City wants to test product. Should I give units away for free during the testing phase?

The city I'm working with wants to test a hardware product that our company makes. This would be the first time anyone has wanted to test it. Retail cost for each unit is $750 -- but they don't know that yet. Is it a good idea to give a few away for testing, and then when they see that it performs well, bring up pricing? Does this initially devalue the product? Anyone have experience with this type of stuff?

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