I almost couldn’t believe my eyes when I read this:

Faced with growing competition from cheaper rivals, Starbucks Corp. is testing offering small cups of drip coffee for $1 with free refills in its hometown.

That’s about 50 cents less than the Seattle-based coffee retailer normally charges for an 8 oz. cup of joe, though prices vary from store to store.

Small cups of premium coffee at McDonald’s Corp., Dunkin’ Donuts and other lower-cost competitors typically cost just over $1, according to The Wall Street Journal, which first reported on Starbucks’ new program Wednesday.

But the company said in a statement e-mailed by Starbucks spokeswoman Bridget Baker that the test “is not indicative of any new business strategy.”

Starbucks would not say when the test began, how many stores are part of it, whether it’s considering a similar promotion for any other brews or whether any new test markets are on the horizon.

“Testing is a way of life for us, as we are constantly looking for new ways to connect with the customer and provide the best Starbucks experience,” the statement said.

What next? 50 cent donuts?