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?
Also similarly for the Free plan, would it be better to twice as much free stuff or equal?
Any ideas, experience from existing founders along this line would be highly appreciated. Thanks in advance.
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.
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.
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.