Figure out how much time / money it will save them. How much that is all worth. Tel them your software is less money than that.
I have the luxury of knowing I have the best product, but even if you don’t, you can’t give in to the hardball shit. Play hard to get instead. Dare them to go buy the cheap thing and let them feel like you know they’re making a mistake and you’ll see them in a few months when that doesn’t work out. It pays to be cocky in those situations. It starts to make them feel like you must know something they don’t.
It’s the only way. (I sell one of the most expensive software products there is, with loads of cheaper competitors)
No one wants to be ripped off. Software basically can't be objectively priced. You might be selling £50k per seat software that competes with £50, or free. It sucks to be making that decision.
Can anything be objectively priced, how?
OTOH, softwares prices can be affected by too many parameters.
Then again, IT industry is a child when compared to say, mechanical or Civil industries.
Consequently they engage in endless hardball negotiation and invite other suppliers to provide quotes (even when your offering uniquely meets all requirements).
In the end the challenge is to get customers comfortable that they’re paying a fair price for what they’re getting. That however is much easier to say than to do.