[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.