U.S. patent application number 09/843550 was filed with the patent office on 2009-02-26 for pricing engine for electronic commerce.
Invention is credited to Raymond S. Bamford, Sam W. Gabriel.
Application Number | 20090055328 09/843550 |
Document ID | / |
Family ID | 40364685 |
Filed Date | 2009-02-26 |
United States Patent
Application |
20090055328 |
Kind Code |
A1 |
Bamford; Raymond S. ; et
al. |
February 26, 2009 |
PRICING ENGINE FOR ELECTRONIC COMMERCE
Abstract
A pricing engine for electronic commerce allows the owner of an
electronic market place to dynamically change the pricing available
at the electronic market place based on several factors including,
but not limited to, manufacturer preferences, distributor
preferences, e-market place preferences, the location of a buyer,
identity of a buyer, order volume, and so on. A buyer can access
the e-market place through the Internet, Input a request for quote,
and then receive a price schedule based on the above factors.
Inventors: |
Bamford; Raymond S.; (San
Diego, CA) ; Gabriel; Sam W.; (San Diego,
CA) |
Correspondence
Address: |
Womble Carlyle Sandridge & Rice, PLLC;Oracle International Corporation
Attn: Patent Docketing 32nd Floor, Post Office Box 7037
Atlanta
GA
30357-0037
US
|
Family ID: |
40364685 |
Appl. No.: |
09/843550 |
Filed: |
April 26, 2001 |
Current U.S.
Class: |
705/400 |
Current CPC
Class: |
G06Q 30/0283 20130101;
G06Q 30/00 20130101; G06Q 40/04 20130101 |
Class at
Publication: |
705/400 |
International
Class: |
G06Q 99/00 20060101
G06Q099/00 |
Claims
1. A computer-implemented method for determining a price of goods
made by a manufacturer in response to at least one electronic price
request from a buyer for the goods, comprising the acts of:
receiving the electronic price request from the buyer; in response
to the electronic price request, performing a computer-executed act
of determining whether title to the goods passes directly from the
manufacturer to the buyer or through an intermediate e-market
place; computing a price of the goods to the buyer based at least
partially on the determining act; providing the buyer with a
machine-readable signal for displaying the computed price.
2. The method of claim 1, wherein a first pricing regime is
implemented when it is determined that title to the goods passes
directly from the manufacturer to the buyer.
3. The method of claim 2, wherein when it is determined that title
passes through an intermediate e-market place, the method further
includes determining whether to implement the first pricing regime
or a second pricing different than the first pricing regime.
4. The method of claim 3, further comprising the act of:
determining whether to discount a price.
5. The method of claim 4, wherein a discount is determined based on
at least one of: volume of a current order, volume of annual
orders, and projected volume of orders.
6. The method of claim 4, wherein a discount is determined based on
at least one of: an advance scheduling of an order, an industry
segment of the buyer, a credit rating of the buyer, and a
stocking/handling charge.
7. The method of claim 3, further comprising the act of:
determining whether to customize a price.
8. The method of claim 7, wherein the price is customized based on
at least one of: geographic region, customer information, product
line information, manufacturer information.
9. A computer having logic executable by the computer to perform
method acts for determining a price of goods made by a manufacturer
in response to at least one electronic price request from a buyer
for the goods, said method acts comprising: receiving the
electronic request from the buyer; in response to the electronic
request, determining whether title to the goods passes directly
from a manufacturer to a buyer or through an intermediate e-market
place; computing a price of the goods to the buyer based at least
partially on the determining act; providing the buyer with a
machine-readable signal for displaying the computed price.
10. The computer of claim 9, further including logic for executing
a method act comprising: implementing a first pricing regime when
it is determined that title to the goods passes directly from the
manufacturer to the buyer.
11. The computer of claim 10, further including logic for executing
a method act comprising: when it is determined that title passes
through an intermediate e-market place, determining whether to
implement the first pricing regime or a second pricing regime.
12. The computer of claim 11, further including logic for executing
a method act comprising: determining whether to discount a
price.
13. The computer of claim 12, wherein a discount is based on at
least one of: volume of a current order, volume of annual orders,
and projected volume of orders.
14. The computer of claim 12, wherein a discount is based on at
least one of: an advance scheduling of an order, an industry
segment of the buyer, a credit rating of the buyer, and a
stocking/handling charge.
15. The computer of claim 11, further including logic for executing
a method act comprising: determining whether to customize a
price.
16. The computer of claim 15, wherein the price is customized based
on at least one of: geographic region, customer information,
product line information, manufacturer information.
