Let's move on now to look at ____________ for pricing. The first we'll consider is rather old fashioned. It's called cost-based pricing. In cost-based pricing, first a company designs a product. Then it works out how much each ____________ costs to make, plus all the other costs such as delivery, packaging, and design. Finally, a(n) ____________ is added, to produce the profit. That seems pretty easy, right? However, there are many disadvantages to cost-based pricing. A very big one is that it doesn't consider the customers—that is, the ____________ , the people out there. Customers might not want to pay the price. Or competitors' products may have better____________ for the same price. Alternatively, your ____________ may have extra features, but not ones that people are happy to pay extra ____________ for. Or, you may find that people buy your competitors' products just because their ____________ is stronger. All of these factors could have a big effect on ____________ . Pricing based just on ____________ ignores all of these important factors.