Well, you have to have a value proposition. "We're cheaper" is usually not very effective and it gets you the worst possible clientele. What people mean is "Tell them why they should buy from you instead of your more-established competitor, because price alone is a sorry value proposition".
Products that start with nothing more than price differentiation will eventually be pushed into a separate niche, which better serve the more price-sensitive customer base. Knowing this, it will be easier to gain clients if you can identify something you can optimize ahead of time. The smaller businesses/clients that will depend on your product will really value this and feel like they're being served well by your product, and not like they're the fodder in a price war or that they're using a bargain-basement, barebones product.
People do not feel proud that to be stuck in the bargain basement, so they're less likely to spread your product through word of mouth if you make it seem like a discount version of a well-known competitor.
As an entrepreneur, you just have to get a sustainable foothold somewhere and you can take everything else from that point. Optimizing a system for a price-sensitive audience is a good way to get started because the bigger guys are trying to leave that audience in the dust and they're usually very appreciative of the tools you're supplying.
Products that start with nothing more than price differentiation will eventually be pushed into a separate niche, which better serve the more price-sensitive customer base. Knowing this, it will be easier to gain clients if you can identify something you can optimize ahead of time. The smaller businesses/clients that will depend on your product will really value this and feel like they're being served well by your product, and not like they're the fodder in a price war or that they're using a bargain-basement, barebones product.
People do not feel proud that to be stuck in the bargain basement, so they're less likely to spread your product through word of mouth if you make it seem like a discount version of a well-known competitor.
As an entrepreneur, you just have to get a sustainable foothold somewhere and you can take everything else from that point. Optimizing a system for a price-sensitive audience is a good way to get started because the bigger guys are trying to leave that audience in the dust and they're usually very appreciative of the tools you're supplying.