Does this sound familiar: The sales call is going well and your customer is giving you plenty of buying signals. But you get to the close, and the customer says, “ABC Company will do the same thing for less. Will you match their prices?”

You might be tempted to say yes, but the correct answer is no. Just don’t say it right away. Instead, ask this: “If price were not an issue, which proposal [or product] best meets your needs and will produce the best results for you?” With an honest answer to that question, you’ll know where you stand from a competitive standpoint.

Some points you might want to consider making when you’re asked for a price reduction are:

• Explain that you always offer a fair price and that if you were willing to simply cut your price on request, it would mean that you were overcharging to begin with.

• Point out the value in what you’re offering compared to the lower-priced product or proposal.

• If you agree to a lower price, take away something—never just drop the price for the same product.

Finally, be willing to walk away. That shows you are honest, have confidence in your product, and are not willing to let price-buying customers bully you. You might lose a few sales, but you’ll end up with a higher caliber of customer in the long-run.