Remember you are almost never rejected as over-priced the moment you mention money.

for example, asked your rate, just double the amount you thought of. If you build in plenty of ceiling, you can have the other guy look like a negotiation genius to his boss, and you still have achieved your original goal. But don't ever just cut your rates, ask for something in return - IP rights to software, endorsements on your site, just don't cut your rates. (I have, I always regret it)

PS I think tpateck has "don't cut your rates" as a tattoo. :-)

PPS - getting something in return really makes the other guy look like a negotiating genius