We are building a startup that solves an existing problem but with an innovating approach and some extra features / benefits that existing competitors do not have.
My question is about pricing.<p>If the competitors have say $18/month subscription charge, would it be better for me to give similar features at $ 9/month or $18/month or $ 25/month?<p>Also similarly for the Free plan, would it be better to twice as much free stuff or equal?<p>Any ideas, experience from existing founders along this line would be highly appreciated. Thanks in advance.
Competing with a big player on the market just with pricing is a lost cause in my opinion.<p>The few startups solving the same problems that actually win against big players (by winning understand biting a fair portion of the total pie to survive) are doing so by solving this problem fundamentally differently. Your innovative approach must be really innovative to stand a chance against the big guys. This has to be something completely different to stand a chance.<p>Offering lower price will not be sustainable for you in the long run I think. This will definitely hold you back on the growth side. Not to mention what the customer might think - lower price = lower quality. Besides a big player has a lot of resources! They can squeeze you out of the market easily with your lower price.<p>I am an unsuccessful former founder :) . But I made some similar mistakes. In my opinion, rocket-marketing and completely innovative product are the two musts for the successful groundwork of any startup.