Will Bunnings Raise Costs When/if Masters Exits?

Penalty boxer on 21/10/2015 - 11:03

http://www.news.com.au/finance/business/were-all-in-trouble-…
http://www.smh.com.au/business/retail/woolworths-lowes-weigh…

"Woolworths is expected to pull the plug on its $2.2 billion foray into the home-improvement market if joint venture partner Lowe's decides to exercise an option to sell its $1.1 billion stake.
Analysts believe Woolworths is unlikely to continue to run the loss-making Masters chain single-handedly if Lowe's exercises its put option and forces Woolworths to buy its 33 per cent stake for more than $800 million.
"If Lowe's wants out Woolies will want out as well," one analyst said."

What do you guys think? Should we all do a big OzB shop to keep Masters afloat to stop Bunnings jacking up prices? Or does Masters deserve its death as they were never really competitive on pricing to begin with?

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Comments

    • smpantsonfire on 22/10/2015 - 19:21
      +1

      Went to Masters to price beat. Only got a price match. I shouldn't have to educate them on their policies.

      Never shopped there again.

      • serpserpserp on 23/10/2015 - 11:48

        Pretty sure their policy would state that the price beat is not applicable in all cases.

        • smpantsonfire on 23/10/2015 - 13:42
          -1

          In this case,I was price matching garden sleepers. Ask I'd think that would count.

          Anyway I complained to HO and was told to come down for a $50 gift card. Still never went back to get it.

        • caspochek on 26/10/2015 - 18:28
          +1

          @smpantsonfire:

          I saved a fair bit price beating bunnings at masters on garden sleepers a couple of years ago. Just over $10ea for 200mmx50mmx3m.
          Mastesr in Caroline Springs I find pretty good, but as someone said earlier, their click & collect is woeful.

  • gstfree on 22/10/2015 - 18:50

    What's the strike price of the long put? Lowes is so smart to enter into the option to sell.

  • EmployeeEmCKay @ Bunnings Warehouse on 22/10/2015 - 20:55
    +7

    I work for Bunnings and am terribly proud of it. I can't speak for all of them but at the store I work at the team is great, we care about each other and our customers, we have an amazing boss who doesn't hesitate to collect trolleys if that's what's needed and we have air con in summer, heaters in winter and a very cool polished concrete floor that detracts greatly from that dark warehouse feeling that some of the others stores have.

    What's my honest opinion of masters? I love their children's lighting section and their displays and my son thinks their rocket shaped trolleys are awesome but as for their 'associates' not so great.

    I hope I get the chance to greet some of my fellow Ozbargainers one day (yep, that's my job - love me or hate me)

    • smpantsonfire on 23/10/2015 - 13:43

      Which Bunning?

      • EmployeeEmCKay @ Bunnings Warehouse on 25/10/2015 - 19:44
        +1

        Won't say directly but it is one of the newer stores in western Sydney.

        • Lichen6420 on 18/01/2016 - 17:59
          +4

          Only reason you have polished floors and aircon/heating is because of Masters. Just remember that :)

    • regenade on 23/10/2015 - 14:06
      +2

      Why no coupons like Masters shows you guys know you are the leaders and don't care to touch the low end of the market , even when selling price is 3 x Buying price, too much profiteering is not good. We don't just need awesome service, we need super low and at par US prices. I know we are never getting it, hate Wesfarmers , one of the most dodgy Oz conglomerate.

      • EmployeeEmCKay @ Bunnings Warehouse on 25/10/2015 - 19:40

        We match and beat Masters coupons by 10%. Next time they have one bring it in and we will honour it. How much better can we do?

        • eug on 25/10/2015 - 20:48
          +2

          That'd be more useful if both stores sold more of the same brands. :)
          Is that a general rule that'll work in any Bunnings, or just yours?
          If I see a Bosch drill at Masters and have a 10% off coupon, I just have to go to Bunnings and you guys will beat the discounted price? By how much?

        • victorheaven on 26/10/2015 - 09:39

          Not really… most of the bunnings I go to only match the pre-coupon price..