17. A computer program product having logic means executable by a
computer to determine a price of goods made by a manufacturer in
response to at least one electronic price request from a buyer fo
the goods, comprising. computer readable code means for receiving
the electronic price request from the buyer; computer readable code
means responsive to receiving the electronic price request for
determining whether title to the goods passes directly from the
manufacturer to the buyer or through an intermediate e-market
place; computer readable code means for computing a price of the
goods to the buyer based at least partially on the determining;
computer readable code means for providing the buyer with a
machine-readable signal for displaying the computed price.
18. The computer program product of claim 17, further including:
computer readable code means for implementing a first pricing
regime when it is determined that title to the goods passes
directly from a manufacturer to a buyer.
19. The computer program product of claim 18, further including:
computer readable code means for determining whether to implement
the first pricing regime or a second pricing regime when it is
determined that title passes through an intermediate
e-marketplace.
20. The computer program product of claim 19, further including:
computer readable code means for determining whether to discount a
price.
21. The computer program product of claim 20, wherein a discount is
based on at least one of: volume of a current order, volume of
annual orders, and projected volume of orders.
22. The computer program product of claim 21, wherein a discount is
based on at least one of: an advance scheduling of order, an
industry segment of the buyer, a credit rating of the buyer, and a
stocking/handling charge.
23. The computer program product of claim 19, further including:
computer readable code means for determining whether to customize a
price.
24. The computer program product of claim 23, wherein the price is
customized based on at least one of: geographic region, customer
information, product line information, manufacturer information
25. At least one digital data processing machine programmed to
cooperatively perform operations for determining a price of goods
made by a manufacturer in response to at least one electronic
request for quote (RFQ) from a prospective buyer of the goods, the
operations comprising: receiving from the buyer an electronic
message comprising an RFQ; responsive to receiving the RFQ,
determining a price of the goods based at least partially upon a
manufacturer's specification as to whether title to the goods will
pass directly from the manufacturer to the buyer or through an
intermediate; transmitting an electronic message representing the
determined price to the buyer.
Description
FIELD OF THE INVENTION
[0001] The present invention relates generally to e-commerce.
BACKGROUND
[0002] In e-commerce orders for goods can be placed with an
electronic market place ("e-market place") who might sell goods
through the Internet from many manufacturers. As understood by the
present invention, each manufacturer might have its own title and
pricing policy. Some manufacturers, for instance, might desire that
the e-market place actually take interim title to the goods, while
other manufacturers might desire title to pass directly from the
manufacturer to the buyer. As further understood herein, a variable
that flows from the manufacturer's title passing preferences is
that of pricing, i.e., whether the manufacturer determines the
final price, or the e-market place. Moreover, the present invention
recognizes that in establishing a price for a customer, it might be
desirable to vary or discount the price on the basis of a great
many factors, including location of the buyer, identity of the
buyer, order volume, and so on. Often, these factors are not
static, so the e-market place must constantly update its pricing
mechanism.
[0003] With the above discussion in mind, the present invention
makes the critical observation that an e-market place which sells
products from perhaps hundreds of manufacturers while taking into
account various and ever-changing pricing permutations and
combinations must have a convenient and reliable mechanism to
determine price, preferably at the time an electronic order is
placed. The present invention, in making the above observation,
presents the solution disclosed herein.
SUMMARY OF THE INVENTION
[0004] A computer-implemented method for determining a price of
goods made by a manufacturer in response to at least one electronic
order from a buyer for the goods, includes receiving the order and
then determining whether title to the goods passes directly from
the manufacturer to the buyer or through an intermediate e-market
place. The price of the goods is based at least partially on the
determining act and is displayed to the user.
[0005] In a preferred embodiment, a first pricing regime is
implemented when it is determined that title to the goods passes
directly from the manufacturer to the buyer. Moreover, when it is
determined that title passes through an intermediate e-market
place, the method further includes determining whether to implement
the first pricing regime or a second pricing regime. Preferably,
the method includes a step to determine whether to discount a
price. In the preferred embodiment, the discount is determined
based on at least one of: volume of a current order, volume of
annual orders, and projected volume of orders. The discount may
also be determined based on at least one of: an advance scheduling
of the order, an industry segment of the buyer, a credit raring of
the buyer, and a stocking/handling charge.
[0006] In a preferred embodiment, the method also includes a step
to determine whether to customize a price, and the price is
customized based on at least one of: geographic region, customer
information, product line information, manufacturer
information.
[0007] In another aspect of the present invention, a computer
includes logic for executing methods acts that include receiving an
order for goods and determining whether title to the goods passes
directly from a manufacturer to a buyer or through an intermediate
e-market place. In this aspect, the price of the goods is based at
least partially on the determining act and is displayed to the
buyer.
