Give things a shot. You'll be surprised to find that 1 out 5 marketing activities you do will actually produce quality results. I hear your concern and its a valid one. Just build good quality relationships with other quality businesses in your area. I doubt they will mind friendly competition. Especially if you are wanting to pass them some business.

Adjusting price (increasing or decreasing) according to demand is common sense but be sure that you are always creating much more value to your clients than you are charging them. Using you should always be an investment rather than an expense.

Let me know if you get people knocking down your doors. I always enjoy surprising success stories.