"The product [...], has zero features other than what we consider the one, basic, bare minimum feature of the product space."
That sounds like a well targeted product to me, however you feel about it. Could you produce an economy version of your existing application that only had that feature? Then you would be in a good position to upsell later on. Even if the time scales make it impractical for this bid, it might be useful if you come up against this guy again later.
depends on how you define features. For instance if you say that a firewall has a single feature of keeping your network safe then maybe not, but in reality, there are lots of sub-features involved in that that may not be irreducibly complex.
"The product [...], has zero features other than what we consider the one, basic, bare minimum feature of the product space."
That sounds like a well targeted product to me, however you feel about it. Could you produce an economy version of your existing application that only had that feature? Then you would be in a good position to upsell later on. Even if the time scales make it impractical for this bid, it might be useful if you come up against this guy again later.