Rockem Sockem

Anyone seen the construction on the corner of Springvale Road and Cheltenham Road?  Looks to be a brand new Masters, directly across from a major Bunnings store.

Talk about taking it to your competition.  An interesting game to play, not sure who the winner is in the area.  Certainly not either store, and not even the locals.  A game without winners is like playing chess with a sledgehammer.

rockem-sockem

20 Responses

  1. Where have you been Stu most Bunnings stores have Masters store opposite.

    • In SE Melbourne where I have been, this hasn’t been the case until now.

      I don’t understand the logic, which is why I commented on it. Surprised to hear how ‘normal’ this is, and to be honest, I’m disappointed.

      This would be like Samsung building phone/tablet stores right next to Apple stores (or not even that, unless they were actually selling Apple products as well), or a new petrol station company building them next door to Woolworths petrol (and matching price), or whatever the product, building next to another company selling the same product.

      It is just stupid.

      About the only group it works for is car companies, because they are all selling different brands, and there is a genuine point of difference, or fast food outlets, for the same reason.

  2. In Ellenbrook WA we have a Masters store with a Bunnings currently under constaruction right next door.

    • Makes for a funny twist. Either they are both getting the same (bad?) advise, or you wonder if there is any collusion? Or, they are taking the game and their (still superior) clout to return fire on Masters.

  3. Same in Box Hill. They’re literally side by side. When I stopped in a couple of months ago the Bunnings was busy as usual, but the Masters was relatively quiet. And certainly quieter than the Masters in Northland. Not sure where the nearest Bunnings is there, but it’s at least not next door as in Box Hill.

  4. there building one in pakenham across the road from buntings

  5. Some marketers believe this to be a good strategy. Something along the lines of creating a shopping hub where people will go because they know there will be choices and competition etc. An effective example would be furniture sellers or restaurants. There are many examples where competitors are grouped together in shopping hubs. Assuming there is a market to continue to be grown here in Oz, it could be win-win with Masters pushing the basically monopolistic Bunnings up a notch and us customers benefiting from the improvements and greater choice. I feel for the Dank’s, Home’s and Mitre 10’s of the world. They might be the real losers in this dog fight.

    • I certainly see how that works in some industries. In the new car market, having the dealers side by side does create a precinct. With a Holden dealer next to a Toyota, next to a Mazda that works. You don’t see a new Holden dealer next to a new Holden dealer however.

      A food court is also an excellent example. A Mexican outlet next to an Indian, a Japanese, a KFC, a salad bar, a sandwich place. Creates a great area to attract customers. But there is not two Mexican outlets, both selling tacos.

      So I don’t understand how it is beneficial to have two places selling effectively the same stock next to each other, where each is attempting to be a one-stop-shop with the entire range of stock. If one specialised in automotive, and the other in gardening, sure. One in bathrooms, and the other in kitchens. One in metal tools (welders etc), one in wood. But they are not – this is a direct head-to-head, not a symbiotic relationship.

      • I don’t see it as black and white as that. Have a look for the subtleties. Macca’s sell chicken burgers for example. Subaru’s have all wheel drive medium cars, Toyota 2 wheel drive medium cars etc. and all coexist around the place. Master’s supposedly have customer service!

        This fosters competition and it could be seen as clever strategy that Masters is tapping in to the established mindshare of Bunnings customers regarding location, purchasing habits etc. Don’t get me wrong, I am not supporting it I am simply trying to theorise as to why Master’s chose such an approach. Of course if I had all the answers I would be rich!! Time will tell with this experiment!

        • That is a fair point – I guess we will all have to suck and see. I have seen Bunnings lifting its customer service game a bit, so perhaps something is working. Mainly noticed as I hadn’t shopped there in a while (having a much closer Masters), but there was something specific I needed, and there was a noticeable change. Perhaps just down to the individual, but that is also the benefit of competition.

          Just so long as we don’t see some of the colourful characters that Lowes in the US attracts!!!

  6. This is our local Bunnings and for years we have been putting up with crap service (if you could find any one to help) Masters seem to have staff to help at the moment in their stores, but I say damn them both for killing off the local hardware stores and flooding the country with imported rubbish.

    • Hi Stuart
      Like Robbo, This has been my local store as well and yes, I too have had to put up with years of substandard service as well.
      Funnily enough, my son started working for Masters, when the Dandenong store opened, so I’ve had an opportunity to compare both, given I’ve spent most of my time frequenting the Keysborough Bunnings, predominately due to it’s convenient location.
      Masters provides much better service than Bunnings and Keysborough still hasn’t lifted it’s game, despite the obvious coming competition.
      I think there is enough of a difference in their respective ranges to at least make it worthwhile, despite sharing everyone else’s misgivings about the demise of the smaller local hardware stores, (Damn, I really miss Arkana Timber & Hardware in Dandenong) 😦

  7. Here’s something new on the market. http://www.praziusa.com/beamcutter.html

    • That is rather interesting!

  8. Don’t worry about Home Hardware they are already under the Woolies umbrella.

  9. The questions of winners and losers are such simple ones to answer. The winners are Wesfarmers and Woolworths. The losers will be the local small hardware stores within 12 months, and then the local community when these smaller places are no longer around.

    • I was already working on the assumption that the small hardware shops of my youth had already been completely screwed over by the monoliths. At least if they are building on top of each other, those that are still around (if any) are not having another dropped on their doorstep, any worse than they already have.

  10. They build next to each other to capture as much of the market as they can.

    It isn’t unusual to have a Coles and Woolworths in the same complex, each have a dedicated customer base which will support one or the other. If one of them were missing the customers would go to the other as it is more convenient. There must be many examples where the store runs at a loss just to create the presence. Our local shopping centre has a good large Woolworths and a smaller crappy Coles. Woolworths must get at least 95% of the trade but the Coles retains its presence.

    I have even seen a situation where there were two Woolworths in the same small complex after Woolworths took over Franklins.

    These companies are so large they can easily take a financial hit on a few stores here and there. Given they are both playing the same gave it most likely evens itself out in the end.

  11. Queensland is the same… Bunnings with a Masters over the road and a Woolworths in between. ….both stores are patronised well with Masters staff having a small edge in service…

  12. […]  Rockem Sockem  Thought it was a stupid strategy, and today’s news is clear evidence why. […]

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