07 June 2008

Bunnings - Designed to Close you down

If you're a small hardware or paint shop owner, you have your livelihood to fear.

With the opening of a new Bunnings store in Melbourne, up on the notice board was a list of all the competing small businesses.

The goal of the store was to close down ALL of the competition.

As each one of the small competing stores closed down, they would be stuck from the Managers list.

One way to achieve this is to severely discount a line of products that a competing store offers. The small business is then unable to compete, ultimately ending in foreclosure.

Another tactic used was that suppliers would sell the paint to the small business paint shop at a rate the Bunnings would retail the product, thus making the small business unable to compete.

The principles of which are documented in a video on YouTube Is Wal Mart Good for America.

No comments: