U.S. patent application number 11/852130 was filed with the patent office on 2007-12-27 for a system and method for facilitating consignment and sales of inventory or services.
Invention is credited to JOSEPH M. KAR.
Application Number | 20070299784 11/852130 |
Document ID | / |
Family ID | 25530066 |
Filed Date | 2007-12-27 |
United States Patent
Application |
20070299784 |
Kind Code |
A1 |
KAR; JOSEPH M. |
December 27, 2007 |
A SYSTEM AND METHOD FOR FACILITATING CONSIGNMENT AND SALES OF
INVENTORY OR SERVICES
Abstract
A system and method for the facilitation of sales for items or
services between vendors and buyers through an intermediary
platform. The sale of these goods or services would be implemented
utilizing a haggling process in which the intermediary and each
individual buyer would bargain for a final sale price of that item.
Generally, each of the vendors provides the intermediary with a
retail sale price and a minimum sale price for each of the items.
Thereafter, a buyer would counter the retail price for each of the
items with an offer presumably below the retail price. Haggle
tables are utilized to allow the intermediary to counter the
buyer's initial offer as well as subsequent counter offers by the
buyer. Once a sale price for the particular item or service is
finalized, the item would be delivered or service rendered to the
buyer and the vendors account with the intermediary would be
credited to reflect this purchase.
Inventors: |
KAR; JOSEPH M.; (Sherman
Oaks, CA) |
Correspondence
Address: |
MICHAEL WINFIELD GOLTRY
4000 N. CENTRAL AVENUE, SUITE 1220
PHOENIX
AZ
85012
US
|
Family ID: |
25530066 |
Appl. No.: |
11/852130 |
Filed: |
September 7, 2007 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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09983702 |
Oct 25, 2001 |
7269571 |
|
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11852130 |
Sep 7, 2007 |
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Current U.S.
Class: |
705/80 |
Current CPC
Class: |
G06Q 30/0613 20130101;
G06Q 50/188 20130101; G06Q 30/08 20130101 |
Class at
Publication: |
705/080 |
International
Class: |
G06Q 30/00 20060101
G06Q030/00 |
Claims
1-25. (canceled)
26. A method of facilitating the sale of goods or services offered
from at least one vendor to at least one buyer through an
intermediary platform, in communication with the vendors and the
buyers comprising the steps of: each of the vendors providing the
intermediary platform with descriptive information relating to each
of the goods or services offered by the respective vendor, said
descriptive information including a minimum sales price for each of
the goods or services; constructing at least one haggle table, said
haggle table stored in a memory device associated with a processor
located at the intermediary platform; initiating a haggle process
by a buyer communicating a first offered price for a first of the
goods or services to the intermediary platform; the intermediary
platform comparing said first offered price to said minimum sales
price of said first of the goods or services; and consummating the
sale of said first of the goods or services of said first offered
price is greater than, or equal to, said minimum sales price of
said first of the goods or services.
27. The method in accordance with claim 26, further including the
steps of: continuing said haggle process if said first offered
price is less than said minimum price of said first of the goods or
services with the intermediary platform determining a counter offer
utilizing said offered price, said minimum sales price and said
haggle table; presenting said counter offer to the buyer; and
further continuing said haggle process until a final offer is
accepted or no additional counter offers are made by the buyer or
vendor.
28. (canceled)
29. The method in accordance with claim 26 wherein the sale of said
first of the goods or services is consummated only after a
predetermined number of offers and counter offers between the buyer
and said intermediary have been exhausted.
30. The method in accordance with claim 27 wherein the sale of said
first of the goods or services is consummated only after a
predetermined number of offers and counter offers between the buyer
and said intermediary have been exhausted.
31-40. (canceled)
Description
FIELD OF THE INVENTION
[0001] The present invention is directed to a system and method for
facilitating the sale of inventory and/or services on a consignment
basis, for example, by utilizing the Internet, or other
communication devices.
BACKGROUND OF THE INVENTION
[0002] Historically, particularly in remote rural areas, sales
persons or vendors traveled to their potential customers (whether
retail, wholesale or raw materials) utilizing a covered wagon to
store their wares. The customers would then examine these wares and
the sale would be consummated. While some of these goods might
carry a stated price therewith, the customers could be encouraged
to bargain with the sales person before the sale was finalized.
Likewise, buyers in need of services, for example, plumbing repair,
carpentry, therapies, may seek out local vendors and often bargain
over the price for the services before a sale is consummated.