[0008] In yet another aspect of the present invention, a computer
program product includes logic means that include computer readable
code means for receiving a buyer order for goods. Also, the
computer program product includes computer readable code means for
dynamically determining whether to implement a first price or a
second price based at least partially on title information. This
aspect of the present invention further includes computer readable
code means for displaying a price of the goods to the buyer.
[0009] The details of the present invention, both as to its
structure and operation, can best be understood in reference to the
accompanying drawings, in which like reference numerals refer to
like parts, and in which:
BRIEF DESCRIPTION OF THE DRAWINGS
[0010] FIG. 1 is a schematic diagram of the architecture of the
present invention;
[0011] FIG. 2 is a flow chart of the overall logic;
[0012] FIG. 3 is a flow chart of the overall title and pricing
logic;
[0013] FIG. 4 is a flow chart of the general customization logic
that can be applied to the title rule and/or the pricing rule;
[0014] FIG. 5 is flow chart of the pricing logic followed by the
e-market place, a manufacturer, or a distributor; and
[0015] FIG. 6 is a flow chart of the pricing discount logic.
DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT
[0016] Referring initially to FIG. 1, a system for e-commerce
pricing is shown, generally designated 10. In the particular
architecture shown, the system 10 includes a manufacturer computer
12, a distributor computer 14 and a customer computer 16, which are
part of the computer network 18 referred to as the Internet. FIG. 1
shows only one manufacturer computer 12, one distributor computer
14, and one customer computer 16, but it is to be understood that
many manufacturer computers 12, distributor computers 14, and
customer computers 16 may be part of the below described
system.
[0017] FIG. 1 also show as e-market place computer 20 and an
administrative interface computer 22 that are in communication with
the manufacturer computer 12, the distributor computer 14, and
customer computer 16 via the computer network 18. In one intended
embodiment, the computers 12, 14, 16, 20, 22 may be Web servers or
personal computers, or the computers 12, 14, 16, 20, 22 may be any
computer, including computers sold under trademarks such as AS400,
with accompanying IBM Network Stations. Or, the computers 12, 14,
16, 20, 22 may be Unix computers, workstations, or laptop
computers, or mainframe computers, or any other suitable computing
device. In the preferred embodiment, the computers 12, 14, 16, 20,
22 can communicate with each other through the network 18 via a
modem, LAN, WAN, or other network device.
[0018] Referring again to FIG. 1, the e-market place computer 20
includes a local or remote title/pricing module 24 that embodies
the logic disclosed herein and is used to determine the pricing
schedule received by a customer seeking to purchase goods through
the e-market place. As shown in FIG. 1, the e-market place computer
20 can access a database 26 of manufacturer pricing, distributor
pricing, e-market place pricing, and product data. The pricing
information stored in the database 26 can be received from a
manufacturer or distributor directly or via the computer network
18. Moreover, an extraction tool 28, which is connected to the
e-market place computer 20, can be used to contact the manufacturer
computer 12 or distributor computer 14 and extract the pricing
information needed by the e-market place computer 20.
[0019] As intended by the present invention, a customer can input a
request for quote (RFQ) to the e-market place computer 20 via the
computer network 18 and receive a price schedule according to the
rules outlined below. Also, as intended by the present invention, a
manufacturer or distributor can customize the title rules or
pricing rules, described below, by contacting the administrative
interface computer 22, via the computer network 18. In turn, the
administrative interface computer 22 transmits any changes by the
manufacturer or distributor to the e-market place computer 20. If
desired, the functions of the administrative interface computer 22
can be integrated into the e-market place computer 20.
[0020] The module 24 may be executed by a processor within the
e-market place computer 20 as a series of computer-executable
instructions. These Instructions may reside, for example, in RAM of
the e-market place computer 20, which, when programmed with the
present logic, establishes a computer program product.
[0021] Alternatively, the instructions may be contained on a data
storage device with a computer readable medium, such as a computer
diskette having a data storage medium holding computer program code
elements. Or, the instructions may be stored on a DASD array,
magnetic tape, conventional Had disk drive, electronic read-only
memory, optical storage device, or other appropriate data storage
device. In an illustrative embodiment of the invention, fee
computer-executable instructions may be lines of compiled C++
compatible code or Java code or more preferably extensible markup
language (XML). As yet another equivalent alternative, the logic cm
be embedded in an application specific integrated circuit (ASIC)
chip or other electronic circuitry, it is to be understood that the
system 10 can include peripheral computer equipment known in the
art, including output devices 30 such as a video monitor or printer
and input devices such as a computer keyboard and mouse. Other
output devices can be used, such as other computers, and so on.