          So your price beat guarantee is rarely applicable.

    • robbyjones on 23/10/2015 - 16:27
      +1

      Really great to hear someone be proud of where they work, much more often people bag out where they work.

    • lilkid28 on 23/10/2015 - 22:35

      You should learn from TA and negotiate us some deals man…

  • [Deactivated] on 22/10/2015 - 20:57

    bunnings had got a freat location choices throughout but i think masters too little too late and as above posters said you would be driving past a bunnings to get to masters…..

    the only good thing masters has done is created a serious or almost serious competitor and with the 10% discounts on every now and then it doe pull at the purse strings to want to buy buy buy

  • cantstanzya on 22/10/2015 - 21:46

    Masters is cheaper imho. I hope they don't go under. Bunnings have better range but you can save some serious money at masters. Also their trade card is 5% off everything where at Bunnings it's a lottery what percentage discount you will get if any.

    • BangkokBreakfast on 23/10/2015 - 12:55
      +1

      It's actually a tiered system based off how much you spend. People who have an ABN and come to Bunnings once a month shouldn't get the same discount as someone who spends 10k a week.

      In Bunnings eyes:
      Big spender tradies = high discount tier
      Tightarse tradies = smallest possible discount.

      • cantstanzya on 23/10/2015 - 13:09

        Any details on max discount?

  • immortalbjr on 22/10/2015 - 22:53
    +9

    Today I wanted to research a new outdoor kitchen so I went to both Masters and Bunnings.

    Masters staff in general seem lazy, even today walking around the store the staff will look the opposite way or seem to just distance themselves from you incase you might want to ask them a question. The guy in the kitchen area really felt like he didnt want to be answering a single question and just tried to book me in for an appointment. The outdoor "kitchen" I want to build is honestly so simple and basic all I needed was a few answers to buy and build myself but he just wasn't interested in the slightest.

    Went to Bunnings and the guy was great, was more than happy to spend 10 mins answering questions and pointing me in the right direction, i'll be buying from them as I know they arent going to be any dearer anyway.

    I own a small business and the "trade" card at Masters used to require you to sign up to their credit card rubbish which I was never interested in, why would I sign up for credit when at Bunnings I can just hand over my ABN and get a cash card with a discount. Although last time I purchased something from Masters I told the guy I wasnt interested in their credit card and he laughed and said no one else was either so they've changed it to be similar to bunnings. May be a little too late however.

    As far as pricing goes on anything ive checked the prices have never been cheaper than bunnings, they will match it but thats about it. Bunnings also have a better range, friendlier staff and the trade card so 95% of my purchases have been through them.

    I wanted to like Masters (competition is only good for the consumer) but they really didnt seem to help themselves in many aspects. I dont see Masters lasting much longer.

    • eug on 24/10/2015 - 00:36

      My Masters is different. The staff are more attentive and ready to help than the Bunnings down the road.
      I do find the selection at Bunnings better though. But I still check to see if I can get my stuff at Masters as it's better if Bunnings had a competitor.

      • immortalbjr on 24/10/2015 - 10:25

        Yeah course, every store is going to be different.

        Ive still wandered into my local a few times for something different and every time ive seen the same overweight miserable looking manager loitering around the service desk at the entry. I've had to deal with her once with an enquiry and she was difficult, it would be no surprise the staff would hate her and hence make working there alot harder.

    • FatBlanket on 24/10/2015 - 18:48
      +2

      I went to a Woolworths near me and as I was walking through the front door somebody farted. It was really quite unpleasant. Needless to say I won't be shopping at Woolworths anymore. As for Bunnings and Masters, no comment.

  • [Deactivated] on 22/10/2015 - 23:20

    Sorry I've given Masters a shot a few times but Bunnings has a much better range. Masters have the basics but never that one little thing you are looking for.

  • No ONE on 22/10/2015 - 23:55

    To be honest, I didn't even know Masters even exist until a year ago. Few months ago when I visited one of its store, I found it a well presented store. Sad thing is store location has not been well implemented compared to Bunnings.

