A drawback of demand-based pricing is that it is less market focused than cost-based pricing.

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Demand-based pricing is actually more market-focused than cost-based pricing. Cost-based pricing is focused primarily on covering the costs of production and achieving a certain profit margin, while demand-based pricing takes into account how much the market is willing to pay for a product or service. By adjusting prices according to demand, companies can capture more revenue and profits, which ultimately benefits the market as a whole.

A Drawback of Demand-Based Pricing Is That It Is Less