[throwaway32424]

Thanks for the advice. Really helps.

So I have some potential customers who like it. Some prefer the competitor because it has more features but think that product is too expensive. All I can think of right now is focus on a core set of features a target group would need and charge less. I'm worried my competitor would just release a cut down cheaper version later but then I guess anyone else could do that as well. Any advice?

Affinity Designer and Illustrator before exist I suppose. Maybe I have to focus on specific workflows and cost.

[helen842000]

I would recommend not to compete on price.

By all means position yourself as more affordable but if you go specifically after cheap customers there is no loyalty there. They will always switch to whoever is cheapest and are a nightmare to support.

It's better to have a cut down feature-set, make sure you price based on that value and being simpler than the competitor.

There is room for you both in the industry. Focus on the right subset of customers and the core features that are right for them.