No one including ourselves wants to become involved in price wars with competition. We need to offer a great product and service offering and win the customer based on our professional abilities to provide exceptional service to our customers. However prospects and competition make this difficult sometimes.
Just recently we were involved in a software deal and were the 4th vendor asked in because the prospective organization could not decide whether they wanted to buy from any of the first 3 vendors they have been talking to. They told us they wanted a fresh look at their needs and issues. We spent time upfront to evaluate their needs as though we were brand new and maintained our professionalism and stayed out of a price war. The value we bring is our ability to solve our customers needs, help our customers become more profitable and save time and money in the long-run.
I have attached a great article written by Dave Leonard Chairman of Advanced Pricing Logic Software, Inc. that deals with this very subject.