Historically cloning a product with rock bottom pricing generally bankrupts the cloner, but cloning a product with rock bottom costs can be a winning strategy.
One of the more interesting situations that entrepreneurs encounter are competitors who are under pricing them but are doing so at the cost of their own margin. The risk is that you can 'win' (capture the market) only to find the more customers you get the more money you lose to the point where you're forced to raise prices or exit the market. Sometimes that choice is made for you by running out of cash.
So the bottom line is this, talking about pricing before you have the business does not make sense. If you can design a SaaS business and accurately cost it out and take a survivable margin and under price most or all offerings in the market, sure go for it. If on the other hand you just have a vague sense that it shouldn't cost as much as it does for this kind of service and so starting to sign up customers at a low price while you build and deploy the service? That is a recipe for disaster every time.
One of the more interesting situations that entrepreneurs encounter are competitors who are under pricing them but are doing so at the cost of their own margin. The risk is that you can 'win' (capture the market) only to find the more customers you get the more money you lose to the point where you're forced to raise prices or exit the market. Sometimes that choice is made for you by running out of cash.
So the bottom line is this, talking about pricing before you have the business does not make sense. If you can design a SaaS business and accurately cost it out and take a survivable margin and under price most or all offerings in the market, sure go for it. If on the other hand you just have a vague sense that it shouldn't cost as much as it does for this kind of service and so starting to sign up customers at a low price while you build and deploy the service? That is a recipe for disaster every time.