Bunning's_Supply Chain problems- Give me your thoughts!

[jusdeb]

Very true .

[Lukec]

As a small medical centre pharmacy manager we have similar problems with the new wharehouse type establishments. They offer cut throat cheap prices (often less than our supposably equal wholesale price). Thus our customers are deserting us for these low service low cost suppliers, BUT still want us to have a full range and be on call for that one on one advice when they want it.However us and other small operaters are slowly but surely dwindling in profitabilty and longevity. I think Bunnings is on the otherside of this problem they have now wiped out nearly all of the small personal operaters and now they have the more or less monopoly, can reduce the service and slowly increase the prices as no one is there to compete anymore.

This is very true, our petrol stations are a prime example of a monopoly and now we are paying for it.

Our supermarkets are also heading the same way with "private label" products. Next time your in coles or woolworths, compare the number of coles or woolworths branded products. They are increasing on weekly basis and destroying the competition. Before we know it the Milk will be back to $6 for 3 litres as their will be no competition and the big chains will dictate to the dairy farmers and screw them down on price. Australian fruit and veg is also not in a good way.

My weekly order costs around $10 more to buy non coles or woolworths branded products, well worth it in my opinion. From an affordability stand point if you can atleast limit the number of coles or woolworths branded products, it keeps competitors products on the shelves.

sorry this gets under my skin as most people dont see it coming.

[jusdeb]

Woolworths are sneaky buggers with the home brand items . Used to be you had name brand and the stores generic brand , now you have Woolworths home brand and Woolworths Select home brand ...2 generics competing for the aussie dollar in 1 store.

Our Big W now has a optical dispensary , having trouble getting a Optometrist full time but it will happen and are thinking of opening a chemist in store also .

The petrol monopoly has backfired with the opening of an independant operator run by funny little Indian people who keep their prices just below that of the discounted fuel offered by the Supermarkets .

[TheChemist]

I see it and live it. My wife is very anti Coles and Woolies and only shops at the locally owned IGA store where we can and rarely buy non branded products. Sadley i think it is too late for Pharmaceuticals, the Generics got in early with cheap prices but now with Govt. rebates etc. soon they will be all thats economical once a drug goes off patent. Our other pet hate in supermarkets and IGA unfortunately is following in this one is where specials are all 2 or 3 for $ rather than a single discounted price. .. can of worms me thinks

[jusdeb]

I wish there was an answer to the problem . Sadly the masses ( me included ) have been lured to the cheap side at the expense of small businesses .

And now look where it has gotten us ? Paying more , getting less and not even a friendly smile as you enter the store .

[E Orix]

It is a problem when big companies force the small specialised companies out,once this happens mediocraty becomes the normal.
Specialised fishing shops struggle because the Super markets sell the bread and butter lines but won't stock the better quality more expensive but slower moving stock.
One of my tenants was a very successful hardware store then Bunnings arrived on the scene and I no longer have a tenant yet he was more often than not actually cheaper than Bunnings. You could also buy one or two items instead of being forced to buy a packet.
I guess its the times,if this other big hardware chain eventuates then Bunning will really have to get going.

[vettepilot_6]

Where I had our shop there was an IGA...the Centre came up for sale....Coles bought it....would not honour leases....then preceded to up rents till IGA left...now Coles has 3 supermarkets within 30klm radius against Woolies 2....Apparently its a game to the 2 biggest players....My wife and I try most times to shop the indepentants now.

[Diane]

Bunnings may have a competitor soon, a while back hubby heard on the business channel that Lowes the huge hardware store chain in the US has made some moves towards opening stores over here.

We have a large Bunnings at the local shopping centre and another one about 20 minutes drive away. We also had two local hardware shops that have closed since Bunnings opened. There is one Mitre 10 that seems to be hanging on.

[jusdeb]

WE have 3 Woolworths in Dubbo . Overkill

[natamambo]

Hey don't get me started on anti-competitive behaviour. 15c prints killed our business and 1000s of others like it, yet when it came to camera hardware we were usually equal to or cheaper than HN but there was no way we could convince Jo Public of that. Oh well, at least out of retail = weekends off and time to build new aviaries.....

And yes BB, Lowes + Woolworths = Masters hardware and they already have one in Melb and are building one directly across the road from our local Bunnings. Of course it remains Wesfarmers vs Woolies so it's not competition it's a continuation of existing market dominance.