E-commerce volume pricing

• US 20030126040A1
• Filed: 02/20/2003
• Published: 07/03/2003
• Est. Priority Date: 05/12/1999
• Status: Active Grant

• Current Assignee: Valentine Communications LLC
• Original Assignee: Ewinwin Incorporated
• Inventors: Mesaros, Gregory J.
• Granted Patent: US 7,124,099 B2
• Time in Patent Office: Days
• US Class Current: 705/26
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 30/0609 Buyer or seller confidence or verification
• CPC Class Codes: G06Q 30/0641 Shopping interfaces

Abstract

In the volume pricing methodology, a seller initially establishes a price structure for a product which provides for lower prices as larger quantities of the product are purchased. The price structure is electronically made available to potential buyers of the product. For example, the price structure may be displayed on an Internet site. The sellers further establish an “open session” period during which orders for the product are accepted. During the open session period, multiple buyers are able to place orders for the product up to a maximum available quantity. At the end of the open session, the total quantity of products collectively ordered by all of the buyers is calculated. Based on the total quantity ordered, the final price to all buyers is the lowest price provided from the price structure regardless of whether the lowest price had been reached at the time a particular buyer placed their order during the open session.

Claims

1. A method of costing, comprising the steps of:

electronically offering a product for sale;

receiving a first order for the product at a first price;

receiving a second order for the product at a second price, the second price being lower than the first price; and

accepting to fill the first order and the second order at a third price equal to or less than the second price.

2. The method of claim 1, wherein the price of the product is selected from a price schedule which varies as a function of total quantity of products ordered.

3. The method of claim 1, wherein the product is electronically offered for sale over the Internet.

4. The method of claim 3, wherein the first order is placed by a first buyer and the second order is placed by a second buyer different than the first buyer.

5. The method of claim 4, wherein the first buyer and the second buyer electronically registered to place orders for the product over the Internet.

6. The method of claim 4, wherein prior to filling the first order and the second order, payment for the first order and the second order is secured via credit lines extended to the first buyer and the second buyer.

7. The method of claim 1, wherein a seller sets an open session period during which orders for the product offered for sale electronically are accepted by the seller.

8. The method of claim 7, wherein a seller places a limit on a maximum quantity of the products offered for sale electronically.

9. The method of claim 8, wherein the third price is based on a total quantity of products ordered up to the limit during the open session.

10. A method of costing, comprising the steps of:

electronically offering a product for sale in accordance with a price schedule, the price schedule setting a price for the product which varies in accordance with a quantity of the product ordered;

receiving orders for the product from a plurality of different buyers;

calculating a total quantity of products ordered from the plurality of different buyers;

determining a lowest price for the product from the price schedule based on the total quantity of products ordered; and

accepting to fill the orders for each of the plurality of different buyers at the lowest price.

11. The method of claim 10, wherein a first of the plurality of buyers placed an order for a first quantity of the product at a first price and a second of the plurality of buyers placed an order for a second quantity of the product at a second price, the first price being greater than the second price.

12. The method of claim 11, wherein the step of electronically offering a product for sale is limited to an open session period corresponding to a time during which orders to purchase the product are accepted.

13. The method of claim 12, wherein the step of electronically offering a product for sale includes a limit on a maximum number of products available for sale.

14. The method of claim 13, wherein the step of receiving orders is limited to a quantity of orders received during the open session up to the maximum number of products available.

15. The method of claim 10, wherein the product is electronically offered for sale over the Internet.

16. The method of claim 15, wherein the product offered for sale is displayed to buyers entering a deal room on the Internet in which information related to current price of the product is displayed.

17. The method of claim 16, wherein access to the deal room is limited to buyers who electronically registered on the Internet to gain access to the deal room and have a pre-approved line of credit.

18. A server, comprising:

a processor;

a memory coupled to the processor; and

a network interface coupled to the processor for transmitting and receiving data with at least one remote computer system;

wherein a price schedule for a product offered for sale electronically is stored in the memory, the price schedule providing a price for the product which varies in accordance with a quantity of the product ordered, and wherein the server is configured to receive orders for the product from a plurality of different buyers via the at least one remote computer system, calculate a total quantity of products ordered from the plurality of different buyers, and determine a lowest price for the product from the price schedule based on the total quantity of products ordered.

19. The server of claim 18, wherein the server is configured to provide the plurality of different buyers access to view the lowest price via one or more of the at least one remote computes.

20. The server of claim 18, wherein the server is configured to limit a period during which orders for the product are accepted to an open session period.

21. A system for conducting business electronically, comprising:

a central server;

at least one computer system coupled to the server via a network;

wherein a price schedule for a product offered for sale electronically is stored in the central server, the price schedule providing a price for the product which varies in accordance with a quantity of the product ordered, and wherein the server is configured to receive orders for the product from a plurality of different buyers via the at least one remote computer system, calculate a total quantity of products ordered from the plurality of different buyers, and determine a lowest price for the product from the price schedule based on the total quantity of products ordered.

22. The system of claim 21, wherein a first of the plurality of different buyers places an order for a first quantity of the product at a first price and a second of the plurality of different buyers placed an order for a second quantity of the product at the second price, the first price being greater than the second price.

23. The system of claim 22, wherein the server is configured to provide each of the plurality of buyers access to view the lowest price via the at least one remote computer.