Low price is the least sustainable competitive differentiator. Unless you are absolutely the lowest cost producer, someone else can always undercut your prices. And low price says "low value" to your customers.
A couple of years ago, we doubled sales of our most profitable product while increasing our price relative to our competitors. How did we do it? By focusing on the value our product and services added to the customer's business, being sure we could continue to deliver that value, then helping our customers see and understand what we could do for them.
Seth Godin said it well:
"Cheaper is the last refuge of the person who's not a very good marketer."
Okay, so how about some practical advice on how to sell more at a higher price? For that, check out Michelle Nichols' recent BusinessWeek Online article (or see her website and check out the free resources). In the article, Nichols offers nine cool tools to show your customers that your price is right.