Will Bunnings really ‘beat it by 10 per cent’? | Four Corners

Key Concepts:

• Price Beat Guarantee
• House Brand/Private Label
• Trademark Ownership
• Bunnings (Australian Hardware Retailer)
• Psycho (Ladder Brand - Bunnings House Brand)

Price Beat Guarantee Investigation

The video investigates whether a competitor's claim to beat a competitor's price on a stocked item by 10% holds true. The specific competitor mentioned is "Bunnings," and the item in question is a ladder.

The Ladder Inquiry

The video creator visits a competing hardware store and asks about the price of a specific ladder. The employee states that they do not stock that particular brand of ladder.

House Brand Revelation

The employee clarifies that the ladder brand, "Psycho," is exclusively available at Bunnings. The video creator reveals that "Psycho" is a Bunnings house brand, also known as a private label.

Trademark Ownership and Exclusivity

The video emphasizes that the "Psycho" ladder is not only manufactured exclusively for Bunnings, but Bunnings also owns the trademark for the brand. This means that no other retailer can legally sell the "Psycho" ladder.

Implications for Price Beat Guarantee

The video highlights that because the "Psycho" ladder is a Bunnings house brand and trademarked by Bunnings, it is impossible for any other retailer to stock the exact same product. This effectively makes it impossible for a competitor to fulfill a price beat guarantee on this specific item, as there is no comparable product available elsewhere.

Notable Quotes:

• Employee: "We don't actually stock that brand. We can get a similar one."
• Employee: "I think you can only get that at Bunnings."

Conclusion

The video demonstrates a potential loophole in price beat guarantees when dealing with house brands. By owning the trademark and having exclusive manufacturing rights, Bunnings ensures that its house brand products cannot be directly compared to products at other retailers, thus circumventing the possibility of a competitor undercutting their price on those specific items. The video concludes that the claim of beating a competitor's price by 10% may not be applicable in cases where the product is a house brand with exclusive trademark ownership.