Who is going to buy Masters?

[bob10]

Bunnings may mop up some Masters disasters | The New Daily (http://thenewdaily.com.au/money/2016/01/18/bunnings-may-mop-masters-disasters/?utm_source=SilverpopMailing&utm_medium=email&utm_campaign=20160119%20The%20New%20Daily%20(1)&utm_content=&spMailingID=24492849&spUserID=MTIxODgyNjMyMTEwS0&spJobID=722245307&spReportId=NzIyMjQ1MzA3S0)

[landy]

I'm not so sure that Bunnings would do that. Many Masters stores are within sight of a Bunnings, and arguably failed because they misjudged the foothold Bunnings have. Why would Bunnings go to the expense of buying a stores that cant compeat with what they already have. Surly it's within Bunnings best interests to ensure Masters don't open as competition in any form.

[Judo]

I'm not so sure that Bunnings would do that. Many Masters stores are within sight of a Bunnings, and arguably failed because they misjudged the foothold Bunnings have. Why would Bunnings go to the expense of buying a stores that cant compeat with what they already have. Surly it's within Bunnings best interests to ensure Masters don't open as competition in any form.


I read an article a few months back predicting this and the idea was bunnings would just buy the ones that aren't near existing bunnings stores. Which is partly why they'd only buy a few I guess. I assume they would fully convert the buildings to bunnings stores. They would just take the real estate.

[Homestar]

If a buyer can't be found, one thing is for sure and that is that Bunnings will hike it's prices even further. Not sure if anyone noticed but prices surged at our local Bunnings after the family owned hardware stores were forced out of buisness in this area. They dropped again once Masters came to town, but I bet they are licking their lips now waiting for the kill. Bunnings share price increased 3% on the news Masters was being wrapped up.

Bunnings EBIT is running at 11% at the moment, up to 4 times more than some other large retailers, and twice what parent company Coles is doing, so they are already tearing a new one in the publics collective rear, wait a while and watch what happens...

[bob10]

Bunnings are circling, for sure.

The official position at the ACCC is it cannot okay any moves that will substantially lessen competition and it would not be inclined to let Bunnings swallow the lot.

Things are different with individual stores in locations without a Bunnings nearby ? those they could buy without competition concerns.

A really interesting situation would emerge if there was no other buyer and Masters was facing closure. Then the thinking within the ACCC is that a closure of Masters would represent a significant lessening of competition and Bunnings could be then able to add most of the 63 Masters stores to its existing 324 outlets.

With Bunnings currently adding 20 new stores to its portfolio every year, the hardware group would really spread its tentacles across the Australian home improvement market and presumably have greater power to raise prices. It could also put the squeeze on remaining independent operators

[squizzyhunter]

Dam, goodbye cheap paint.
As the article stated Masters has done a good job yet failed to just get people through the door. And yes why the hell if they try branch into white goods... Jack of all, masters of none

[Eevo]

i like bunnings
they made diy friendly

[Homestar]

i like bunnings
they made diy friendly

I like Bunnings too, I also like Masters. My problem with this is that I don't think Bunnings will care if we like them or not - they are there to maximise shareholders returns which I think they will take the opportunity to do.

The ACCC is a toothless tiger IMO and because Bunnings will only want to buy certain stores, they will get it across the line. As previously mentioned a lot of Masters stores are within spitting distance of a Bunnings store anyway - my local one is just next door, they aren't going to want all the stores.

[mudmouse]

I'll have one of their buildings - it'd make a great shed!

I do recall having a chat with a worker at Bunnings. She said some of their guys work part time at Masters during summer, because it's air conditioned, and at Bunnings during winter. She said the feedback is that Bunnings is more oriented to help people, where Masters is more of a business... I think Bunnings got a head start that could never be overcome.

[DoubleChevron]

They put a massive masters store in ballarat. I've been up there a few times. It's more expensive than bunnings, seems to have less range and the quality is even worse. Every single time I've left without buying anything and driven down to bunnings wondering why I was stupid enough to go out to masters in the first place ..... again.

Masters, don't do "cheap", don't do even "average" quality and don't have a huge range. I don't know who there target market was, but it's business model was no good from day one. You can't be more expensive than the opposition and have less range and ****tier quality. It just won't work.

seeya,
shane L.

[Aaron IIA]

Not sure if anyone noticed but prices surged at our local Bunnings after the family owned hardware stores were forced out of buisness in this area.

