Price vs Value: Why Matching Price Means Matching Offer

 

Same Price, Different Value

Introduction

In business, the idea of “price matching” often feels like an easy fix. If a competitor sets their coffee at $5, you do the same. If another law firm charges $300 per hour, you match it. The thinking goes: if the price is the same, customers will stay.

But here’s the catch, price is only one part of the equation. Customers don’t just see the number on the receipt; they experience the whole package. If your offer doesn’t actually match the competitor’s, then your “price match” isn’t really a match at all. It’s a shortcut that risks eroding trust and damaging your reputation.

This blog explores why businesses need to look beyond numbers when competing on price, with practical examples that highlight the difference between matching price and matching value.

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Coffee Example: Same Price, Different Cup

Picture two cafés on the same street. Both advertise coffee for $5. One café serves a regular-sized cup, while the other serves a noticeably smaller cup for the same price. On paper, both are “competing fairly.” But in reality, the smaller cup café isn’t matching the offer.

Customers may not complain the first time, but they will notice. And once they do, they won’t just question the coffee size, they’ll question the fairness of your business overall.

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Tea Example: Quality vs Cost

Now take tea. One café matches its competitor’s $5 tea price but cuts corners by using supermarket tea bags, while the competitor serves premium loose-leaf tea. To the customer, the price is the same but the quality difference is obvious.

In this case, the café has matched cost but not value. Customers who expect a quality tea-drinking experience will feel short-changed. Worse, they’ll start telling others about it. Word of mouth spreads fast, and what began as a strategy to keep customers may actually drive them away.

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Fish and Chips Example: Portion Size Matters

Think about your favourite fish and chip shop. Imagine one matches its competitor’s $9 price, but when you open the paper, you find fewer chips and smaller fish. Technically, both shops charge the same, but the customer’s perception of value is completely different.

Customers will always compare what they get, not just what they pay. A smaller portion may lower your costs, but it will also lower repeat business. People don’t just remember the price, they remember whether they left full and satisfied.

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Law Firm Example: Experience vs Hourly Rate

Professional services face the same challenge. A law firm may decide to match a competitor’s $300 hourly rate but assign a junior lawyer with one year of experience instead of a senior partner with two decades of expertise.

On paper, the rate is identical. But in practice, the value delivered is vastly different. Clients expect comparable service for a comparable price. When they discover they’re getting less for the same money, they don’t just lose faith in one lawyer, they lose faith in the entire firm.

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The Bigger Picture: Trust and Loyalty

The common thread in all these examples is simple: customers aren’t comparing price alone, they’re comparing value.

When businesses rely on price matching to boost profits without enhancing quality or value, they risk their current profits and customer base. Customers can see through that quickly. And once trust is lost, it’s almost impossible to regain.

The smarter approach is to recognise that value is multi-dimensional. It includes quality, service, expertise, reliability, and even the emotional reassurance that comes from choosing the right provider. Price matching without matching the offer ignores these dimensions and leaves your business vulnerable.

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Final Thoughts

Price matching might win by increasing the profits in the short term, but it won’t secure loyalty in the long term unless the offer also matches the expectation. Businesses that see opportunity increase prices to match with competitors risk creating dissatisfied customers and damaging their own reputation.

The lesson is clear: if you’re going to match the price, you must also match the offer. Otherwise, focus on differentiating your value instead of chasing numbers.

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As a business leader, ask yourself: Are we competing on price alone, or are we delivering a value proposition that truly stacks up?

If you’ve ever struggled with balancing price and value in your business, let’s talk. At Josty, we help businesses build strategies that strengthen both pricing and customer trust.
Empowering Growth, Securing Success.

Visit Josty.nz to learn more or get in touch today to explore how we can help your business compete on value, not just price.

Price vs Value: What Are You Really Paying For?

 

What Are You Really Paying For?

Introduction

We live in a world where price is often the first thing people see, the number we compare, and the lever we pull when making decisions. But ask yourself: What are you really paying for?

I was reminded of this today while getting my Warrant of Fitness (WOF). I could have booked elsewhere in town for slightly less, but that would’ve meant waiting one or two days. Instead, I chose to pay a little extra to have it done immediately. What I was really paying for wasn’t just a check on my car, it was also convenience and immediacy.

This small example highlights a bigger truth: price is not the same as value. Let’s explore why.

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Price Is Only Part of the Value Equation

Most of us have been trained to see price as the measure of worth. Cheaper equals better savings, right? Not always.

