Test, test, test

An information broker had a dilemma. He was looking for a way to beef up his profits and was wondering if he should try lowering his prices.

On the one hand, he knew his business was good, that he had a great product and great service. And he charged for it, nicely above the norm.

On the other hand, he realized that if he did indeed price his services at what his competitors did, he could still make an okay profit from each transaction and probably dramatically increase the number of regular clients he has. That would force him to hire some additional staff, which he was not sure he wanted
to do, but he was looking for a way to expand his client base.

Such a problem, eh? Too much profit or too much business?

While it is important to have a USP (Unique Selling Postion) to call your own, basing your USP solely on

price is typically not a good thing, especially for investigators. The problem is that, at any given time,
someone - - who may be momentarily hungrier than you - - can lower their prices; you lose your USP, need to decide if you want to go even lower in your pricing, or are forced to do something else. However, you can test the concept of lower pricing on a small portion of your target audience. Or lower the prices to everyone but only for a limited time. Remember, you can and should test new offers with a target audience for a limited time.