I thought Bunnings had consistent prices accross all their stores, or at least accross an entire city. The whole city sees the same television advertisements showing the same everyday low prices.

Aaron

[Homestar]

I thought Bunnings had consistent prices accross all their stores, or at least accross an entire city. The whole city sees the same television advertisements showing the same everyday low prices.

Aaron

Specuals and some high volume items yes, but store pricing is different from location to location, the same as Coles stores differ in price depending on where you live. Interestingly the prices are usually higher in the poorer areas and cheaper in the richer suburbs.

There's a reason they ask for your postcode on the website - it's not just so they can point you towards your nearest store.

[Homestar]

I do recall having a chat with a worker at Bunnings. She said some of their guys work part time at Masters during summer, because it's air conditioned, and at Bunnings during winter. She said the feedback is that Bunnings is more oriented to help people, where Masters is more of a business... I think Bunnings got a head start that could never be overcome.

Yes, they are too entrenched in the market to be easily competed against. Service wise I found Masters to be better when our local store opened, but that didn't last long. Bunnings have upped their game a lot since Masters came to town - I think overall Bunnings has friendlier staff.


They put a massive masters store in ballarat. I've been up there a few times. It's more expensive than bunnings, seems to have less range and the quality is even worse. Every single time I've left without buying anything and driven down to bunnings wondering why I was stupid enough to go out to masters in the first place ..... again.

Masters, don't do "cheap", don't do even "average" quality and don't have a huge range. I don't know who there target market was, but it's business model was no good from day one. You can't be more expensive than the opposition and have less range and ****tier quality. It just won't work.

seeya,
shane L.

Despite me liking Masters as well as Bunnings, I too have always wondered how they can have such huge stores and have nothing in them I want. I like going to Masters as it's more open - and less people :p. Some of their stuff is priced ok but I don't think either of these stores is what you'd call cheap by any stretch.

The business model was based on appealing to Women - they must have got that at least a bit right as SWMBO will happily go to Masters but refuses point blank to step foot in a Bunnings store. I think the biggest problem with that business model is that (without being sexist) men do far more home improvement stuff than women do.

[landy]

The business model was based on appealing to Women - they must have got that at least a bit right as SWMBO will happily go to Masters but refuses point blank to step foot in a Bunnings store. I think the biggest problem with that business model is that (without being sexist) men do far more home improvement stuff than women do.

I don't think that's sexist at all, in fact I'd say it's rather obvious. I was watching Ross Greenwood on the today show how said its model was aimed at getting more woman in. If that's true then surely it's a flawed plan. In a similar vain, I make military model kits. Girls on the whole just don't buy plastic models or similar hobbies. Of cause some do and some are very good. But if men are my prime costumer Way would I aim my hobby shop to woman?

[VladTepes]

I'll have one of their buildings - it'd make a great shed!


One sold recently for $40 Million. Not a cheap shed, but plenty of Landy parking outside for mates !!!!!

[scarry]

One of the main things was Masters didn't just stick to hardware,they went into white goods where there is little margin and heaps of competitors.

Hardware products have a big margin,particularly,as others have said,since the little hardwares have been driven to the wall.

There are a few Mitre ten hardwares around here,they could be interested some of the Masters stores.

[bob10]

One of the main things was Masters didn't just stick to hardware,they went into white goods where there is little margin and heaps of competitors.

Hardware products have a big margin,particularly,as others have said,since the little hardwares have been driven to the wall.

There are a few Mitre ten hardwares around here,they could be interested some of the Masters stores.

Down at Jeays hardware yesterday, [ Mitre 10] Old Mr jeays thinks Mitre 10 should not waste money on Masters, but take on Bunnings in service, and pricing.

[incisor]

bunnings service and price in the same sentence?


i find them abysmal compared to the local masters

not to mention the range of gear.

but seems i am the odd one out...

[bob10]

bunnings service and price in the same sentence?


i find them abysmal compared to the local masters

not to mention the range of gear.

but seems i am the odd one out...

Hence the Mitre 10 advantage. Old Mr Jeays, and his sons , have built up a good reputation at Sandgate, especially with service, especially with local tradesmen. It's the old scratch my back' I'll scratch yours, arrangement. Also, in the same vein, the garden centre at Clontarf, Snook st. is streets ahead of Bunnings. Support your local little guy.

[incisor]

Support your local little guy.

the big guys killed all the little guys including my mates business...

it appears a banker who is common to one of the big fellows pulled his line of credit with out warning and we are talking millions...

receivers were brought in, very prematurely it now appears

and there is going to be a rather large legal battle

nuff said....


altough i hear the local mob at narangba are doing great stuff

[bob10]

the big guys killed all the little guys including my mates business...

it appears a banker who is common to one of the big fellows pulled his line of credit with out warning and we are talking millions...

receivers were brought in, very prematurely it now appears

and there is going to be a rather large legal battle

nuff said....


altough i hear the local mob at narangba are doing great stuff

Sounds a bit like Dick Smith, although they shot themselves in the foot, before taking millions for themselves. A well run small business, supported by the local community, can't really go wrong. As long as they don't go too deep in debt.

[scarry]

Hence the Mitre 10 advantage. Old Mr Jeays, and his sons , have built up a good reputation at Sandgate, especially with service, especially with local tradesmen. It's the old scratch my back' I'll scratch yours, arrangement. Also, in the same vein, the garden centre at Clontarf, Snook st. is streets ahead of Bunnings. Support your local little guy.

The local Mitre 10 near here is good as well.
They seem to always have what you are looking for.
The guy who runs the place has had hardwares for 40yrs and knows what people want,their service is excellent as well.

There isn't a bunnings very close,so he has picked position well.

The only good thing about Bunnings is we now use their oxy and acetylene.Same price as BOC,no rental,you pay a deposit on the bottle.
And there are more Bunnings around than BOC agents and the Bunnings stores are open every day.:)

[Homestar]

The only good thing about Bunnings is we now use their oxy and acetylene.Same price as BOC,no rental,you pay a deposit on the bottle.
And there are more Bunnings around than BOC agents and the Bunnings stores are open every day.:)

Cool, didn't know that. How much is the deposit?

[scarry]

Cool, didn't know that. How much is the deposit?

Deposit is $200,they only have D size,they are called Coregas.

The bottles are actually 10% bigger than BOC,so they say.But physically they look the same size.

We had the pressure relief on an oxy bottle go off in one of the vans last week,hopefully that won't happen again..They changed it over,which was good.

i believe not all stores have coregas,but we haven't found a store that doesn't have it..

[DiscoMick]

Why would you air-condition a hardware store or stock furnishings, as Masters did? I think they misjudged the market and raised their costs too high.
If I'm after hardware I'm probably dirty, sweaty, wearing my muddy boots and grumpy because I didn't plan ahead and have had to stop work to go buy something. I don't want air-con and I'm not interested in furniture.
It would be interesting if the Mitre 10 group took over Masters, cut their costs and made them a real competitor to Bunnings.


Sent from my GT-P5210 using AULRO mobile app

[weeds]

Hence the Mitre 10 advantage. Old Mr Jeays, and his sons , have built up a good reputation at Sandgate, especially with service, especially with local tradesmen. It's the old scratch my back' I'll scratch yours, arrangement. Also, in the same vein, the garden centre at Clontarf, Snook st. is streets ahead of Bunnings. Support your local little guy.


I use Jeays when I can I.e. Support the little guy.......but wouldn't go as far as saying their service is good.

[Grappler]

Here is an article by journalist David Elias on the history of Bunnings from a book by Jenny Mills.



"Brothers build foundations for success
February 28, 2004

Had brothers Robert and Arthur Bunning stuck to their plans, theirs might have become a household name in America rather than Australia.

As members of an East London artisan family used to travelling overseas to find work, they sailed into Fremantle on the SS Elderslie in June 1886 intending to visit a sister and brother-in-law before sailing on to California.

They were builders with skills in carpentry and stone masonry, and after deciding to stay in Australia they won a contract to build additions to the Fremantle lunatic asylum. This was followed by more work building a stone hospital and post office at Roebourne, 1600 kilometres north of Perth.

Robert Bunning, who was 27 when he arrived, remained in control of the business for 50 years until his death in 1936. Arthur, 23, was regarded as a finer craftsman but after a bad fall from a horse in 1888 his injuries precluded him from taking business decisions. However, he remained with the family business and died in 1929.

During Western Australia's gold boom in the 1890s, Bunning Brothers became timber merchants, brick makers and building suppliers but in the early 1900s it concentrated on the development and expansion of sawmills and timber yards in the south-west of the state. Bunning Brothers Limited was incorporated in April 1907. It survived a fire in 1914, the Great War and the Depression, and also pioneered the use of motor transport to haul timber.