  • Sira on 23/10/2015 - 05:52

    From the general feel of reading through the comments Bunnings has a better overall customer satisfaction. With this in mind, what if Masters does fold? What happens to those locations, they could make a perfect acquisition for a new contender, or do they get demolished and replaced by a raft of smaller non hardware stores?

    We've had hardware stores fold and reduce locations but not on this scale.

  • snajper on 23/10/2015 - 06:26
    +5

    Regardless whether Woolworths pulls the plug, masters did as all good. Thanks to them now at all Bunning stores you get greeted you when you enter and staff are no longer hiding when you need assistance.

    • immortalbjr on 23/10/2015 - 19:41

      I noticed that at my local Bunnings also, service was as terrible as Masters is right now until they opened up down the road.

      Unfortunately however Masters bosses seemed to have forgot to tell their staff to be as friendly when they opened their doors.

  • cowiie on 23/10/2015 - 08:39
    +1

    Masters is closer to me by 4 mins, not much of a difference. In nearly all cases, i have seen that Bunnings prices are cheaper than masters. For example kerosene 1L bottles.

    Price beat policy at masters isn't bad but depends on the staff. There was one staff who just looked at the price on my phone and beat it by 10%. Others googled the Bunnings product, priced matched it and that was it. Has to remind them about the extra 10% off.

    • tdw on 24/10/2015 - 01:56

      Price beat policy at masters isn't bad but depends on the staff

      definitely. i wanted to buy a dyson hand vac from masters ($299) that myer had for $225. opened up online chat. they wouldn't even price match it. pity, i got good service at the masters store i went to initially to enquire about it and had every intention to buy it from them

  • team teri on 23/10/2015 - 09:36

    Both Bunnings and Masters are appalling. I am currently shopping around for Laminate Flooring. Bunnings matched a recent Masters catalogue special, so price/m2 was identical and I had a close look at both products.

    Bunnings: pretty sturdy, 8mm. The boards clicked together nicely leaving a level surface and no gap. But: no information on formaldehyde emissions. Not on the pack, not in the pack, no manufacturer listed. Product imported by Bunnings, so no one to call. Australian Standards mandate that the emissions class is shown. So Bunnings imports and sells products that don't comply with Australian standards and probably are unhealthy. (Even cheap Chinese manufactureres would not pass on the opportunity to show a low emissions class if they could).

    Masters: Emissions class shown on the pack, E1. Not great but ok. But then: no surface hardness shown on the label. Staff member: "those cheap laminates don't show that". Well, the Bunnings one did. I tried to click a few boards together, it simply did not work, the tongue and groove were so inaccurate that the boards either had gaps on one end or were so tight they did stayed up on an angle. Staff member: what do you expect of those cheap laminates? Well, I would expect that they are fit for purpose… But then, assuming she was correct when she said "we've sold heaps of these and none have been returned", what does that say about the average Australian consumer and their knowledge of the ACL?

    Shame on both Bunnings and Masters. I'll visit a flooring specialist next.

    • cjmac on 24/10/2015 - 12:01
      +1

      what does that say about the average Australian consumer and their knowledge of the ACL?

      A lot of companies seem to count on that lack of knowledge.

  • yacman on 23/10/2015 - 10:35
    +3

    This is surprising!

    In my experience Masters hire ex-plumbers, electricians, etc. to work in their respective areas so they are more specialized and able to assist you to a greater degree. If anything they almost hand around that little bit too much but overall are very helpful and transparent if they think you can get the item your after elsewhere or cheaper.

    So I find Master's to be way better than Bunnings in customer service, I don't have an issue with their locations either, but for some reason I just can't put my finger on, they just don't seem on the level of Bunnings which is unfortunate.

    • Hirolol on 23/10/2015 - 11:00

      Bunnings hire ex tradies too mate
      Nothing new!!

    • serpserpserp on 23/10/2015 - 11:53

      Why would a tradie want to work for masters or Bunnings? Surely they'd make a lot more money being in the building game.

