Undercutting Competitors Can Lead To More Profit — Here’s How

On competition: if someone can cut you out from a deal by offering what you give, but for free — it will happen.

Unless, as always, you widen the gap between yourself and the competition.

Unsplash did that with stock photography. I’m raising this point from my Ideas Centre that the same thing will definitely happen with illustrations.

It’s not necessarily a race to the bottom but it’s a good comparison. And in many cases, successful startups that undercut what others give by offering stuff for free get one thing in return: attention.

Then, it goes two ways: either you do something with that attention and you’ll can make more than those people you’ve undercut — or you’ll lose it.

Note: this makes more sense in the context of The Future Of Freemium, as that’s a written piece where I lay out how this plays out.


About Ch Daniel

I run Chagency_, an experiences design agency — we help SaaS CEOs reduce user churn. I write daily on this topic and in similar areas. Here are my best pieces.

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