bodine - 12:23 am on Jul 4, 2007 (gmt 0)

I wouldn't recommend becoming an affiliate--you lose all control over the process and give the keys to them. That is, unless you've tried everything else...

Unfortunately, because I don't know your business, I don't have a good answer. It's the reality of business. You were probably priced lower than other sites, so it's all fair.

Can you offer something they don't? Service contract? Additional complementary software?

Have you automated everything you can? Is there a way to cut costs? How about a downloadable version of the software?

You could offer a rebate to get the price lower. Most people won't bother filling out the forms, but you will have to deal with the hassles if they do.

I assume the software developer has no interest in stopping them? Some care enough about their product that they want it sold at a higher price.

You could try laying low for a while (how long has this been going on?), until they raise their prices.

In the end, however, it is hard to compete with a company that does not have to turn a profit on products they sell...