[0003] The invention and utilization of motorized vehicles
strikingly changed the demographics of our country, allowing
suburbs to spring up in proximity to urban areas. The use of these
vehicles changed the manner in which individuals would shop for
goods or services. Rather than the sales person coming to the
customers, individualized stores, shopping centers, and specialized
service providers were established in which the customers traveled
to these sales outlets. Based upon the size of the establishment as
well as the personnel employed by the sellers, the stated sale
price of a particular item could not be changed by the sales person
and bargaining or haggling over this sales price was either
discouraged or totally eliminated.
[0004] However, evolving technology has again altered the manner in
which the buying public purchases various goods or services. This
change in purchasing habits has also been precipitated by the
change in the way of life of the purchasing public. For example, a
large number of both partners in a marriage now work full time.
When children are added to this couple's family, schedules can
become very hectic. Therefore, many people are having a very
difficult time finding sufficient time to comparatively shop or
even travel to brick and mortar outlets to examine and purchase
items. More and more of these brick and mortar stores are utilizing
mail order catalogs to display their goods and to prompt the buyers
to order these goods over the telephone.
[0005] Another change of technology which has altered the manner in
which the public purchases goods or services would be the Internet.
Virtually any company of even a modicum size has developed their
own web pages allowing individuals to purchase goods or services
on-line. These purchases would then be sent to the purchaser's
residences without requiring the purchaser to travel to the brick
and mortar establishment. Or, if a service, the customer would more
conveniently and economically have the needed services provided to
them.
[0006] The Internet also allows for the purchase of goods generated
by a secondary market such as items owned by an individual and not
the original vendor. Rather than leaving these unneeded but still
usable items to waste or to consignment stores for sale, a number
of Internet websites are dedicated to the sale of these items,
including the sale of collectibles. U.S. Pat. No. 6,108,639, issued
to Walker et al, describes such an operation. This patent is
directed to a system and method for processing the sale of a
secondary market item. An intermediary company would act as a
vehicle allowing sellers to advertise various items on the Internet
which can be purchased by respective buyers. The intermediary
company would operate a website to illustrate the items for sale as
well as include a purchase price. If a particular buyer wishes to
purchase one or more of these sale items, the sale can be
consummated over the Internet. Once this sale is consummated, a
legally binding contract has been forged between the buyer and the
seller. At this point, that item would be transported to the buyer
and the seller would be properly compensated. It is noted that his
patent contemplates the use of bargaining over the purchase price
between a vendor and the buyer, with the intermediary working to
coordinate the sale, negotiation, and consummation of each
transaction.
SUMMARY OF THE INVENTION
[0007] The deficiencies of the prior art are addressed by the
present invention which is directed to a system and method for
sales of inventory through an intermediary, by facilitating a
transaction between buyers and vendors directly or indirectly by
means of electronic or digital communication. Although the present
invention contemplates the utilization of a consignment technique,
it should not be so limited and other types of sales relationships
could be employed between the intermediary and the vendors. A
number of vendors would advertise their goods or services through a
website and/or platform developed by the intermediary. The
intermediary would display images, descriptions, marketing
material, and attributes of the products or services vendors wish
to sell. Additionally, each of the vendors may include a suggested
retail price to be associated with each of the items for sale. When
a potential buyer contacts the intermediary by either logging on to
the intermediary's website, by telephone, or wireless device, in
conjunction with a sales catalog, the buyer would have the
potential to negotiate over and purchase and/or order the goods or
services advertised by one or more of the vendors. Although each of
the advertised goods or services may include a suggested retail
price, the present invention would contemplate that a haggling
process can be entered into between the buyer and the vendor. The
vendor must also inform the intermediary of a minimum sale price
for each of the items. The intermediary would create or be provided
with a haggle table used to produce counter offers to each of the
buyer's offers. This haggling or bargaining process would continue
until a final offer is made by either the buyer or the seller. At
this point, if the buyer or seller accepts either parties' final
offer, a sale would be consummated and the particular sales item or
service would be delivered from the vendor to the buyer. It is
important to note that none of the items could be sold at a price
lower than the minimum sale price without the vendor's prior
authorization.