Likewise, other input devices can be used, e.g., trackballs,
keypads, touch screens, and voice recognition devices.
[0022] Referring now to FIG. 2, the overall logic of the present
invention can be seen. Commencing at block 40, customer information
is input. Also, at block 42, order information is input, and at
block 44, a credit check can be performed to determine the credit
rating of the customer seeking the RFQ. Then, the logic moves to
block 46 where it is determined who takes title and who sets the
price of the goods that are the subject of the RFQ. The logic then
continues to block 48 where a price schedule is transmitted to the
customer.
[0023] Referring to FIG. 3, the overall title and pricing logic is
shown and commences at decision diamond 60, wherein it is
determined whether to customize the title rule. If the title rule
is to be customized, The logic proceeds to FIG. 5. If not, the
logic moves to decision diamond 62 where it is determined whether
the e-market place takes title of the goods. If the e-market place
takes title of the goods, then the logic continues to decision
diamond 64, where it is determined whether the e-market place
determines the price of the goods. If the e-market place determines
the price of the goods, the logic proceeds to block 66, wherein
"e-market place determines price schedule" is returned. Thereafter,
at state 68 the logic continues to FIG. 4 where, as described
below, the e-market place can customize the price schedule and/or
discount the prices transmitted to the customer. After any
customization or discounts are applied, the logic returns to FIG. 3
and proceeds to block 70 where a price schedule is transmitted to
the customer.
[0024] If, at decision diamond 64, it is determined that the
e-market place does not determine the price of the goods, the logic
moves to block 71, wherein "manufacturer determines price schedule"
is returned. After block 71, the logic continues to FIG. 4 at state
73 and the manufacturer can customize or discount the price
schedule to be transmitted at block 70.
[0025] Returning to decision diamond 62, if the e-market place does
not take title to the goods, the logic proceeds to decision diamond
72 where it is determined whether the manufacturer takes title to
the goods. If so, the logic continues to block 71. Otherwise, the
manufacturer does not take title to the goods, and the logic moves
to block 74, wherein "distributor takes title" is returned. After
the distributor takes title, the logic continues to decision
diamond 76 where it is determined whether the distributor
determines the price schedule. If the distributor does not
determine the price schedule, the logic loops to block 71 where the
manufacturer determines the price schedule. In contrast, if the
distributor does determine the price schedule, the logic moves to
blaock 78, wherein "distributor determines price schedule" is
returned. The logic then continues to FIG. 4 at state 75, where the
distributor can customize or discount the price schedule to be
transmitted at block 70.
[0026] Referring to FIG. 4, the pricing logic is shown and begins
at decision diamond 100 where it is determined whether to customize
the price schedule. If so, the logic proceeds to FIG. 5 and the
general customization logic is followed. If the price schedule is
not customized, the logic continues to decision diamond 102 where
it is determined whether to discount the prices shown in the price
schedule. If yes, the logic moves to FIG. 6 and the pricing
discount logic is followed. After the pricing discount logic is
followed, the logic returns to FIG. 3. It is to be understood, that
after the general customization logic is followed, the logic
returns to FIG. 4 to decision diamond 102, described above.
[0027] FIG. 5 shows the general customization logic that can be
applied to either the title rule or the pricing rule. The general
customization logic commences at decision diamond 110 where it is
determined whether to customize by geographic region. If yes, the
logic proceeds to block 112 where the geographic information is
input. Thereafter, the logic moves to block 114 and either the
title rule or pricing schedule is customized using the geographic
information. If, at decision diamond 110, it is decided not to
customize the title rule or pricing schedule using the geographic
information, or following block 114, the logic continues to
decision diamond 116.
[0028] At decision diamond 116, it is determined whether to
customize the title rule or pricing schedule by customer
information. If yes, the logic proceeds to block 118 where relevant
customer information is input. After the information is input at
block 118, the logic continues to block 120 where either title rule
or pricing schedule is customized using the customer information.
If the title rule or pricing schedule is not to be customized by
customer at decision diamond 116, or following block 120, the logic
continues to decision diamond 122.
[0029] At decision diamond 122, it is determined whether to
customize the title rule or pricing schedule by product line. If
yes, the logic proceeds to block 124 where product line information
is input. After the information is input at block 124, the logic
continues to block 126 where either title rule or pricing schedule
is customized using the product line information, if the title rule
or pricing schedule is not to be customized by product line at
decision diamond 122, or following block 126, the logic continues
to decision diamond 128.
