The Age: Masters and Bunnings price war takes on a new hue
Forget about the bread wars as it looks like the paint wars are about to heat up.
The Bunnings response to Masters' new paint price cuts and the cable recall debacle highlights some risks.
Masters launched the paint price drop for entry level paint that is known as rental "bond-back" paint on September 26 along with an "Australia, you've been paying too much paint" advertising campaign.
It set a $20 price for four-litre tins for Pascol "Ready to Go" paint that is produced by Wattyl in two popular pre-tinted colours, Cotton White and Antique Cream.
Bunnings' entry-level paint brand is Spring. It is produced by Dulux, and can be colour-mixed in store.
Woolies contends that Bunnings was selling four-litre cans of Spring paint at $33.50 before the move by Masters, and that by October 3 it had cut the price to $17.50. The Bunnings camp says its entry level price for the Spring range was already below $20 in July, at $18.90.
With Masters at $20 and Bunnings now at $17.50, "bond-back" paint prices are anchored, however, and Masters will widen the front. It has not disclosed details, but a series of long-term price drops for other high-volume products are planned.
Masters is believed to have recorded a significant interior paint sales bounce since it cut prices. The direct financial outcome depends on how profit margins are affected
Looks like competition is resulting not only in cheap prices at Master's but lower prices in Bunnings.
Perfect! Was thinking about giving the house a lick of paint in the next few weeks…
I did see the Master's commercials, the colour selection was pretty poor…looks like Bunnings has taken care of that!