[0008] Since many of the vendors utilizing the system of the
present invention would be brick and mortar stores in which
inventory can be depleted by sales consummated at the sellers'
premises, either over the telephone, or with buyers traveling to
the brick and mortar stores, it would be important for the
operation of the present invention to insure that each of the
vendors would be in a position to supply the sales which would be
made over the intermediary's system. Therefore, each of the vendors
would be required to maintain a separate "virtual" inventory and an
in-store inventory. The intermediary would inform that particular
vendor when the virtual inventory has been depleted and
automatically default to the conditional purchase feature. The
conditional purchase feature enables a customer to place an advance
order for the desired, but "out of stock" or unavailable good or
service. In recognition of the buyer's advance order, the vendor
may implement an incentive price or discount from the suggested
retail price or create any other incentive to attract advance
orders. Furthermore, if this virtual inventory has not been
depleted but the in-store inventory has been depleted, the vendor
would be able to apportion the virtual inventory to fulfill sales
for the vendor's brick and mortar establishment.
[0009] Although it is contemplated that the major areas of
coordination between the buyers and the intermediary would be over
the Internet or wireless service, other types of communication
could be used. For example, the intermediary could be equipped with
a voice recognition system allowing the haggling process to be
undertaken over the telephone with the voice recognition system
having access to the haggle table so that proper counteroffers
would be presented to the potential buyers.
[0010] Alternatively, a vendor could directly interact with the
customer to produce a counter offer without the use of the voice
recognition system, for example, by e-mails through the
intermediary.
[0011] Additional features of the present invention as well as a
more detailed description of the invention will be illustrated with
respect to the accompanying drawings, which are incorporated in and
constitute a part of this specification, which illustrates several
embodiments of the invention, and together with the description,
serve to explain the principles of the invention.
BRIEF DESCRIPTION OF THE DRAWINGS
[0012] FIG. 1 illustrates a block diagram of the system of the
present invention;
[0013] FIG. 2 illustrates a block diagram of a portion of the
invention showing the allocation of the inventory;
[0014] FIG. 3 is a flow diagram of the present invention;
[0015] FIG. 4 is a flow diagram illustrating the haggle method
according to the present invention;
[0016] FIG. 5 is a flow diagram illustrating the reverse haggle
method according to the present invention; and
[0017] FIG. 6 is a flow diagram illustrating this bulk the haggle
method according to the present invention.
DETAILED DESCRIPTION OF THE PRESENT INVENTION
[0018] As indicated hereinabove, one of the purposes of the system
and method of the present invention is reflective of the fact that
buyers are endeavoring to reduce the time and effort required in
the shopping process in which repeated trips must be made to stores
and the mall to competitively purchase various goods and services.
While the present invention addresses some deficiencies of the
prior art by providing an Internet/telephonic/wireless platform in
which a number of vendors can, on a consignment basis or through
other type of business relationship, offer their new and used goods
or services for sale to a number of buyers, it should be noted that
the system and method of the present invention is primarily to be
used as a supplement for brick and mortar sales as well as for
consummating sales over the telephone and wireless mediums. Because
the system and method of the present invention would allow many
sales of goods and services to be completed largely automatically,
the sales force employed by each of the respective vendors would be
made more efficient, thereby providing an exceptional opportunity
for small and mid-sized businesses to compete for sales on a
national level. On a broader basis, distributors, wholesalers, and
suppliers of all types may utilize the present invention to manage
their supply chain and distribution to retailers on a more
individualized manner.
[0019] The system 10 of the present invention which would
accomplish this end is illustrated in FIG. 1. A plurality of
vendors 12, 14 and 16 would use an intermediary 18 as a platform
for displaying their goods and services for sale to a plurality of
buyers 20, 22 and 24. Although a large portion of the present
invention contemplates the utilization of the
Internet/telephonic/wireless services as a sales platform whereby
the intermediary develops a website or sales platform, other types
of commerce could also employ the present invention. For example,
instead of presenting the goods and services over the
Internet/telephonic/wireless, the intermediary 18 could be utilized
in conjunction with a voice recognition system in which goods or
services included in a circular or mail order catalog for sale by
the vendors 12, 14 and 16 are sent to various buyers.
[0020] FIG. 2 illustrates a more detailed description of the system
and method of the present invention than is shown in FIG. 1, in
which a vendor 16 and a buyer 24 utilize the intermediary 18 to
consummate a sale. Since it is contemplated that many of the
vendors would utilize the system and method of the present
invention to augment their brick and mortar sales, it is important
that inventory be tightly controlled. Therefore, the present
invention contemplates a reserve method in which each of the
vendors reserve at a minimum, one item in a virtual inventory 26.
The vendor's remaining inventory is relegated to an in-store
inventory 28. The vendor will then be able to directly manage and
regulate inventory using on-line store management functions; and/or
the conditional purchase feature. Items need not be taken out of
the vendor's general inventory and the vendor would need only to
regulate his/her in-store inventory so that sufficient virtual
inventory is available for on-line sale through the present
invention. Should an item reserved for on-line sale be needed to
fill an in-store sale, the vendor must notify the intermediary
(such as by phone or by the Internet). When this occurs, that
particular item would default to a conditional purchase feature
which is designed to salvage what otherwise might be a lost sale. A
buyer faced with an "out-of-stock" item is offered the opportunity
to order the desired item with delivery made shortly after
restocking by that vendor. The vendor would still have the
opportunity to sell this item through a straight purchase or
haggled method, as described hereinbelow, with an optional discount
for the buyer's inconvenience.
[0021] As illustrated in FIG. 2, communication is provided between
the intermediary 18 and the virtual inventory 26 in a
bi-directional manner allowing the intermediary to inform the
vendors of the number of items in the virtual inventory 26.
Therefore, the vendor would be made aware of the depletion of the
virtual inventory 26, allowing the vendor to order or produce more
inventory, some of which would be designated as virtual inventory.
Likewise, the vendor would inform the intermediary when the vendor
is forced to move items from the virtual inventory 26 to the
in-store inventory to finalize a sale within the vendor's in-store
location. This communication between the vendor 16 and the
intermediary 18 could be lessened dramatically if the intermediary
is authorized to manage the vendor's entire inventory. For example,
if the vendor operates multiple outlets at more than one physical
sales location, the inventory control system would track the
independent virtual inventory as well as the physical inventory of
each of the vendors for each location. Additionally, if the nearest
store's inventory is depleted, the inventory control system would
direct a purchase order to any other location with sufficient
inventory. This would help regulate a chain store's sales through
the intermediary and coordinate delivery of the sold item.
[0022] The platform of the intermediary 18 would be managed by
computer systems controlled by a processor 30. The processor would
include, among other features, a memory 32 provided with software
for operating the system and method according to the present
invention as well as a haggle table 34 to control the bargaining
process and a voice recognition system 35.
[0023] Although it is contemplated that most communication between
the buyers and the intermediary would be through the use of the
buyer's personal computer, telephone or wireless device, it is
realized that not every buyer has access to a personal computer.
Consequently, the voice recognition system 35 would allow each
buyer to haggle with the intermediary over the phone. Furthermore,
the voice recognition system itself can be eliminated and an
electronic exchange could occur between the buyer and the vendor to
negotiate a purchase price for a particular item.
[0024] The generalized method of the present invention 36 is
illustrated in FIG. 3. The intermediary would sign up various
vendors at step 38 as participants in the system and method of the
present invention or, license its use for proprietary use. This
sign-up process could occur in one or more geographic areas. A
consignment or other type of sales agreement would be signed
between the intermediary 18 and the vendors to give the legal
rights to sell or provide a buyer the opportunity to buy a selected
number of the vendor's inventory through the various web and
telephonic methods. Information such as product images, pricing
points and other information pertinent to each of the items for
sale would be provided to the intermediary by each of the vendors
or incorporated into the vendor's proprietary system if licensed.
Alternatively, the intermediary, based upon information provided by
the vendors, could provide this information directly to the buyers.
The information would then be translated into a presentable form
for virtual sales over the Internet and for computerized
voice-recognition catalog sales, or through wireless mediums.
[0025] The intermediary would also compile a directory including
various information provided from each of the vendors. This
information could include, but is not limited to, the business
name, location information, contact information, a link to the
intermediary platform as well as days and hours of operation for
the vendor's store locations. The intermediary would operate
utilizing a comprehensive search engine and sales assistance known
as "Tesa" which would be able to specifically search through the
consignment database of goods and services for a buyer's
necessities. The search can be done based upon any combination of
listed search criteria such as price ranges, quality of goods and
services, physical parameters (if applicable), model number,
location, and type of item or natural language search. Tesa would
sift through the consignment database for suitable items to display
to the buyer for a potential sale. The search can occur in rounds
to help narrow down an item, or all at once to allow the buyer an
opportunity to "window shop". Although it has been found that Tesa
would operate very efficiently with the system and method of the
present invention, other search engines could also be employed.
[0026] The vendor provides the intermediary with the product
specification at step 40. The virtual inventory is determined at
step 42, these items would be then consigned to the intermediary at
step 44 for sales to the various potential buyers. Although FIG. 3
illustrates a consignment of goods from the vendor to the
intermediary, it is acknowledged that other types of sale
arrangements can be used, including licensing the invention for
proprietary use.
