Sneaky trick Bunnings uses to keep prices low
It’s the dominant player in the fiercely competitive hardware sector, but new reports have shone a light on the sneaky tactics Bunnings uses to secure the lowest prices.
The devious move, dubbed ‘white labelling’ gets popular brands to make exclusive products that are slightly different for Bunnings, compared to those sold at other stores. These makes it harder to compare the two and work out which is cheapest. This also ensures the hardware retailer isn’t caught out by its price match guarantee.
E-commerce entrepreneur Ruslan Kogan cricised the tactic in an interview with News.com.au, stating, “It’s about getting a manufacturer to make a slightly different product for you, and as a result the customer can’t say ‘hey, are you going to price match this?’ because the retailer can say ‘that’s not the same product, our product is different”
“It’s a strategy that's been around for a long time, but it’s unsustainable because people will realise they’ve been misled.”
Bunnings managing director, Michael Schneider, hit back, telling News.com.au, “Our team members are trained and encouraged to apply our price guarantee whenever it’s needed. We encourage our team to use a common-sense approach and err in favour of the customer when it comes to matching similar or same products.
“We aim to ensure customers understand our price policy and price guarantee through in-store explanations, online and through our advertising. We go to extensive lengths every day to genuinely deliver lowest prices to customers and we have comprehensive business processes and procedures operating behind the scenes to back this up.”
What do you make of these tactics? Do you believe they are underhanded? Or is Bunnings well within its rights, and is it up to shoppers to be cautious?
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