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30th September 2013, 06:15 PM #1
How do Bunnings Set their Prices - Irwin Clamps
I went to Bunnings the other day and they had a 4 pack of the small 150mm Irwin Quick Grip Clamps for $29 something, I picked up a pack from the isle and went looking for the main clamp section. Individually they are around $17, a 2 pack was $27 something. So the difference between a 2 & 4 Pack was roughly $2 If you bough 4 individually that be almost $70 more than double…… go figure what is the real value?
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30th September 2013, 06:28 PM #2
Look carefully, you may find that they are different grades, I got caught out that way, some are made of thicker steel.
Cliff.
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30th September 2013, 06:31 PM #3
It obviously costs more to pack them than make them.
Hugh
Enough is enough, more than enough is too much.
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30th September 2013, 06:35 PM #4
It is a fiction that the retail price has any relationship to the actual product cost.
Essentially, you want your retail price to be as high as possible for maximum profit, yet low enough to discourage competition entering the market. Add market position and brand identity, wholesaler margins, price pressure from large retail chains (that's not necessarily so they can sell it cheaper, just so they get a bigger margin) and the extent that they like to use sales promotions to drive sales when they haven't met their quarterly earnings, and eventually you'll be able to work out what they make the thing for. To borrow an American expression, this is typically 'pennies in the dollar'
TL;DR - Always pick 'em up when they are on sale.
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