The Richwood Report

Lawrence Steinmetz gives some helpful guidance on how to be successful selling when your price is not the lowest. As a matter of fact, he says that real selling only takes place when you can show that your product is worth the price.

Anyone who has ever attended a purchasing training seminar knows they teach, 1) Always challenge the seller's price, 2) Always tell the seller their price is too high, 3) Always tell the seller you can get it cheaper down the street, and 4) If you don't ask for a discount, you won't get it.
They also teach buyers to prey on the seller's insecurities. The seller doesn't know whether the customer can get it down the street for less money, whether the competitor down the street has it in stock, can deliver it, on time, as promised, and whether the competitor provides the same general level of services, technical help, support, inventory, order turn-around time, etc., at the same price. It's easy for customers to say your competitor does all these things; it's something else for that to be true.
If customers beat you up for lower prices, you are probably inviting and encouraging those actions. How do salespeople invite customers to hammer them for price cuts or discounts? Usually, it is either through "wowing" or "cracking."

Learn what wowing and cracking are and how to avoid them. His final thought:

If price were the only reason people bought anything, only one seller would win: whoever could survive the longest at the lowest price until everyone else goes broke. A corollary is that if price were the only reason anyone bought anything, we wouldn't need sales reps.