Serving a lower price point is a perfectly valid strategy.
That said, I agree with you that there is a reason their pricing is high. It's a more profitable business. Unless you're Netflix it's hard to build a business charging $10/mo. So compete on price, sure, but it can't hurt to find a few rough spots on their product that you can improve. When we launched cronitor.io we at first competed on price but we also had objectively better technology: faster alerting, etc. As we've developed the product we've been able to charge more and it's worked out well.