      Unless they are over 40 and their back/knees are giving out…

      • jackary on 23/10/2015 - 15:02
        +2

        You've answered your own question

      • Cluster on 23/10/2015 - 16:01

        At my local Bunnings the employees largely fit into two age brackets: under 25 females and over 50 males.

        • serpserpserp on 23/10/2015 - 16:15

          Weird, I only see younger women at the checkout/greeters, the rest are mothers or older looking ladies.

        • Charity on 24/10/2015 - 19:38
          -1

          @serpserpserp:true that. It's usually jail bait or old hags. Next to no twenty-somethings

  • Hirolol on 23/10/2015 - 10:59

    I have a masters 3 mins from me
    Bunnings about 10mins
    I was going to masters but the staff are just not friendly
    Nobody says hi or asks if you need any help

  • rmamila on 23/10/2015 - 11:58
    +5

    In my opinion we should do our best to keep Masters in the market. I really hate the times we only had Bunnings and paid 10 times more for some items when there was no competition at all.

    Damn I bought 5 meters of 1mm clear Vinyl table cloths for $150 last night. If I knew this I would have driven bit further and gone to Masters.

  • EnALup on 23/10/2015 - 12:50

    Well to save it, can we find any good deals in Masters for drill machines? I was thinking to buy ozitto which has replacement warranty and works for normal household works.

  • mickey888 on 23/10/2015 - 18:59
    +1

    Well, I think it's a huge loss for us all when Bunnings are winning.

    Without Masters, there is not much competitive stores which can price match against Bunnings.
    I am working 8-4 weekday, driving ordinary car, so having online store like Masters, able to transport bigger items for me to renovate my house, AND with promotion code discount and paying with 5% discount egiftcard, really make a differences.
    Yes, picking up on weekend is possible with click and collect but you know there is stock available for you, because they pick the stock for you and you are ready to go. You don't have to go there, look for it, only to know, no stock available and you have to go another store.

    But, I have to say, Bunnings' customer services is very good and friendly. I don't think they are doing it for the commission because they are giving you good honest opinions. I am not a tradesperson, so grateful for giving valuable advice to me. And like most of you said, Bunnings store are in most convenient locations compare to Masters. Also, Prices at Bunnings are going up.

    None the less, I still prefer masters. This is only just my personal opinion. No offence to anyone.

  • tdw on 24/10/2015 - 01:50

    i don't think i've ever bought a thing from Bunnings except getting two keys cut. and i only ever buy from Masters if i have at least a 10% off coupon

  • [Deactivated] on 24/10/2015 - 13:24

    Bunnings is 5 minutes away bus. Masters is 25 minutes away and I would have to catch two buses to get there (no car).

    • [Deactivated] on 19/01/2016 - 17:24

      And how are you going to carry a 35 kg bad of cement back on the bus?

  • Exec-Matrix on 24/10/2015 - 13:26

    It does really piss me off though thay masters has a monopoly in hardware and we have to bow down to whatever prices they implement. Is there a law on this?

  • knk on 24/10/2015 - 16:26

    Masters have a better solution of automotive / assorted fasteners. Expensive compared to someone like Metric Men though.

    I've got one about the same distance as bunnings and tend to use bunnings. No real reason I don't think I ever have been unable to find something at masters aside from a cheap set of door knobs.

  • [Deactivated] on 24/10/2015 - 16:57

    Masters is crap unfortunately.. So hold on tight people because the mast on the ship is going to die.

  • ChillBro on 24/10/2015 - 17:01

    I was treated like a criminal when i asked whether masters would price match another store then was bombarded with contradictory reasons why they couldn't.

    Regardless, i would rather more competition than fewer.

  • justinh93 on 24/10/2015 - 20:03
    +1

    I believe looking at Officeworks gives a pretty good indication of where prices will go if Masters leave….

    • Lichen6420 on 18/01/2016 - 18:17

      At least office works has competitors some of their categories, computers, electrical and furniture etc…

      Wont be able to say the same for Bunnings, consumers are going to suffer !