[0027] At this point, the intermediary 18 would give the
opportunity to one or more of the buyers to purchase any of the
items in the virtual inventory of any of the vendors. This purchase
could be consummated in the usual manner in which a retail price
associated with each of the items for sale must be met by the
buyer. Alternatively, according to the system and method of the
present invention, the suggested retail sales price or no price
could be used as a starting point for a bargaining or haggling
process to be commenced between the vendor and the buyer at step
46. Once this bargaining process has been completed, thereby
resulting in the sale of the particular product at a haggled price
at step 48, the buyer would pay the intermediary at step 50. At
this point, the item would be shipped to the buyer at step 52 and
the intermediary would pay the vendor at step 54. Upon any sale,
the item is immediately deducted from the vendor's virtual
inventory and payment is processed directly to the vendor's demand
deposit account or other banking arrangements, as per a service
agreement between the vendor and the intermediary. Alternatively,
the amount could be credited to the vendor's intermediary
account.
[0028] Once the buyer has paid the intermediary at step 50, the
vendor would be immediately notified using various direct links
known in the art such as faxes, e-mails, voice mails or the like of
that particular purchase. The vendor must then follow a prescribed
procedure to confirm receipt of the order and that processing is
underway. The vendor would then confirm the sale to the
intermediary and immediately packages the item for pick up by a
courier or by customer instore, in their appropriate manner of
business. Thereafter, and upon confirmation that the purchase item
is received by the courier or buyer, payment is finalized. Since it
is contemplated that the present invention would result in
extensive use of a courier service, the intermediary would have the
ability to negotiate bulk rates and to develop relationships with
major courier companies. Eventually, the lowest courier rate can
automatically be assessed with a particular courier. Alternatively,
the vendor itself would determine the particular courier which is
utilized. Payment for shipping can be designated to either the
vendor or the buyer depending upon the retail industries practice
or at vendor's or buyer's option. It is noted that higher priced
items are better able to absorb a shipping charge and thus
merchants may more readily pay for shipping on such items. A
further alternative is that the buyer would elect to pick up the
purchased item directly from the store regardless of the fact that
the sale was finalized on-line. The information included in the
aforementioned directory will be tied to this sales feature and
would allow the local buyers to centralize a search to buy items
from their local retailers.
[0029] The present invention in which a consignment sale is
effectuated between a vendor and a buyer could utilize three
different types of sales techniques. The first technique would be
the straight sale in which the vendors would offer their items for
sale at a fixed price with possible sales or promotional discounts.
The second type would be the auction format adopted by various
companies such as Yahoo or E-Bay in which a number of sellers bid
among themselves for a particular item offered by a single vendor.
The third method of producing a sale, according to the present
invention, would be to employ a haggling or bargaining technique in
which a single buyer would haggle with a single vendor to determine
the sales price of a single item.
[0030] This third technique 56 is illustrated in FIG. 4. It is
contemplated that this haggling process would automatically be
conducted utilizing the intermediary's platform such as its
website. Therefore, a haggle table must be constructed at step 58.
The haggle table is an artificially created reference chart used to
calculate the intermediary's counter offers to a buyer's offer or
offers. It can be created to suit each of the particular industries
utilizing the system and method of the present invention.
Therefore, since a plurality of vendors would utilize this system,
it is contemplated that several of these haggle tables would be
constructed and would be simultaneously maintained by the
intermediary. Consequently, although FIG. 4 illustrates the use of
a single haggle table, it is noted that a number of these haggle
tables would be included in the memory of the intermediary. A
standard industry model which the intermediary would construct
could be used as a default unless the vendor elects to utilize an
alternative for his/her own transactions. Eventually, these haggle
tables can be made to reflect different haggling techniques. It is
important to note, however, that the haggle tables are flexible to
suit any negotiating technique by simply re-setting the benchmark
numbers relied upon for the intermediary's counter offers. It is
also important to note that the particular haggle table can be
created with each particular vendor's input.
[0031] Once the haggle table is constructed and included into the
memory of the intermediary's platform, and the vendor has applied
the retail benchmark price for each of the items offered for sale
or the item is "up for bidding" (no suggested retail price
provided) at step 60, negotiations between the vendor and the buyer
can be commenced to stimulate an exchange and promote sales. At
this point, the buyer would make a counter offer to the suggested
retail price through the intermediary's platform at step 62 for a
particular item. Since it is important that a base benchmark price
be established under which that particular item would not be sold,
the vendor would also supply to the intermediary a minimum sales
price for each of the retail items which would also be included in
the intermediary's database and algorithms.
