Ryobi signing exclusivity deal with Bunnings/Bunnings reducing range in power tools ?

[reuelt]

At Bunnings yesterday. Saw a "CLEARANCE" sign for GMC redeye 12 Speed Pedestral Drill press for only $98.

Soon there may be no more GMC+Triton at Bunnings because RYOBI says no to that Competitor.

[TJC]

Bunnings still has GMC in stock, but how much and what variety differs from store to store. I'm a wood newbie, getting back into the game after 19 years, and I wanted some cheap tools to fit out the workshop (cough, garage, cough)... I rang the Fountain Gate Bunnings and yes, they still had GMC stock but they were clearing it out, and wouldn't be re-stocking.

So I went shopping.

Picked up a router, circular saw, belt sander, RO sander, hobby kit (engraver, cordless screwdriver, etc), compound mitre saw, jigsaw and even a band saw... for roughly $550.

Oh, and don't start about how I wasted my dollars buying GMC... right now, I'm rubbish. As I get better, so will my tools.

[Howdya do that]

Bunnings Dubbo had their grand opening on Saturday and they have GMC, Makita, Dewalt, Triton etc.
I cant see why they would put all this into a new store if they are trying to remove them from their range

[Dean]

All I can say is that if Ryobi is clever enough to come up with this scheme and make it work, more power to them. You may or may not like Ryobi tools, but if you are the latter, the choice is easy, just dont buy them and go to Trade Tools or Glenfords or whatever and buy whatever brand tool you like.

Part of the deal is that Ryobi will train Bunnings employees in proper and correct power tool use and selection. The program will familiarise Bunnings staff of many power tools and their use so that information can be *correctly* delivered to the purchaser, which in many cases is not the case currently with some bunnings staff delivering bad and incorrect advice. Of course, there will probably be a bit of a trend for the staff to recommend the Ryobi lines as these they will be mostly familiar with through the staff training rollout, but again, the way I see it, if the competitors to Ryobi cannot come up with something equally as good to match, then Ryobi have aced them. Its all a big game of Survivor... outlast, outplay, and whatever that third saying is

Ultimately, we have the choice of whether to buy Ryobi tools or not, or whether to shop at the Big B or not. No one is forcing you to buy any tool or shop anywhere if you do not want to. Yes I know, if there are no other options argument etc etc... but if you feel that strongly, then you will find a way around anything.

ALso, int he ACCC docs there are clauses that say Bunnings can supply and sell any brand of tool, even in direct competition to Ryobi, so doesnt sound liek the agreement is totally binding. In fact, the next few paragraphs state the agreement is not even contractual and can be ceased by either party at any time without penalty etc etc. There is a big risk in this for Ryobi too as I see it. They will be investing a good deal of $$ into it, and in todays market, sales are never guaranteed.

Just my 2c

[damian]

I bought a ryobi cordless drill years ago, 14V. Awful, worse than ozito or gmc. I don't even look at their stuff anymore. Trouble is there is a perception in the home market that they have built. A lot of people will buy the stuff. That's bunnings market also, casual home users who don't know any better.

I bought some 600 mm drawer runners form an old fashioned hardware this week. $6.70. Bunnings have them for $9.50.

I shop at Bunnings because if I need it now I've got a slightly bettter cahnce of it being on the shelf than my local harware. The Thrifty link down the road was great once, but the bloke sold it on and we've had 2 hopeless owners in a row. They just don't carry what I want to buy.

I have a simple approach. I examine the options, decide what I want, then find the best price. Bunnings aren't going to effect that in any meaningful way while the internet exists.

They are an option. Options are good. Don't like that option, buy elsewhere and your beloved local businesses will stay viable.

[Howdya do that]

I bought some 600 mm drawer runners form an old fashioned hardware this week. $6.70. Bunnings have them for $9.50.

Very good point. I noticed that they were selling steel posts (not even Waratah) for $16.95. You would buy a Waratah post from any rural reseller at no more than $9.

[Dean]

Very good point. I noticed that they were selling steel posts (not even Waratah) for $16.95. You would buy a Waratah post from any rural reseller at no more than $9.

Now come on, Lowest prices are just the beginning! didn't you know?

[Big Shed]

I bought some 600 mm drawer runners form an old fashioned hardware this week. $6.70. Bunnings have them for $9.50.

My son is buidling his kitchen at present and bought 8 sets of 500mm Howard Silver drawer runners at the Big B at $8 each set. When he installed the first set he wasn't happy with how they worked, very clunky. I recommended he give Halliday Hardware a ring, expected them to be about half that price. He finished up buying 8 sets of Ferrari drawer runners at $2.75 a set inc GST. Better quality, much lower price!