Price reflects only the upfront cost. Value, however, is everything you get in return. And sometimes, the value is hidden until you step back and ask, “What’s included? What problem is this actually solving for me?”

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A Sales Story: Why Higher Price Can Mean Higher Value

In my sales career, I often faced pushback on pricing. Clients would compare us against competitors and wonder why we were more expensive. On paper, their numbers looked sharper. But the reality? We weren’t selling the same thing at all.

Our solutions included far more than equipment:

• Design: Tailored to the unique needs of each client.

• Build & Programming: Systems crafted for seamless integration.

• Testing: Every solution was plug-and-play ready, reducing downtime.

• Quality Components: Only the best parts, guaranteeing longevity and reliability.

The competitor’s offer may have been cheaper at first glance. But clients who chose us weren’t just buying hardware, they were buying certainty, peace of mind, and time saved later.

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The Hidden Layers of Value

So, what are you really paying for? Often, it’s one or more of these layers:

1. Speed
   Sometimes, you’re paying for something to be done right away. Like my WOF experience, the faster option cost more, but the value was in getting my car back on the road without delay.

2. Expertise
   You’re also paying for the knowledge and skill behind a product or service. Expertise ensures fewer mistakes and better outcomes.

3. Reliability
   The cheapest option may look appealing, but how reliable is it? A reliable solution saves you from costly breakdowns or repeated purchases.

4. Experience
   This isn’t just about customer service it’s about reducing stress. A smooth, professional process can be worth more than a small saving.

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The Hidden Cost of “Cheap”

It’s easy to be drawn to the lowest number. But the cheapest option often comes with hidden costs:

• More time lost in waiting.

• Extra repairs or replacements later.

• Frustration from poor service.

• Missed opportunities because the job wasn’t done right the first time.

In other words, the price you see isn’t always the price you end up paying.

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Everyday Examples of Paying for More Than Price

• Flights: A budget airline may cost less, but add up baggage fees, lack of flexibility, and poor service suddenly, the “cheaper” flight isn’t so cheap.

• Technology: A bargain laptop may save money upfront but need replacing in two years, while a higher quality one lasts twice as long.

• Professional Services: A cut-rate consultant might deliver a report, but an experienced advisor gives insights, strategy, and implementation support.

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Asking the Right Question

So, when you’re making your next decision, don’t just ask, “How much does it cost?” Instead, ask:

• What am I really paying for?

• What is included in this price that I might not see at first glance?

• What will this save me in time, stress, or future expense?

When you shift your focus from price to value, you make smarter, longer-lasting choices.

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Final Thoughts

Price is simple to compare. But value? That requires thought. The truth is, you’re rarely just paying for the item or service itself. You’re paying for the expertise behind it, the reliability it offers, the convenience it brings, and the confidence that it will solve your problem the right way.

The next time you’re weighing up your options, resist the temptation to focus solely on the price tag. Instead, ask yourself: What am I really paying for? Because often, the cheapest option costs the most in the long run, while the right choice delivers the value where it matters to you.

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At Josty, we help businesses uncover and communicate their true value, so customers see more than just a price tag. If you’d like to explore how to position your business on value rather than cost, get in touch with us today.

Post written by Jason Jost

The Art of the Upsell: Sales Advisory for Hidden Revenue

The fastest path to business growth is often through your existing customers, not new ones. By taking a sales advisory approach, you can uncover hidden revenue through strategic upselling and cross-selling. This blog will explore why simple transactional selling fails and how frameworks like solution selling can generate long-term revenue.

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From "Is That All?" to Strategic Growth

For many businesses, sales is a simple transaction. You get an order, you fulfill it, and you ask, “is that all?” This approach is a missed opportunity. It closes the door on further value and leaves money on the table. Think of the difference between a simple transaction and McDonald’s famous "Would you like fries with that?" a small question that has generated billions in extra revenue. In the world of B2B sales, the opportunity runs even deeper.

I once got a call from a customer who needed a battery charger. Instead of just taking the order, I asked a few questions and discovered they didn’t just need a charger they needed a complete system, including a cabinet, breakers, batteries, and commissioning. What could have been a low-value sale became a full project because I took on a sales advisory role.

The key to upselling is not to push unnecessary extras, but to uncover and solve your customers' unmet needs.

