increase your price and see what happens. then, focus your pitch around something other than promoting you have the lowest price. also ask your customers why they use your product or service. do some research and analyze the responses and then reformulate a new pitch and share the new one with prospects. see what happens.
separately, i would also ask myself if i had an issue behind why i can't increase the price. is it that you don't believe its worth the price? fear of failure? regardless, increasing your price will have a dramatic effect on your bottom line net profits and on your cash flow.
bottom line is right now you are in a position where you need many more deals to grow at the same rate as your competition. they get money up front and bigger margins which translates into more net profits.
i might try adding a $500 set up fee (and waiving some of it if you need to close the deal) and increasing your subscription to within a few points of your competition. then i would put all my focus on other value-adds, features, benefits, etc. and make sure your stuff is at least marginally better than the rest with great customer service and awesome relationships. then, figure out how to keep increasing value over time...
doing this might not make the easy deals come but with a little more hustle, you will be a stronger firm. being the lowest priced choice only goes so far and often is the beginning of the end.