  • [Deactivated] on 24/10/2015 - 20:33
    +4

    Bunnings will create more exclusive deals with suppliers and then brag about how if you can find a better price they'll beat it.

    Can't beat your price if you're the only one with the product, douche bags.

  • ahly92 on 24/10/2015 - 22:48

    No doubt Costco will buy the warehouses and convert them to a Costco… At least we will have increased comp in the grocery sector (and prob petrol)

    • Lichen6420 on 18/01/2016 - 18:17

      Well that would be insanely awesome

  • garage sale on 25/10/2015 - 09:14
    +3

    Master have many exclusives due to Lowes like stainless steel trowels , cheaper than bunnings. Infrared bbq (charbroil) …. bunnings don't have then and masters is 1/3 price of bbq galore for an infra red bbq, garden power tools you can parts for on eBay from the USA, etc.

    The USA hardware market is more competitive than ours, and Lowes seeded masters with a few exclusives items that beat bunnings hands down on quality but at a comparable price… but not enough of those items, and they haven't made consumers aware of those items. With most things made in China, if Lowes here were serious, they could inflict some real pain to bunnings, but that would mean leveraging more of the USA lines and have them sent straight to australia. Loews is MUCH larger than bunnings, and has lots more purchasing power at a global level (that can buy for USA and Australia). Might be woolworth thats that problem, and if it was just Lowes then we might see bunnings sweat. Being tied to Woolworth would be like asking wife to do something.

    I hope Masters stays around, they have better quality than bunnings at similar prices, but it is challenge breaking people buying habits … like explaining to my son that Maccas has become very expensive and that hungry jacks stunner meal is better value ….. now he eats hungry jacks.

  • [Deactivated] on 25/10/2015 - 09:46
    -2

    Why all the sad faces? Masters is crap and their staff and return & exchange policies are to blame. I have returned many items at Bunnings hassle free. At Masters they flatly refused to replace my microwave with a new unit (even after showing them documentation from Panasonic Australia clearly stating that was their warranty policy). So Oz Bargainers I am waiting for the Masters closing down sale so I can laugh in the faces of the a##holes at the South Morang VIC store when they lose their jobs.

  • Minotaur on 25/10/2015 - 18:19
    +1

    It'd be nice if someone else besides Bunnings could carry the Ryobi One+ range of tools. Lowest Price Guarantee is irrelevant if you're the only stockist of something.
    Officeworks do the same thing too… a lot of their printers for example are identical to one bought elsewhere but the box has a slightly different model number, meaning they no longer have to price match.

    • berger on 26/10/2015 - 17:07

      They did an exclusive deal around 8-9 years ago, Ryobi will only ever be sold an Bunnings, the idea behind it is to avoid price matching. When I worked in an independent hardware store, I done a deal to stock Ryobi, sent the order off, and it was rejected the next day as the Bunnings/Ryobi deal was done

      Makita, kincrome, karcher, etc all alter model numbers to differ from everyone else.

      I saw a billboard on the Monash freeway a few weeks ago, for Fantastic Furniture.. Offering a 100% price promise…. They sell their own brand, so NO ONE else can offer a better price…

  • Serapis on 26/10/2015 - 01:00

    Doubt Woolworths will pull the plug, they've invested too much into it. At worse they should be selling at a loss.

    • berger on 26/10/2015 - 17:02

      It's financially better to pull the plug, if you bleed money so much and over such a long time they costs are greater than an instant wind up.

  • sleet on 26/10/2015 - 09:02

    Personal experience, bunnings seem to be more helpful in offering assistance, even though usually I like to be left alone when shopping.

    Masters carry a different range as well which I like. I just shop between the two.

  • Miami Mall Alien on 26/10/2015 - 14:24

    In WA the paint on the majority of Masters outlets isn't even dry and all the ones I've been to are literally ghost towns inside.

    If Bunnings takes over them they'll get a whole new chain of Bunnings stores that just need a new, green coat of paint and a different sign.