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Why Upselling Matters for Business Growth

Acquiring new customers is expensive. It requires significant investment in marketing, lead generation, and long sales cycles. In contrast, expanding with your existing customer base is incredibly cost-effective. They already know and trust your brand, so selling them additional solutions reduces your costs and increases profit margins. A customer who buys once may generate a small amount of revenue, but one who continues to engage in upsells and cross-sells becomes a high-value, long-term partner, dramatically increasing their lifetime value.

The transactional “is that all?” approach fails because customers don’t always know what they need. By asking deeper, consultative questions, you get a clearer picture of their full project or challenges and can identify revenue opportunities they haven’t considered. This shifts your role from a simple vendor to a trusted advisor.

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Sales Advisory: A Framework for Hidden Revenue

A sales advisory approach transforms the sales process from a transaction into a strategic partnership. Instead of just selling products, you become a problem-solver.

Consultative Selling

This method puts the customer's needs first. By taking the time to understand their challenges, you can build trust and credibility. This helps you identify gaps and opportunities for value addition across their business, positioning you as an advisor rather than a supplier.

Account Management and Growth Planning

Effective account management goes beyond just maintaining an account; it involves actively nurturing it for growth. This includes:

• Scheduled account reviews: Discussing upcoming projects and long-term goals.

• Opportunity mapping: Identifying where your products or services could align with their business pipeline.

• Proactive engagement: Don't wait for them to call you. Anticipate their needs and initiate the conversation.

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Practical Strategies for Upselling and Cross-Selling

Strategic upselling is relevant, and customer focused. It happens when you:

• Map the customer journey: Identify natural points for upselling, such as during onboarding or when they are due for an upgrade.

• Use solution bundling: Create more value by grouping products or services into convenient bundles that simplify the customer's experience.

• Leverage data: Use your customer relationship management (CRM) tools to analyze purchase history, usage data, and customer segmentation to tailor your offers.

Cross-selling expands the relationship across new categories. It works best when it follows structured frameworks like Solution Selling or Land and Expand. The goal is to provide a complete solution to the customer’s challenge.

In my own experience, this has led to incredible results. What started as supplying products to a customer for their equipment once turned into hiring out our test facility to them. This created a completely new revenue stream and transformed the relationship.

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Empowering Growth, Securing Success

The art of the upsell and the power of cross-selling are not about quick wins. They are about building sustainable business growth through stronger customer relationship management. Too many businesses rely on weak tactics like "is that all?" which fails to deepen customer relationships.

For your business, the message is clear: hidden revenue opportunities are already within your existing customer base. By strengthening account management, mapping the customer lifecycle, and building trust, you can unlock these opportunities and secure lasting success.

At Josty, our focus is on helping businesses like yours master these practices. If you're ready to move beyond transactional sales and discover how sales advisory can transform your results, now is the time.

What Are You Really Selling? Understand Your Product’s True Value

 

Discover What You’re Really Selling: Unlock Customer Value

Businesses often misunderstand what they're truly selling. It's not just a product or service; it's an outcome, a feeling, or a solution to a customer's problem. This concept is the core of solution selling, a vital mindset shift for any business in today's competitive landscape. People don't buy features; they buy transformations and solutions to their needs.

Consider a café: it sells coffee, but customers are really buying a moment of peace, an energy boost, a comforting ritual, or a social experience. Understanding your product's real value from the customer's viewpoint makes your sales message far more persuasive and relevant.

Solution selling is a consultative approach that prioritizes diagnosing customer problems before presenting your offering as a tailored solution. Instead of starting with "Here's what we do," you begin with "What are you trying to solve?" This shifts the seller's role from a vendor to a strategic partner, building trust and fostering long-term engagement. The context is key; the same product can offer vastly different solutions depending on the customer's unique environment, goals, and pain points. Moving beyond simply listing features, solution selling focuses on what a feature enables, why it matters to the client, and how it improves their world, transforming the sales conversation from functional to emotional and personalized.

To identify what you're truly selling, interview your customers to understand their motivations and the impact your product has had. Map your value to different stages of their journey and audit your messaging to ensure it emphasizes outcomes, not just features. Crucially, align your sales and delivery teams to consistently echo the solution being sold, and train for empathy and active listening among your team.

Ultimately, your product is only part of the equation; customers pay for the outcome it creates. Businesses that grasp what they're truly selling outperform competitors, not just in numbers, but in reputation, loyalty, and long-term success. Selling transformation makes you irreplaceable, fostering deeper connections with your market. Take time to assess the experience you provide and what your customers truly gain, then consistently position your messaging and operations to match that value. This is the essence of solution selling, and it's essential for future-proofing your business.

Read the full post here or contact us to discuss further.