Prime Day Pressure Hits Bunnings Price Beat Guarantee
Several Bunnings stores are promoting special ultra-low prices on its connected home range, as online sales (e.g. Amazon Prime Day) pressurise the hardware giant’s price beat guarantee.
Whilst many retailers offer price matching, Amazon Prime Day (and rival retailers’ push to match them) has seemingly put Bunnings’ 10% price beat policy in a bind.
Bunnings has a near monopoly in the hardware space, however, the Wesfarmers’ owned retailer has continued to push into consumer electronics – further taking on JB Hi-Fi, Harvey Norman, Kogan.com and Amazon Australia.
Published on community coupon site OzBargain yesterday, a Bunnings store in South Australia was spotted selling a Google Home Hub for $99 – down from RRP $147.
Some users claim the discount is not available at all Bunnings stores.
The discount comes as eBay competes with Amazon Prime Day via its eBay Plus sale, with Google Home Hubs selling for $99.
Whilst Bunnings’ price beat policy stipulates any online sales have to take into account the cost of delivery, eBay Plus and Amazon Prime members both benefit from free shipping.
To some, the hardware giant is obliged to not only drop its price to match, but give an additional discount.
The ubiquity of Bunnings and its dominance means price beating likely has little impact on its hardware business as the few competitors that remain struggle to offer the same prices to begin with.
The consumer electronics space where it’s now seeking entrance has similar ubiquitous big box competitors like JB Hi-Fi and Harvey Norman (both of whom offer price matching but not price beating).
With the backing of Wesfarmers and its sizeable contribution to its parent company’s revenue, Bunnings is positioned to absorb any initial losses, but it still remains to be seen how successful the move into a sector with stronger and more available competition will prove for the retailer.