[0030] At decision diamond 128, it is determined whether or not to
customize the title rule or pricing schedule by manufacturer. If
yes, the logic proceeds to block 130 where the manufacturer
information is input. After the manufacturer information is input
at block 130, the logic continues to block 132 where either title
rule or pricing schedule is customized by manufacturer. If the
title rule or pricing schedule is not to be customized by
manufacturer at decision diamond 116, or following block 120, the
logic returns to either FIG. 3 or 4. It is to be appreciated that
the decision diamonds shown in FIG. 5, i.e., the customization
options may be performed in any order.
[0031] Referring now to FIG. 6 the pricing discount logic is shown
and commences at decision diamond 140 where it is determined
whether to discount the pricing schedule by order. If not, the
logic proceeds to decision diamond 142 where it is determined
whether to apply an OEM discount. If, at decision diamond 140, it
is determined that a discount is to be applied to a base price
based on die order, the logic continues to decision diamond 144
where it is determined whether to apply a discount based on the
volume of the current order. If yes, the logic moves to block 146
and a discount based on the order is applied. If no, the logic
proceeds to decision diamond 148 where it is determined whether to
base the order discount on the annual volume of orders by the
customer seeking the RFQ. If an annual volume discount is to be
applied, the logic moves to block 146 and an order discount is
applied. If an annual volume discount is not applied, the logic
continues to decision diamond 150 where it is determined whether to
apply a projected volume discount. If yes, the logic moves to block
148 and an order discount is applied. If not, the logic proceeds to
decision diamond 142. While the above logic is shown in sequential
form flow, it is to be understood that equivalent state-logic is
contemplated here under.
[0032] If at decision diamond 142 it is determined that an OEM
discount is to be applied to a base price, the logic moves to block
154 where the OEM discount is applied. On the other hand, if an OEM
discount is not to be applied, the logic continues to decision
diamond 152 where it is determined whether to apply a discount for
advance scheduling of the order. If, at decision diamond 152, it is
determined to apply a discount for advance scheduling, the logic
proceeds to block 158 where the advance scheduling discount is
applied. In contrast, if it is determined not to apply a discount
for advance scheduling, the logic proceeds to decision diamond 156
where it is determined whether to apply an industry segment
discount. If so, the logic moves to block 162 where the industry
segment discount is applied.
[0033] If at decision diamond 156, an industry discount is not to
be applied the logic continues to decision diamond 160 where it is
determined whether to apply a credit discount. If the test at 160
is positive, the logic proceeds to block 166 where the credit
discount is applied. Also, at decision diamond 164, it is
determined whether to apply a stocking/handling discount. If so,
the logic moves to block 168 where the staking/handling discount is
applied. If not, the logic returns to FIG. 4. It is to be
appreciated that the credit discount may be a surcharge depending
on the customers credit rating. Moreover, the stocking/handling
discount may also be a surcharge. As before, while the above logic
is shown in sequential form flow, it is to be understood that
equivalent state-logic is contemplated here under.
[0034] With the configuration of structure described above, it is
to be appreciated that the pricing engine for electronic commerce
allows the owner of an electronic market place to price the goods
available in the electronic market place based on manufacturers
prices, distributor prices or the e-market place prices. Moreover,
a manufacture may override the e-market place prices and always
have the manufacturer's prices displayed to customers. As such, the
present invention provides a dynamic pricing system that may be
constantly updated and altered based on numerous factors, e.g., the
location of the buyer, identity of the buyer, order volume, and so
on.
[0035] While the particular PRICING ENGINE FOR ELECTRONIC COMMERCE
as herein shown and described in detail is fully capable of
attaining the above-described objects of the invention, it is to be
understood that it is the presently preferred embodiment of the
present invention and is thus representative of the subject matter
which is broadly contemplated by the present invention, that the
scope of the present invention fully encompasses other embodiments
which may become obvious to those skilled in the art, and that the
scope of the present invention is accordingly to be limited by
nothing other than the appended claims, in which reference to an
element in the singular is not intended to mean "one and only one"
unless explicitly so stated, but rather "one or more". All
structural and functional equivalents to the elements of the
above-described preferred embodiment that are known or later come
to be known to those of ordinary skill in the art are expressly
incorporated herein by reference and are intended to be encompassed
by the present claims. Moreover, it is not necessary for a device
or method to address each and every problem sought to be solved by
the present invention, for it to be encompassed by the present
claims. Furthermore, no element, component, or method step in the
present disclosure is intended to be dedicated to the public
regardless of whether the element, component, or method step is
explicitly recited in the claims. No claim element herein is to be
construed under the provisions of 35 U.S.C. .sctn.112, sixth
paragraph, unless the element is expressly recited using the phrase
"means or" or, in the case of a method claim, the element is
recited as a "step" instead of an "act".
* * * * *