Why Price Match Policies May Not Work for Your Small Business 🕺
It sounds like a smart way to win customers: offer to beat any competitor’s price by 10%. Big names like Bunnings have built campaigns around this idea, known widely as price match policies. It feels reassuring. But for small business owners, is this strategy really sustainable? With the Bunnings price beat policy getting attention, many retailers are now asking: Should I offer a price beat guarantee too?
Understanding Price Match Policies Through the Bunnings Price Beat Policy
We’ve all seen the bold signage: “Find a lower price, and we’ll beat it by 10%.” It’s one of the most recognisable price match policies in Australia. Customers believe they’re protected from overpaying. The retailer looks generous and competitive.
The well-known Bunnings price beat policy is a perfect example. Bunnings uses it to reinforce its reputation for low prices. But there’s a catch—many of its products, like Citeco ladders, Trojan tools, or Jumbuck barbecues, are exclusive home brands. You can’t find them anywhere else. That means there’s nothing to compare prices against. The price beat policy rarely applies in practice.
Still, the perception of value is powerful. That’s what makes these policies work—for Bunnings.
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Why Price Match Policies Often Hurt Small Businesses
Now, picture a small local hardware store. A customer walks in and asks you to beat an online price. It’s lower than your cost. Do you match it and lose money, or do you say no and risk losing the sale?
For small businesses, this situation plays out often. Adopting price match policies, especially ones that follow the price beat policy model, puts pressure on already tight margins. It’s hard to track competitor prices, especially across online and in-store channels. Staff may feel unsure about how to respond, and policies become inconsistent.
It also attracts price-driven shoppers who won’t stay loyal. They leave as soon as another store undercuts you. That’s not the kind of customer base you want to build.
What Australian Small Businesses Risk by Copying Big Retailers’ Price Beat Guarantee
Large chains can make price match policies work. They buy in bulk, control their supply chains, and manufacture exclusive products. That gives them pricing power small businesses simply don’t have.
For them, a price beat policy is less about real savings and more about shaping customer perception. But when small businesses try the same approach, they risk setting expectations they can’t meet.
You end up discounting without the scale to absorb it. Worse, you train customers to care only about price. That’s a dangerous message—especially when your real small business competitive advantage lies in service, expertise, and community connection.
The Pitfalls of Chasing ‘Cheapest’ Pricing Perception
Trying to be the cheapest often leads to a race to the bottom. One business cuts prices, then another goes even lower. Everyone loses margin.
Take a boutique furniture store, for example. It sells Australian-made pieces with quality craftsmanship. A big-box competitor sells mass-produced flatpacks at half the price. Competing on cost alone isn’t possible—or wise.
When small businesses adopt price match policies to chase this perception, it can backfire. Your value lies in product quality, expert service, and personalised advice. But when you lean into lowest-price messaging, such as a price beat policy, you risk undermining those strengths.
What to Do Instead: Build Trust Through Transparent and Value-Driven Pricing
So, what works better? Focus on transparency, value, and trust.
Instead of relying on price match policies, explain what your price includes. Let customers know they’re supporting local jobs. Show the time, care, and service behind every sale.
Transparency is a powerful competitive edge. The Bunnings price beat policy highlights what happens when that’s missing. Many of their home-brand products aren’t clearly labelled, and customers often don’t realise they can’t actually price-match. That opens the door for small businesses to lead by example—with clarity and honesty.
Build Small Business Competitive Advantage Without Relying on Price Match Policies
Here are five practical ways to strengthen your pricing without falling into the trap of overused price match policies:
1. Review your current pricing strategy. Is it built on value or just reacting to competitors?
2. Communicate what sets you apart. Use signage, social media, or packaging to highlight service, product quality, or local expertise.
3. Train your team. Make sure staff can explain pricing confidently and help customers understand the value behind it.
4. Be transparent. If a product is exclusive, say so. If your price includes better support or warranty, spell that out.
5. Resist knee-jerk discounting. Develop a clear policy for how you respond to competitor pricing—without defaulting to a price beat policy—and stay consistent.
These steps can reposition your business as honest, confident, and focused on long-term small business competitive advantage.
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Don’t Compete on Their Terms—Price on Your Strengths
Price match policies, especially those like a price beat policy, work for big retailers because they control the game. They have scale, market power, and exclusive brands. For small businesses, following the same path often leads to squeezed margins, confused staff, and short-term sales with no loyalty.
But you don’t need to be the cheapest. You need to be trusted.
Focus on clear communication. Build relationships. Offer service and quality that can’t be compared in a quick Google search.
Instead of chasing price, build value. That’s how small businesses grow—not just in revenue, but in reputation and long-term competitive advantage.
Every business is different, so if you’re unsure where to start, we’re here to help. Reach out for a chat, or take a moment to reflect on how your pricing tells your story. The right strategy can protect your margins and your reputation—and we’d love to help you get there.
For a comprehensive view of ensuring the continuous growth of your business, Download a complimentary brochure on How To Drive Pricing Strategy To Accelerate Sales & EBIT Growth.
Are you a small or medium-sized business in need of help aligning your pricing strategy, people and operations to deliver an immediate impact on profit?
If so, please call (+61) 2 8607 7001.
You can also email us at team@valueculture.com if you have any further questions.
