It usually ends up with pricing. But there are other areas where you ay be able to assist a buyer, such as credit towards closing cost.
All the best to you.
Your agent should be advising you on this. I also don't think your record is all that bad, 5 showings in 42 days and one offer sounds like you are very close. Has your agent suggested anything for you to do that you haven't done such as decluttering, painting, curb appeal?
We usually see a big difference in showings resulting from price reductions in certain price ranges such as $155,00 down to $149,000 - keeping it under the $150,000 mark or $220,000 down to $119,000 and so on. I'm not sure that $169,900 to $167,000 is going to get you that same result. Depending on what your plans are going forward, you my want to consider bringing funds to the table to move forward. It is not unusual in this market.
Best of luck on the sale of your home.