[evanderkoogh]

A very valid point. My advice was not clear enough. I have updated the original post with your comment and added:

"I was certainly not trying to be whiny. This is just business after all. I was just trying to point out how a single minded focus on costs without relation to benefits helps neither the company or you as a contractor. But just to be clear, my advice is to open up the conversation from just costs to a negotiation which includes other things, including the benefits."

[kahawe]

You fail to realize that they might very well be in a position where nothing but costs and liquidity matter, no matter how much great work you are doing there and how beneficial it might be for them in the long run. And no, this doesn't necessarily tell you anything about how they might be on a "decline". It is not uncommon to have companies declare chapter 11 despite filled order books.

Your suggestion of opening up the conversation is good but maybe you can collect some better suggestions or ideas than just basically praising your own work or product to them. Avoiding a reduction of your price but offering them some sort of cut instead is one idea.