If you're charging significantly less than competitors, you might be attracting customers who only want the cheapest option, leading to misleading data about your product's demand. Successful products often charge a premium rather than being cheaper than competitors, as they solve significant problems for customers who are willing to pay more for effective solutions.

Don't undervalue your product; while it's okay to start with lower prices, avoid making it a habit as it can lead to long-term pricing issues.

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

If your price is higher than the value customers see in your product, they won't buy from you, so it's crucial to find the right balance.

When pricing your product, focus on the value it delivers to the customer rather than just the cost of providing the service.

You should price based on the perceived value of your product rather than on cost, as many founders mistakenly use cost-plus pricing, which ignores the full value customers see.

Pricing should be viewed as a tool to learn about customer demand and value perception, helping to refine your product offering.

Pricing and packaging your product effectively is crucial for attracting customers and ensuring they see value in what you offer.

Being cheaper than competitors is often a losing strategy. As AI models become more capable and affordable, differentiation through unique value propositions becomes increasingly important.