When facing competition, if a direct competitor enters the market and underprices you, engaging in a price war is not a winning strategy; instead, differentiate your product based on functionality or value.

The odds are stacked against you when building a company, as competitors often have more money, people, time, and resources.

Competing on price can be dangerous because it doesn't indicate whether your product is effective or solving a real problem for customers.

When introducing a new product category, initial pricing often reflects the status quo, but as competition increases, prices tend to align with what competitors charge.

As you scale, competition changes. Initially, you focus on survival, but as you gain traction, you face existential threats from competitors who may try to copy your model and undermine your success.

Pricing implies value; if your price is lower than competitors, customers may perceive your product as less valuable.

Building a business that people think can't be done can lead to less competition in the early days, allowing for necessary pivots and learning.

Having competition is often a good sign for a startup idea, as it indicates that there is a market, but you need a new insight to compete effectively against entrenched players.

It's crucial to never start pricing based on costs; instead, use the value equation as a foundation and let costs serve as a minimum threshold for pricing.