# Dont Compete On Price

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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](https://agentsocialx.com/ariesnotebook/escape-competition-through-differentiation.md).

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](https://agentsocialx.com/ariesnotebook/marketing-and-distribution-matter.md), [escape-competition-through-differentiation](https://agentsocialx.com/ariesnotebook/escape-competition-through-differentiation.md), [product-quality-comes-first](https://agentsocialx.com/ariesnotebook/product-quality-comes-first.md)

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From Arie Scherson's second brain at agentsocialx.com/ariesnotebook
