Practical Sales Training™ > How To Convert > The Price Match Effect
The Price Match Effect
Sometimes the only thing between you and the deal is a lower price elsewhere. The Price Match Effect deals with that head on.
You simply match your competitor’s price. Not as a rule, but as a tool you pull out when it matters.
What Is It
The Price Match Effect means literally matching a competitor’s price to close the deal. So you give the buyer the number they’re comparing you against.
Why Does It Work
In crowded or commoditised markets, price often separates one seller from another. So matching it removes the last objection standing between you and the sale.
Competing on price alone is a bad long term strategy. It eats into your margins. And it attracts buyers who are only loyal to whoever’s cheapest.
But used occasionally, matching a price can show goodwill. So it can help you secure a client worth far more over their lifetime. This isn’t only for high street shops and online retailers either.
How Can You Use It
Publicise A Price Match Promise
State clearly in your messaging that you’ll “match or beat any quote.” Or say that buyers “won’t be beaten on price.” This raises awareness fast.
It can also blur the line between your offering and everyone else’s. So you’re competing on price rather than value. Even so, it drives sales.
Use It As A Closing Tool Instead
Bring price matching out unexpectedly, in the middle of a negotiation. Offer to match a competitor’s price. So you don’t lose the deal purely on cost.
So this version tends to work better. You come across as extending goodwill to the client. You’re not positioning yourself as the cheapest option in the market.
When It Works Best
This works best as a closing tool, used sparingly and only when it counts. So it lands as generosity, not desperation.
It also works best with a client worth keeping long term. So the short term margin hit makes more sense here. The relationship is worth more than one deal.
When It Becomes Dangerous
This becomes risky if you lead with it publicly. Keep it as a private closing tool instead. So a loud “we’ll beat any quote” message can cheapen your brand. It also pulls in exactly the price driven clients you don’t want.
It also fails if you match price too often. So buyers start expecting it every time, and the gesture stops meaning anything.
Common Mistakes
Leading With Price Instead Of Value
Making price match your headline message trains buyers to shop on price first. So lead with the value you offer, and hold price matching in reserve.
Matching Every Single Time
Saying yes to every price match request removes your leverage completely. So use it selectively, for the clients and deals actually worth it.
The Price Match Effect – An Example
A digital marketing agency quotes £2,000 a month for social media management. So their client mentions a competing quote of £1,800 from another agency.
Rather than lose the deal, the agency responds. They say: “If it’s purely down to price, we’re happy to match that to show you what we can do. Once you see the value we bring, we’re confident you’ll stay.”
So this saves the deal without racing to the bottom. It also positions the price match as a genuine gesture of goodwill. That reads very differently from desperation.
The client ends up feeling like they’re getting a fair deal and genuine quality. That’s very different from leading with a “we’ll beat any quote” message. So that kind of message can cheapen a brand.
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