[0032] The intermediary notes whether minimum exchanges have
occurred at step 64. At this point, the buyer may be given the
option to present a final counter offer at step 65 A. The buyer is
usually permitted to make a final offer after the first round of
haggling has ended. FIG. 4 demonstrates the final offer function at
the instance of a transaction, however, this option may be enabled
after a designed number of minimum exchanges has occurred between
the transacting parties.
[0033] Therefore, the buyer and vendor could not present each other
a final offer until they have attempted to haggle a certain number
of times. If the final offer function is only engaged after a
designated number of minimum exchanges in step 64, the transaction
proceeds directly from step 62 to step 68. But, once the final
offer option is enabled, the transaction proceeds from step 62 to
step 64 and so on. This function permits the transacting parties to
efficiently determine if a sale can be made. If the buyer elects to
present a final offer, the intermediary determines whether the
buyer's final offer is greater than the minimum sale price at step
65 B. If it is greater, the buyer may consummate the sale at step
65 C. If the buyer's offer is less than the minimum sale price, the
haggling ceases without consummating the sale at step 65 D.
[0034] The present invention would, at step 68, calculate a desired
discount amount (DDA) and a most discount offered (MDO). The
desired discount amount is determined by subtracting the buyer's
offer from the stated retail price. The most discount offered is
determined by subtracting the minimum sale price from the stated
retail price. The haggle table associated with the particular item
for sale would be referenced at each round/exchange of haggling for
the desired discount amount to determine a discount haggle (DH) at
step 70. The discount haggle is a random number from a determined
percent number range that the intermediary determines. This
discount haggle is multiplied by the most discount offered to
determine an amount which would be subtracted from the stated
retail price which would then constitute a counter offer at step
72. At this point, the buyer is presented with the counter offer at
step 75 and is then free to purchase the item at that price or
continue haggling at step 76 until the intermediary or the buyer
make a final offer. If the buyer continues to haggle, the
intermediary would replace the stated retail price with a
prevailing haggle price for that item and continues the haggling
processing as described herein using that prevailing haggle price
at each successive exchange.
[0035] Additionally, the intermediary will maintain a running count
or tally of the successive most discount offered which would
involve maintaining a separate and constant record of the most
discount offered from the inception of the haggling and subtracting
the most discount offered from the product of the most discount
offered discount haggle for every round of haggling at step 73.
When the most discount offered reaches zero or is within a
designated number range, above the minimum sale price as shown by
steps 73 A and 73 B, the intermediary can issue a final offer to
the buyer. The running count is an internal record of the remaining
most discount offered from the start of the haggling and
subtracting the product of the discount haggle multiplied by the
most discount offered at every exchange between the buyer and the
vendor. Please note that the most discount offered represents the
highest dollar discount the intermediary is authorized to negotiate
with the buyer. When it reaches zero, only the minimum sale price
remains to be offered. At that price or within a given range
thereto, the intermediary can make a final offer to the buyer for
the desired item. At step 75, the buyer is presented with the final
offer determined at step 72, and at step 76, the buyer is given the
opportunity to consummate the sale or reject the offer and
terminate the transaction between the buyer and the vendor for that
particular item. Also, if the final offer is made by the buyer and
within a designated dollar range of the minimum sale price, the
intermediary may forward the offer directly to the vendor for
acceptance or rejection. But, if the vendor does not respond within
a certain time period, the final offer is deemed rejected.
[0036] Because of the possibility of unfairness to the vendor or
the buyer, the intermediary may impose artificial restrictions on
the successive haggling process so that the counter offers remain
orderly. For example, a successive haggle price by the buyer made
at or below the first haggle price or any subsequent haggle price,
may trigger a modified counter offer from the intermediary. If this
occurs, the intermediary can respond by reiterating the last haggle
price and/or noting the unfairness. Alternatively, the present
invention could continue haggling based on buyer's last counter
offer and irrespective of the unfairness, but so long as the final
sale price is above the minimum sale price. Finally, a search
engine, such as Tesa, could be employed to search for an item of
comparable value to the unfair counter offer. Furthermore, since
the buyer might be aware of the existence of the minimum sale price
and therefore would continue to haggle to endeavor to obtain this
lowest possible price, a final offer could be triggered after a
predetermined number of exchanges have been made between the buyer
and the intermediary for a particular item.
[0037] Although it is contemplated that the haggle system of
bargaining be conducted strictly between the buyer and the
intermediary, based upon various restrictions which might be
imposed by the vendor, it is possible to permit a direct exchange
with the vendor. Although it might not be advisable for the vendor
to personally respond to every round of haggling because of the
difficulty in managing such an operation, certain vendors may find
a direct exchange with the vendor helpful for their industry.
