remember early on they targeted ex-tradesmen looking for a more relaxed workplace, in theory offering "expert advice" to their customers. That also applied to the garden center, I actually went to trade school with the local store's nursery manager. I'm not sure if that is still the case though.
I will also say that sometimes it's more convenient to just go to Bunnings, I don't always have time to go to multiple stores trying to find what I need. The early opening and late closing can also be handy.
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11-01-2025, 08:10 PM | #14 | |||
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I needed 3 screws for a curtain rod finial (the round lump on the end of a curtain rod) recently after repainting the inside of the house. It is an A/f thread. Do you think Bunnos even carry A/f thread in anything? Well as a matter of fact they do. They have a 3/16, 1/8 pop rivets and a hex grub screw that is way to big for what I needed.. That's about it. Do you think I can buy 1 of - Nut, Bolt, Screw, washer, nail, soft close door hinge, Dyna bolt? Nope, 4 pack minimum thanks. I had to go to see my mate Kevo at Autopro to get what I needed. Yes I couldn't buy one, as they came in a pack of 8, which suited me fine, as I needed 3 screws. It cost me $8. The point is, Autopro aren't the size of Bunnos, and can't realistically be expected to. Had a laugh though when I was AT Bunnos, a real hot sweet 45 year old thing had her puppy dog in a trolley.. and I really wanted to chat her up, so I said to her: Hey, what isle did you get that in? Did we have a coffee? Naaah mate. But hey, I'm a man, and ya gotta have a crack... it's fscken UN-Australian if ya don't. Cheers, and thanks to DFB FGXR6 for posting that super interesting back story vid. Had now idea why an ex mate of mine from a LONG time ago was 1000000% anti Bunnings. Now I know why he had such a 'tude' toward them. Cheers, One Mad Man
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11-01-2025, 08:18 PM | #15 | |||
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Had no idea you were in Costa Rica. Way cool. I'm gunna do a search on your posts to see what I am missing. I'm hoping / betting there's a few happy snaps. I'm a newbie compared to some... Anyway.. back on topic, sorry.. I thought it was just me that had a 'black thumb' when it came to plants. I do have black thumbs and don't get any enjoyment whats so eva out of weeding, mowing, planting, watering, working... he he he.. But the plants from Bunnos always died. And yet if I bought a plant from ANYWHERE else it lived... on a sample of 4 mind you.. So now I know it's not me, and the other thing I have just learnt is I can return it. What? Seriously? Get the F outta here.. Amazing. Cheers, One Mad Man
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11-01-2025, 08:24 PM | #16 | |||
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Again, this is another area in which Bunning's have created a new norm, it just fuels entitlement and unrealistic expectations.
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11-01-2025, 08:28 PM | #17 | |||
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Meaning, I can save $40 if I buy a can of paint for $20, instead of $60, only to find out 2 years later their xxxxx needs to be repainted, then complaining that the paint you sold me was rubbish.. Must be hard doin your job lad. I know we HAVE spoken about it in the past.. Anyway, not going to hijack ANOTHER thread. Cheers, One ad Man.
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11-01-2025, 08:32 PM | #18 | |||
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11-01-2025, 08:58 PM | #19 | ||
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Thanks DFB that's a really interesting insight into your business area. I was at school with a student who's dad was on the old bunnings board - just before it was taken over, I think by Wesfarmers (?) back in the day. Needless to say the old board must've got the chop. It was once a more local hardware operation.
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11-01-2025, 09:03 PM | #20 | ||
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I am addicted to Bunnings. I am also addicted to Ryobi power tools.
Having said that, and it has already been said in this thread, they are not cheap. If they are cheap it is because it is rubbish. Their price match policy is almost impossible to enact upon as most of their stuff is exclusive to them. Where we live we are lucky as we also have a big Mitre 10 that has a timber yard attached to it. Also, while NHS is not so close they do deliver. I find that both of these places are much cheaper if you are buying a large amount for those larger jobs. Fasteners can be half the price at Newcastle Hi-Tensile Bolt Company but they are a fair drive away from me. If I am close by I generally get a list together and call in there. |
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11-01-2025, 09:20 PM | #21 | |||
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As for products being specific to Bunning's, that also applies to plants as well. For any given plant, they will have the grower use a Bunning's specific label and/or an odd pot size. So, even though the genus and species is the same, this label and pot size prevents direct comparison to other retailers. Those specific labels/pot size are not offered or available to independent retailers either.
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12-01-2025, 12:15 AM | #22 | |||
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Bunnings return policy is a marketing ploy. The suppliers pay for it through rebates. Bunnings price match? Supplier. Opening a new store? A further 20% discount on buy price paid by supplier. Competitor selling cheaper? Supplier threatened with deletion. Their size means they influence all hardware lines coming into this country, no matter who sells it. Bunnings looses on NOTHING.
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12-01-2025, 01:40 AM | #23 | |||
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I bought a $55 Ozito die grinder kit, 160 pcs similar to this one: <a href='https://postimages.org/' target='_blank'><img src='https://i.postimg.cc/1XtTjcdm/Ozito-die-grinder.jpg' border='0' alt='Ozito-die-grinder'/></a> used it all the time, over many years, like 5+, and on one of the last occasions I used it was to cut a section of double skin panel out of my EL Fairmont Ghia. It got so hot, I needed to put on my welders glove so I could continue using it. Never died. I ended up selling, in working order, with the original case and bits for $40 around 2 years later. So on a sample of one, I'm a fan of Ozito. I use 18v Makita Brush cordless tools now, and have had the same trouble free use from my: Grinder Drill Recip saw Impact driver Whipper snipper leaf blower. I understand they are cheaper (Ozito), and no, I don't use them to make a living, so all in all, I think they are great value if you don't need to put food on the table by using them. My thoughts, Cheers, One Mad Man
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12-01-2025, 08:02 AM | #24 | ||
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Bunnings is always last on my list.
We have a small hardware in the town closest to me and I buy 99% of what I need there. Dave's prices are always close to the pricing from Bunnings and similar. His service is excellent and if he doesn't stock it he will find out about it straight away and get it if possible. I have to add that the nearest Bunnings to me is 75km but I have never even set foot in it. |
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12-01-2025, 08:27 AM | #25 | ||
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This is yet another example of why I have such low regard for the buying public.
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12-01-2025, 08:36 AM | #26 | ||
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I think Woolworths made a bad strategic decision with Masters by trying to be different.
If they had have taken Bunnings head on the outcome may have been different. A mate was a Carpenter would not buy from Bunnings. To many problems with the wood he missed out on some work due to price he would only buy from Timber yards. He told me Bunnings also have some name Bunnings only models from name manufacturers and you cannot get parts for a repair eg. Power Tools, Mowers etc. |
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12-01-2025, 09:25 AM | #27 | |||
HSV - I just ate one!
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Just about every retail chain does this, be it their own brand equipment or parts & equipment that have, say a "Bunnings only" model.
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12-01-2025, 09:37 AM | #28 | |||
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Found Mitre10 is also going down the same pathway, they are slowly disappearing. The problem with mega stores is the quality of their hardware materials, a lot of it is rubbish. |
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12-01-2025, 10:02 AM | #29 | |||
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12-01-2025, 10:19 AM | #30 | |||
HSV - I just ate one!
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Replacing commercial grade fittings with domestic grade parts that look the same means: 1: you get to charge more 2: you get to go back a few months later on a repeat job to replace that part again after its failed 3: nobody ever notices becausethe invoicing frequency gets lost in beuracracy 4: rarely, if ever is it specified or enforced that replacement parts are to be to a certain specification. Dont ask me how I know!
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