Title states most of it.
I told my current job (actually pleased with the company, but the location leaves much to be desired) that I got an offer at a competitors company (didn't want to leave but hey, money is money.)
Current employer said we would match the offer, and promote.
I had been stressing about money lately, and had just gotten a raise ($24->$25). I know I could have never negotiated this high of a raise without the other offer.
Value yourself. If you're valuable to the company, they will reveal it to you. If not, you'll move on and value yourself.