I agree that competing on features seems like a mistake (one reason why I think Google+ will not fare that well). But competing on price I think is actually a very different matter. Price changes everything. Price can make the difference between feeling like a sucker or feeling like you just had a marvelous experience.
Take something like the iPad. With all of its beauty and design, had it started at $899 or $999 like many speculated, it would have done far poorer. Like potentially flopped. Apple knew price was extremely important and so they were very aggressive on it.
The Kindle and Nook are such good sellers, in part, because of their price. They're the impulse buys while you're standing at the checkstand. With that said price isn't always a factor (and in some cases more expensive is better than cheaper), but you should treat price just as you would UX and design -- very seriously.
Take something like the iPad. With all of its beauty and design, had it started at $899 or $999 like many speculated, it would have done far poorer. Like potentially flopped. Apple knew price was extremely important and so they were very aggressive on it.
The Kindle and Nook are such good sellers, in part, because of their price. They're the impulse buys while you're standing at the checkstand. With that said price isn't always a factor (and in some cases more expensive is better than cheaper), but you should treat price just as you would UX and design -- very seriously.