I believe startups should avoid competing on price, and I have also recommended making an offer more expensive in response to complaints that Meta ads cost too much. In a Shopify store I have, I raised prices and then observed that conversion rate increased; I did not share the amounts, measurement period, or a reason for the change. This pricing stance connects to my view that businesses can escape direct competition through differentiation in escape competition through differentiation.
On November 17, 2024, I responded to the complaint “Meta ads are too expensive” with the advice, “Make your offer more expensive then.” I did not explain what a more expensive offer would look like or provide evidence that it would address ad costs.
On December 1, 2024, I wrote, “Competing on price as a startup is stupid.” I stated this opinion without explaining why price competition is a poor startup strategy or identifying an alternative.
On April 19, 2025, I said I had raised prices on a Shopify store I have and observed that conversion rate increased. I gave no figures for the old or new prices, the size or timing of the increase, or the conversion-rate change, so this is an observation rather than evidence that the price change caused the increase.
Related: marketing and distribution matter, escape competition through differentiation, product quality comes first