A closer look at the paint industry will reveal a battle between Wesfarmers’ Bunnings hardware group and the Woolworths-Lowe’s Masters joint venture. This battle may not bother most on a daily basis, but when these two giants are battling for a share of the $3 billion paint industry, its bound to make some noise. We are witnessing it escalate as things heat up.
Bunnings is the defending power currently sitting in the dominant position at the top. However, Masters have just launched a new marketing campaign, “Australia, you’ve been paying too much for paint” and are attacking back by discounting high-volume products. Matt Tyson, the new boss in charge of repositioning the struggling Masters brand, is leading the battle. To find out how you can benefit on home improvement products by being in the middle of this price war, continue reading.
As you may be aware of prior to Matt Tyson’s entrance to the group in his new managing position, electrical cables were sold that did not provide the level of quality that they should have. As a result, the brand has been involved in one of the most complicated product recalls in Australian history, due to electrical cables being recalled that were installed in over 40,000 homes around Oz. As a result, Mr Tyson will no doubt be keeping a close eye on quality control amongst everything else within his new role.
The recall costs have the potential to amount to $80 million with Masters and other hardware companies within the Woolies-Lowe’s joint venture accounting for 40% of the bill.
To try and gain more market share, Masters has now begun to expand its range of products and cut its prices, also with the intention of increasing sales. Masters announced the paint price drop on entry level paint that some will know as rental “bond-back” paint on September 26th in conjunction with their new campaign: “Australia, you’ve been paying too much for paint.”
To give you an idea of what the new pricing will be, they announced their four litre tins of Pascol “Ready to Go” paint will be $20. The paint is produced by Wattyl in two colours, Cotton White and Antique Cream. Bunnings’ entry level paint is supplied by the brand Spring, which is produced by Dulux and you have the choice of colour mixing in-store. However, the paint from Bunnings for the same size four litre tins was $33.50 before Masters dropped their prices. So Bunnings has followed suit by reducing its prices to $17.50 a tin.
If you are looking for a cheaper indoor paint, Bunnings have their white 4L interior paint provided by Spring, on sale for $11.50, as opposed to Masters who have their Ceiling white 4L paint provided by Pascol for $12.
So currently on entry level paint Bunnings is winning on price. However, Masters have said they will be bring more to the table, but have not disclosed any details, but my guess is that there will be price drops on a range of other high volume products.
So the price drop is great for customers, especially regular DIY specialists, because if you have the time to shop around between the two stores, you will find some great prices on paint and other products. For example, both stores sell a seven piece outdoor setting and gas powered pizza oven, Bunnings had their outdoor setting priced at $5 cheaper than Masters, a total of $125. Whereas Master’s pizza oven was $1 cheaper than Bunnings at $197.
Other garden orientated products also appear to have been caught up in the price war, such as the Bosch 18V cordless grass tripper which Bunnings has reduced $188 to $100.
Another popular outdoor living product which a number of you may be considering buying at this point of the year is a BBQ. If you’re looking for a basic coal burning BBQ, Bunnings have their most affordable Jumbuck Coal BBQ on sale for $48.90 currently. However, if you head over to Masters, you will get a very similar BBQ with a shorter stand (ideal for tables) for only $20. Even if you were to include shipping fees of $9.95, Masters still works out cheaper.
You may be looking for something to entertain the kids in the garden whilst your enjoying your BBQ. Both stores have a kids seesaw for sale. Bunnings 360 degree rotating seesaw is $69 but with Masters the same will cost you $24 less at just $45.
As you can see, the paint campaign has started the price war and is supported by Masters new slogan. So if you are looking to get your hands on anything from light bulbs to garden furniture, be sure to check both websites to see which retailer has the best offers on. Spending an extra 10 minutes doing a quick search online could save you hundreds off your next trip to one of these stores.