[0038] An example illustrating the haggling process shown in FIG. 4
will now be given. If the buyer counters with a $75 offer for an
item listed at a retail price of $110 and a minimum sales price
designated at $90, the intermediary would initially determine the
desired discount amount which would be ($110-$75) which would equal
$35. The intermediary has already determined that the most desired
(MDO) would be $25 ($110-$90). Checking the haggle table for the
desired discount amount of $35 for that item or service, the
intermediary may therefore only negotiate the determined amount of
the most discount offered in accordance with the haggle table
criteria. A random number corresponding to the desired discount
amount is determined (the discount haggle) from the haggle table
and is multiplied by the most discount offered. Assuming that the
random number chosen is 23.5% and that the most discount offered of
$25 is utilized, then the counter offer would be $25.times.23.5% or
$5.87 minus the stated retail price of $110 resulting in a counter
offer of $104.13. The intermediary would then confirm that the
intermediary's offering price is above the minimum sale price and
whether a final offer is appropriate. If this is the case, the
intermediary would counter offer to the buyer an amount of $104.13.
At this point, the buyer is free to purchase the item at that price
or continue haggling until the intermediary makes an acceptable a
final offer or haggling ceases due to loss of interest. If the
buyer continues to haggle, the intermediary replaces the stated
retail price with the prevailing haggle price for that item and the
minimum sale price is then subtracted from the prevailing price to
determine the current most discount offered, and the running count
for the most discount offered is updated.
[0039] Both the buyer and the intermediary are able to make a final
offer to each other using this process. The buyer may do so at any
time during the haggling process with some systemic limitations.
This would simply require inputting the desired price and clicking
on a final offer icon if the Internet is utilized. The intermediary
would determine whether this amount is above the minimum sale price
and would respond accordingly.
[0040] The intermediary could issue a final offer upon depletion of
the most discount offered or at a point which the prevailing price
of an item is within a desired range to the minimum sale price.
This would be achieved after successive haggling and vendors or the
intermediary may also designate a period when a final offer must be
made in order to move the process along. It is important to note
that the final offer does not necessarily have to be the minimum
sale price. The intermediary may present a final offer within a
given percentage or dollar amount above or, if authorized, below
the minimum sale price.
[0041] FIG. 5 illustrates an alternative 78 to the haggling process
described in relation to FIG. 4. This alternative is characterized
as a reverse haggling process. This process permits a vendor to
allow a buyer to start the haggling process with their own offer
for a good or service. In this process, the vendor would display an
item or service for sale without a price and the buyer would then
offer a price for that item. To assist the buyer in determining at
least an initial offer price, the intermediary may display the
average selling price of that particular item which was reached
based upon previous haggling of that item with other buyers. As
shown at step 80, a reverse haggle table would be constructed. At
this point, the buyer would make an offer to the intermediary at
step 82. The intermediary would determine and verify if minimum
exchanges occurred at step 84. The intermediary would then
determine if the buyer made a final offer at step 85 A. If so, the
intermediary confirms whether the final offer is above the minimum
sale price at step 85 B.
[0042] The sale is consummated with the buyer, at step 85 C, if the
buyer's final offer is above the minimum sale price. However, if
the buyer's final offer is below the minimum sales price, the
intermediary rejects the final offer and terminates the sale in a
prescribed manner at step 85 D. The desired discount amount is
referenced to the reverse haggle table to determine the discount
haggle at step 90. The intermediary would then multiply the
discount haggle with the most discount offered and then subtract
that result from the suggested retail price to determine the
intermediary's counter offer at step 92.
[0043] At step 93 A, the intermediary determines whether the most
discount offered is zero or within the intermediary's final offer
range. If so, the intermediary confirms that the final offer is
above the minimum sale price at step 93 B. If the intermediary's
final offer is above the minimum sale price, the intermediary
presents the final offer to the buyer and waits a designated time
period for the buyer's response at step 96. The buyer may
consummate the sale at step 85 C, reject final offer and terminate
the transaction at step 85 D, or the transaction terminates after
the designated time period expires at step 85 D.
[0044] During this process, the desired discount amount and the
most discount offered are determined at step 88. If the
intermediary's final offer is not above the minimum sale price at
step 93 B, the intermediary presents the buyer with the
intermediary's offer, derived at step 92, as the intermediary's
final offer. The buyer may then accept/agree to the final offer or
reject it at step 96. If accepted, the buyer consummates the
transaction at step 85 C; or if rejected, the sale is terminated at
step 85 D. If the most discount offered is not zero or within the
final offer range, this counter offer would be presented to the
buyer at step 95 and the buyer may accept/agree to the counter
offer; reject and terminate; or reject and counter offer at step
96. If the buyer accepts/agrees, the transaction is consummated at
step 85 C.
