A comprehensive study based on in-market results from 650,000 companies/brands concluded that starting off by slowly building a profitable business gives you a much better chance of generating long-term profit than by focussing instead on driving rapid revenue growth via low prices/profit.

In other words, you're better off creating something uniquely valuable that people are prepared to pay more for and then taking the offer to a wider audience than persisting with an average product and growing it by keeping the price and profit margin low.

Check out this LinkedIn post for more information about the study and a discussion about its implications.