Thread: Bunnings to open specialty tool chain

Originally Posted by Chris Parks

I made the point about Blackwoods earlier in the thread. They are an online disaster area because you have to log in to access pricing and that does not fly in this day and age. I don't use their web site any more, if I want to know a price or stock availability I pick up the phone and call the local branch.

...And then get it from McMaster-Carr.

The interesting thing about Blackwood's is they are reducing stock at my local store. The guys and girls at the branch are great, but "sorry we no longer stock those linishing belts here, we will get them up for you". So I now have to predict how many belts I am likely to use in advance. I don't have a choice as no one else stocks them. We are fast becoming the US model of buying everything online.
Rgds,
Crocy.

I log into Blackwoods to get stock and prices - easy peezy. I find it quicker than using a phone and listening to elevator music.

Originally Posted by Greg Q

...And then get it from McMaster-Carr.

Not as easy as it sounds, the postage for small stuff is off the scale and I am told it is necessary to have an account with them. I had to buy some springs for my latest project and finding them in Oz defeated me so I had a US forum member organise it for me. Even he had problems because he did not have an account and I think it was done via a third party who did have an account. I may have the details a bit out of whack but that was the ghist of it. He was very kind and took a lot of trouble for four springs.

Originally Posted by woodPixel

-- Bunnings is, fundamentally, a property business. Selling hardware is a secondary bonus. This simply adds cash flow. Their entire business has been strategically focused on getting the best land at the best prices near DIY and home market users.... NOT green-fields and industrial end users.

-- The likes of Sydneytools, et al, are already deeply entrenched into the delivery of professional level tools into the pro market. They may be competed against, of course, but simply popping opening a store and calling oneself "Bunnings Pro" isn't going to cut it. (i.e. Will the audience migrate? OR, does Bunnings simply dilute itself of its own market?)

I think we are all fixated on the very tiny segment of Bunnings overall business which is represented by quality hand and power tools. (and we all should know that if you are buying tools from the green shed -- I'd call it Big Green Retail Giant, but BGRG doesn't have same the "name recognition" as the BORG -- Big Orange Retail Giant

Where do tradies go to get that extra 1 or 2 sheets of ply / MDF / Gyprock / etc or the extra can of paint that they suddenly find they need to complete the job? In the main it's to their nearest Bunnings. Waiting for their normal supplier means returning to the job the day after next or the next week, while going to Bunnings means the job can be completed today.

In terms of retail hardware, Bunnings has a market share of around 20%,
Their market share rises to over 50% when the retail hardware segment is restricted to the DIY crowd.
But in terms of the quality power tools sold by Sydney Tools et al, Bunnings' market share is probably less than 1% of the tools sold in store. To date the Big Green Shed hasn't really stocked the tools that quality retailers like Sydney Tools and Gasweld stock. So there's lots of room for a "Bunnings Tool Division" to grow.


If I were Bunnings' senior management -- I'm not -- my plan would be to offer a similar range of tools as is currently offered by shops like Northern Abrasives (located in Brookvale) and similar small scale tool retailers (i.e. those high end tools (Hitachi, Bosch, DeWalt, Makita, Milwaukee, and even Festool -- yes Tooltechnic's Festool), plus quality hand tools made by Gear Wrench, Wera, et al. My business plan would be to knock the little guys out with superior customer service -- remember that with more than 50% of the DIY market, Bunnings' pockets are deep enough to sustain years of small losses as they deliver on their "beat the competitor's price by 10%". Once most of the small guys are gone, then Bunnings can concentrate on trying to knock over the "big guys" like Sydney Tools and Total Tools. But they may get into ACCC trouble if they do attempt to so, so a comfortable oligopoly with Sydney Tools, Total Tools, Gasweld might be Bunnings' end game.

I don't think that a "Bunnings Tool Division" would bother itself with marketing tools from niche hand tool makers like Lie Nielsen or Veritas. But woodworking tool retailers like Carbatec and Timbecon could feel the heat should a "Bunnings Tool Division" start to target their machinery market.

Just an addendum to the tangent from a page back. I contacted Milwaukee's Australian site re the 23ga pin nailer. Their response was they do not know if/when it will be released here and had no information.

I am wondering if it is safe to order from o/seas given the 12v batteries should be standard...

Originally Posted by Cgcc

I am wondering if it is safe to order [a 23 ga pin nailer] from o/seas given the 12v batteries should be standard...

The batteries will be standard, but your likely problem will be the battery charger.
A European retailer (and possibly a UK retailer like Axminster) will have a compatible battery charger, but if you are looking at ordering from a retailer in the US or Canada, the smarts in a 120 v, 60 hz charger probably mean that the charger won't work on AUS's 240V, 50Hz supply.

Originally Posted by ian

I don't think that a "Bunnings Tool Division" would bother itself with marketing tools from niche hand tool makers like Lie Nielsen or Veritas. But woodworking tool retailers like Carbatec and Timbecon could feel the heat should a "Bunnings Tool Division" start to target their machinery market.

I would be surprised if they impacted the likes of Carbatec etc, I think Bunnings idea of specialised tools will still be very mainstream and tradie related like Total Tools etc sell.
Hobbyists type tools and machinery would be too low a turnover for them and take up valuable floor space

Originally Posted by Cgcc

Just an addendum to the tangent from a page back. I contacted Milwaukee's Australian site re the 23ga pin nailer. Their response was they do not know if/when it will be released here and had no information.

I am wondering if it is safe to order from o/seas given the 12v batteries should be standard...

Further to what Ian says above, if you buy the Milwaukee pin nailer and charger from UK, continental Europe or Hong Kong sources then voltage is not an issue - just change the electrical plug. No idea on availability or prices.

Originally Posted by Cgcc

I am wondering if it is safe to order from o/seas given the 12v batteries should be standard...

Depends whether they are imperial or metric volts.

If you have Milwaukee 12v tools already then you shouldn’t need to buy a charger when you purchase the pin nailer as it’s a skin (I presume), and your 12v batteries should fit it.

"so a comfortable oligopoly with Sydney Tools, Total Tools, Gasweld might be Bunnings' end game."

Adelaide Tools was previously Gasweld in S.A. but they broke the relationship a few years back (I suspect due to Franchise Fees) and became Adelaide Tools.
For those who like a bit of history, they were a family owned business known as Electric Power Tool Services or EPTS. They then did a deal with Gasweld to become EPTS Gasweld in S.A. Talking to staff, leaving Gasweld did allow them to offer some different products and make their own decisions to suit the local market and fairly quickly. Now I worry that the new model will create something that makes more money for Wesfarmers, but does not necessarily suit the trades and hobbyists as well as we would like.

Bauldy

EPTS were owned by Fintware. Flintware ( Peach Family) purchased EPTS in the eighties, They became part of the Gasweld buying group and ended the relationship due to constraints, then became Adelaide tools. Due to retirement sold to Bunnings. the story is, nothing will change only time will tell.

Re Milwaukee, I bought a 12v torch and battery at a farm clearing sale in Alberta.
Works Fine here in Oz with the charger and battery’s from my drill.
H.