[0045] If the buyer rejects the offer and terminates, the
transaction is terminated at step 85 D. Or, if the buyer rejects
the offer and makes a subsequent offer, the haggling process
returns to step 82, until the transaction is consummated or
terminated. The vendor may require a minimum number of exchanges
between the buyer and the seller to permit the haggling process
would continue, but risks losing the buyer's interest.
[0046] FIG. 6 illustrates another embodiment to the haggle process
shown in FIG. 4. Consequently, we have included similar reference
numerals. This alternative 98 creates a bulk haggling scenario
which would enable buyers of multiple items associated with one or
more of the vendors to counter offer a total price off the
calculated stated retail price of all of the items. As was true
with respect to FIG. 4, a haggle table is constructed at step 58.
This haggle table consists of the exact table or tables created
with respect to the algorithm of FIG. 4. If a buyer selects
multiple goods to be purchased, the intermediary would provide the
buyer with a total retail price for all the goods, as well as
internally calculates the total minimum sale prices at step 102 to
form the required pricing points to haggle. The buyer would then
make an offer to the intermediary for all of the goods at step 104.
At this time, the intermediary would determine whether the offer is
greater than the total minimum sale price and would determine
whether minimal exchange has occurred at step 64. If this is not
the case, the desired discount amount as well as the most discount
offered or most percentage discount offered for each of the items
would be determined at step 68 and the comparison similar to what
is described with respect to FIG. 4 is made at step 70. The
discount haggle is multiplied by the most discount offered and
subtracted from the total retail price to determine the counter
offer at step 72. A counter offer is then made and haggling is
either discontinued and a sale consummated or the haggling would
continue in a similar manner. If the buyer's offer to the
intermediary at step 104 is greater than the total minimum sale
price, the sale of all of the items could be consummated at that
point or, similar to the scenario described with respect to FIG. 4,
if the vendor or vendors would insist upon a predetermined number
of exchanges between the buyer and seller, the haggling process
would continue. It is noted that each of the vendors would have an
option as to whether they wish to engage in this bulk haggling
feature. By aggregating potential discounts, vendors will have the
opportunity to institute a cooperative selling method and provide
larger total discounts to the buyers, thereby benefiting both
buyers and vendors by creating incentives to buy and sell more
items.
[0047] Particularly if more than one vendor is involved in the bulk
haggling process, it is important to partition the discount haggle
for each of the purchase items which is shown at step 120. This is
necessary since there is a potential for the buyer to return one or
more items of the total number of items purchased utilizing this
method. Should a buyer desire to return one or more of the bulk
haggled items, a definitive price must be stated to permit credit
or exchange.
[0048] This cooperative selling method aggregates the total most
discount offered to potentially award a larger overall discount on
the total purchase. The buyer can take advantage of the aggregate
most discount offered and maximize the buyer's discount haggle to
thereby help consummate sales at a maximum value. The intermediary
would maintain a running count of the total discount haggle and
calculate at what price each item is finally sold by determining
the individual discount haggle. The intermediary is also able to
provide a final sale price for each item by first apportioning from
the total sale price the minimum sale price for each purchased item
and then calculating and apportioning the dollar value of the
remaining individual discount haggle on top of the minimum sale
price. The individual dollar value of the discount haggle is
derived by calculating the individual most discount offered for
that item and dividing it by the aggregate most discount offered
giving the portion of the discount that item offers to the bulk
haggle and multiplying that amount by the amount above the
aggregate minimum sale price. This amount of the aggregate minimum
sale price equals the total final sale price minus the aggregate
minimum sale price of the desired items to be purchased. Note that
the final sale price must always be above the aggregate minimum
sale price since no individual item may be sold below its minimum
sale price.
[0049] In all of the embodiments discussed, the most discount
offered is constantly updated after each round of haggling to
reflect the amount of discount haggled (discount already
negotiated) by the buyer in the preceding rounds of haggling.
Additionally, the running count of each and every negotiation is
valuable for business and marketing analysis and study, as well as
a means to trigger a final offer from the intermediary.
[0050] It will be apparent to those skilled in the art that various
modifications and variations can be made to the system and method
of the present invention without departing from the scope or spirit
of the invention. Thus, it is intended that the present invention
cover the modifications and variations of this invention provided
that they come within the scope of the claims and their
equivalents.
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