    If that happens I can see Bunnings and Coles branches merging into a Walmart-esque, all-in-one shopping center with all of your shopping needs under one roof.

    • berger on 26/10/2015 - 17:01

      Bunnings have said they will take over a percentage of stores, but I think around 15 of the total stores.

  • BoomTetrisForJeff on 26/10/2015 - 14:32

    i don't know why they built a masters opposite bunnings at a lot of locations just asking to lose money

    • eug on 26/10/2015 - 14:46

      To try and steal Bunnings customers, presumably.

    • berger on 26/10/2015 - 17:00

      Same reason Coles and Woolworths are so close to eachother

      Same reason good guys and Harvey Norman are so close together

      Direct competition!

  • pongie on 26/10/2015 - 15:56

    I was after a tin of Sikkens Cetol Filter 7 Plus 5L over the weekends. Went into masters and they only have the 1 tin in light oaks for $167. Stopped by Bunnings and there only have it in pine for $152. Pine is too light so I had to settle for light oaks in masters. Knowing that they won't price match because of the different colour code, I resorted to the 10% off coupon and did click & collect at masters.

  • Geekomatic on 26/10/2015 - 17:16

    I always get good service at Bunnings. True, they're sometimes under-staffed & I have to wait for someone to be free, but overall they answer mostly everything I ask.

    Went to our brand new Master's (mostly out of curiosity) & was trying to piece together a makeshift down-pipe for an outbuilding. No one around for aisle after aisle. I finally tracked a guy down near the appliances & he rang out for help in plumbing. Guy finally shows up & knows less than I do- lol. No one else there that he could suggest I speak with. "Ok then, ta!" —> off to Bunnings.

    That's my only experience with Masters

  • onlyletters on 27/10/2015 - 22:45

    You know whats stupid, most of the products on the masters website shows up that its not in-stock or only available in-store, if its available in-store then you'd think that it would be available for click and collect? nope, its just a shit system, god help masters.

  • tonsta on 16/11/2015 - 01:11
    +1

    without sounding like i have it in for Masters, but each time i go in there the customer service has been well below average, at the level of MSY computer guys… i put up with MSY because of the low prices… but Masters don't have that in there favor.

    last occasion asked a staff where i can find Staples for my staple gun…"I have no idea"… and pretty much left it at that.. not even a phone call, not even a "I'll ask someone who knows"… just the "I have no idea" and walked off to do what she needed to do. Service Fail.

  • sam-1966 on 18/01/2016 - 14:44

    Woolworths are dumping Masters.

    https://www.ozbargain.com.au/node/230741 (Mod: Replaced link with a relevant link - previous link was an iTunes app)

  • bryans on 18/01/2016 - 15:31

    Quickly offload your Masters gift cards!

  • bizi on 18/01/2016 - 21:45

    I wonder who will buy the cream of the Masters stores? I imagine some will be repurposed for other retail (JB Home?) and most may be closed and put up for lease.

    Are there any people here who work for Woomworths who have any clue?

    • xyzed on 18/01/2016 - 23:13

      Woolies don't know yet, all they know is they are going to get rid of it, whether someone buys, or they just shut the doors and pay out all the leases will be revealed if no one offers to buy.

      Personally I much preferred Masters. Stock and Pricing labels actually matched on the shelves, MUCH friendlier staff who talk to you than run from you (several Bunnings stores), but what was lacking for me was certain brands, and they foolishly used 909 and Wesco as their cheap and nasty stuff, and it was cheap and very nasty.

      I know Mitre10 and Home Hardware were looking at joining forces, but can they afford such locations - doubt it. I certainly hope someone does as Bunnings is already rather expensive on so many items (tad hard to price match, when it's not the same item - nice bit of marketing there!). Ryobi springs to mind, with even the crap Aussie Dollar I can still buy it in the USA, get it shipped here for 1/2 the price Bunnings charges for the One + kits.

      For me it'll be sad to see them go. I'll have to start lining up at sausage sizzles again!

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