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.
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.
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.
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.
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.
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.
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.
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.
