Several tips on how to react when a client is only interested in the price

Many a salesperson grapples on a daily basis with the fact that for many clients the price is the decisive factor. When a client asks about the price, the salesperson immediately finds him or herself torn between various dilemmas. What price should I give to engage the client, yet keep it acceptable for me? Should I start explaining that you can't compare my prices with those of the competition because I offer a unique solution, but wouldn't I sound as if I'm just trying to justify offering an overpriced product? Will I lower my price and get drawn into a price war with my competition, or will I keep the price as it is and risk losing a client? These are the questions that go through the mind of a sales rep when a client asks the simple question: "How much is it?"