Bunnings sell the kitchen door hinges at between 3 and 4 times the price of Halliday Hardware.

So I guess, they can afford to give 10% off every now and again

As for the Ryobi deal, I would be very careful if I was the MD of Ryobi Aust, putting all your eggs in one basket has never been good business practice. After a couple of years of wall to wall Ryobi at Bunnings, there wouldn't be many other hardware places selling/stocking Ryobi. Then when the Big B dumps you, as the did with Triton/GMC, where does that leave Ryobi?

[Dean]

My son is buidling his kitchen at present and bought 8 sets of 500mm Howard Silver drawer runners at the Big B at $8 each set. When he installed the first set he wasn't happy with how they worked, very clunky. I recommended he give Halliday Hardware a ring, expected them to be about half that price. He finished up buying 8 sets of Ferrari drawer runners at $2.75 a set inc GST. Better quality, much lower price!

Bunnings sell the kitchen door hinges at between 3 and 4 times the price of Halliday Hardware.

So I guess, they can afford to give 10% off every now and again

As for the Ryobi deal, I would be very careful if I was the MD of Ryobi Aust, putting all your eggs in one basket has never been good business practice. After a couple of years of wall to wall Ryobi at Bunnings, there wouldn't be many other hardware places selling/stocking Ryobi. Then when the Big B dumps you, as the did with Triton/GMC, where does that leave Ryobi?

Yep thats the risk they are taking! Of course some big success stories come from big risks, but also some big failures Time will tell I guess.

[Big Shed]

I'd still rather have 10 customers each taking 10% of my turnover, than have 1 customer taking 100% of my turnover.

Not only will it eventually end in tears, in the mean time the Big B can basically dictate the terms to Ryobi.

[Vernonv]

I'd still rather have 10 customers each taking 10% of my turnover, than have 1 customer taking 100% of my turnover.

Even if the 10 customers are only providing you 50% of the turnover that the 1 customer could be providing?

Ryobi certainly aren't doing this for the "fun" of it, they are expecting to profit handsomely from it, otherwise it would be pointless.

Personally I put the current crop of Ryobi gear in the same league as GMC and other such brands and would generally prefer to buy better quality than that. I'm not really concerned about Big B limiting their power tool range to Ryobi as I purchase elsewhere .... and the nearest Big B is a good 2.5 hour round trip away.

[Big Shed]

Even if the 10 customers are only providing you 50% of the turnover that the 1 customer could be providing?

Ryobi certainly aren't doing this for the "fun" of it, they are expecting to profit handsomely from it, otherwise it would be pointless.

That would very much depend on what margin I could expect to make out of the 10 customers as against 1 customer. So, to answer your question, that depends!

Don't forget that Bunnings aren't doing this for the fun of it either and they would expect to get rock bottom prices, as well as extra incentives re advertising (you don't think the Big B pays for their own brochures, do you?) On top of that, Bunnings stores in general don't do their own ordering, this is left to the reps of the companies supplying them, so it would be quite staff intensive.

Personally I put the current crop of Ryobi gear in the same league as GMC and other such brands and would generally prefer to buy better quality than that. I'm not really concerned about Big B limiting their power tool range to Ryobi as I purchase elsewhere .... and the nearest Big B is a good 2.5 hour round trip away

I think you're being unkind to GMC here
At least GMC put a decent warranty on their products.

[Vernonv]

I think you're being unkind to GMC here
At least GMC put a decent warranty on their products.

Yes that is very true.

To be honest I would probably buy GMC over Ryobi, going by my last Ryobi purchase (crap Ryobi circular saw - replaced with a Makita). Whereas the GMC tools that I do own (cement mixer, biscuit joiner), all work to my expectations of them.

[montiee]

I don't think it's going to be ryobi exclusive. What I heard was that Bunnings just has to many variations per power tool and they are just cutting back to a smaller set of choices.

I'm not sure why it's a problem for them but I guess after X years in the market they have enough data to know what sells and what doesn't and aren't stocking it "all" and are trying to maximise profit by concentrating on bulk rather than choice. It's a pity because I liked the wide range they had. Nothing pisses me off more than walking into a hardware store and they have 2 brands of drill and a limited subset at that of those brands. I might as well go to kmart. It's one of the things that annoys me about my local mitre 10 (ignoring the stupid prices, no wonder they can't sell ????).

Time to move over to online purchases. Someone in Hong Kong needs to open up a power tools website like DX extreme but for power tools & iinclude shipping in the price since it costs bugger all from there to post stuff out.

Frankly aussie prices in power tools are ridiculous anyway for anything decent. I'm happy to import. Never had much luck with warranties anyway. Most stuff dies outside of warranty period.

[Ashore]

The ryobi bunnings exclusive deal comes into effect in september AFAIN