Robert's sons Joe, Charles and Tom took over the business after their father's death and enlarged it. They went back to making bricks and during the Second World War, Bunning Brothers teamed with the rival Perth group Millars at the request of the federal Ministry of Munitions. They became shipbuilders and built the small "snake" boats used by the famous Z force to land on Japanese-controlled territory in Asia.

Bunning Bros Pty Ltd rode the postwar housing boom to become the largest logging operators in Australia. The brothers became leading lights in the Association of Sawmillers and Timber Merchants during the 1950s and Charles Bunning, as president of the Employers Federation, championed the cause of greater national and international investment in West Australian industry.

The company went public as Bunning Timber Holdings in 1952 but continued to trade as Bunning Bros. In the mid-1950s Bunning Bros took advantage of the WA building boom and diversified into hardware initially to serve the trade. But on seeing the way new-style supermarkets were selling food, the company decided it could retail hardware the same way.

It opened its first retail store in West Perth in 1961 followed by the Bunnings' Super Centre at Albany in 1962. The company was set on track for an explosion that would make Bunnings market leaders in Australia and New Zealand.

The second generation of the Bunning family continued to run the company through the 1970s and introduced the third generation, cousins Bob and Gavin Bunning, to the board in 1974. The cousins remained until Wesfarmers, a public company formed out of the old West Australian farmers co-operative, won control in 1992.

- David Elias

Source: The Timber People, a History of Bunnings Limited, Jenny Mills, Bunnings, 1986."

[bob10]

I use Jeays when I can I.e. Support the little guy.......but wouldn't go as far as saying their service is good.

As with anything, it's a matter of opinion. I haven't had any problems with them, but perhaps I've been lucky.

[squizzyhunter]

I don't want air-con and I'm not interested in furniture.
It would be interesting if the Mitre 10 group took over Masters, cut their costs and made them a real competitor to Bunnings.


Sent from my GT-P5210 using AULRO mobile app


I second this! Fantastic idea!!!!:BigThumb:

[Judo]

The differing service levels is interesting. When Masters opened near us, SWMBO and I went quite a few times, but we gave up. The service was terrible and they never had what we wanted. Every time we just ended up driving down the road to Bunnings, so we figured why keep going to both stores when we can just go to Bunnings!

We both agreed, the stores were "nicer" inside with air con and all, but it was kind of pointless going for the air con when they didn't have anything we wanted.

[DiscoMick]

It appears to me to be a typical example of a company (Woolworths) trying to start up in an industry it didn't understand.
Bunnings, on the other hand, was an existing successful company which was taken over and expanded.

[slug_burner]

I found that there was similar pricing with some items cheaper in Masters while others cheaper in Bunnings. I was doing some plastic plumbing and found that the 25mm blue stripe fittings were cheaper at Masters and I got all my plastic blue stripe fittings from them. On other occasions on other items there was not much difference.

I found Masters home brand Kobalt to be acceptable on their hand tools, I don't work on the tools for my living, I do like to buy quality but can't always justify the big name brands. Put it this way, I don't have much Snap-On but do have Sidchrome, Stahlwille, Dowidat, Gedore, some Kincrome some Swedish tools as well. I try and stay away from the Elephant and Tiger brands out of the new Industrial powerhouse countries.

However the loser is the public if Masters go, competition is the only thing that checks prices from getting out of hand.

[bob10]

Bunnings tricks of the trade

Bunnings unleashed: this is life after Masters | The New Daily (http://thenewdaily.com.au/money/2016/01/21/bunnings-high-prices-life-masters/?utm_source=SilverpopMailing&utm_medium=email&utm_campaign=20160122%20The%20New%20Daily%20(1)&utm_content=&spMailingID=24521681&spUserID=MTIxODgyNjMyMTEwS0&spJobID=722836421&spReportId=NzIyODM2NDIxS0)

[bob10]

How Bunnings turns the screws on customers | The New Daily (http://thenewdaily.com.au/news/2016/05/11/bunnings-turns-screws-home-renovators/)

[bob10]

Bunnings heading for massive Brexit wipeout | The New Daily (http://thenewdaily.com.au/money/2016/06/28/bunnings-heading-for-brexit-wipeout/?utm_source=Responsys&utm_medium=email&utm_campaign=20160702_TND)