Dynamic pricing system

• US 20050139662A1
• Filed: 02/25/2005
• Published: 06/30/2005
• Est. Priority Date: 02/27/2002
• Status: Abandoned Application

• Current Assignee: Digonex Technologies Incorporated (Emmis Communications Corporation)
• Original Assignee: Digonex Technologies Incorporated (Emmis Communications Corporation)
• Inventors: Bakke, Justin, Switzer, Tobias, Eglen, Jan
• Application Number:
  US11/067,234
• Publication Number:
  US 20050139662A1
• Time in Patent Office: Days
• US Class Current: 235/383
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions

Abstract

A system for dynamically pricing shelved products in a physical store and/or products available for order in a virtual store. The system dynamically sends prices for a product to a price display unit positioned near the product, and receives reports of sale for the product from a checkout station. Based on the data in the reports, and the timing of the reports, the system dynamically determines the price for the product. For products available for order, the system presents the dynamic prices for the product on a terminal, and receives reports of sale from the terminal.

Claims

1. A method for dynamically adjusting a price, comprising:

sending a first price of a product from a processor to a price display unit positioned near the product;

receiving a report of sale for the product at the first price from a checkout station with the processor;

determining with the processor, based at least on the report of sale for the product at the first price, a first profit at the first price;

determining with the processor that the first profit is less than a previous profit at a previous price;

pricing the product at a second price with the processor; and

sending the second price to the display unit.

2. The method of claim 1, wherein pricing the product at a second price comprises setting the second price as a random percentage above the first price.

3. The method of claim 1, wherein pricing the product at a second price comprises setting the second price to a lower price than the first price.

4. The method of claim 1, wherein pricing the product at a second price comprises setting the second price to a higher price than the first price.

5. The method of claim 1, wherein pricing the product at a second price comprises setting the second price to a price halfway between the first price and a best price at which a best profit was previously obtained.

6. The method of claim 1, wherein pricing the product at a second price comprises:

determining a difference between a best price at which a best profit was obtained and the first price is less than a minimum limit; and

setting the second price to a randomly adjusted price within a range about the best price.

7. The method of claim 6, wherein the minimum limit is one-percent of the best price.

8. The method of claim 1, wherein pricing the product at a second price comprises determining with the processor the second price based on time between sales of the product.

9. The method of claim 1, further comprising receiving a report of sale for the product at the second price.

10. The method of claim 9, wherein pricing the product at a second price comprises determining the second price based on an elapsed time between receiving the report of sale for the product at the first price and receiving the report of sale for the product at the second price.

11. The method of claim 10, wherein pricing the product at a second price comprises determining an average time between receiving reports of sale.

12. The method of claim 11, wherein pricing the product at a second price comprises determining that the time between receiving reports of sale at the first price is less than the average time between orders, and setting the second price to a higher price than the first price.

13. The method of claim 11, wherein pricing the product at a second price comprises determining that the time between receiving reports of sale at the first price is less than the average time between orders, and setting the second price to a lower price than the first price.

14. The method of claim 1, wherein the first price is an initial price.

15. The method of claim 14, further comprising setting the initial price with the processor based on historical data for the product.

16. The method of claim 1, wherein the first price is determined by input from an operator.

17. The method of claim 1, further comprising receiving a minimum price for the product, wherein pricing the product at a second price comprises setting the second price of the product to the minimum price for the product.

18. The method of claim 1, further comprising receiving a cost price for the product from a supplier of the product, and setting a minimum price with the processor based on the cost price of the product.

19. The method of claim 18, wherein pricing the product at a second price comprises setting the second price of the product to the minimum price for the product.

20. The method of claim 1, further comprising receiving a cost price for the product from a supplier of the product, and setting a maximum price with the processor based on the cost price of the product.

21. The method of claim 20, wherein pricing the product at a second price comprises setting the second price of the product to the maximum price for the product.

22. An apparatus, comprising:

a first interface, the first interface operable to send a first price of a product to a price display unit positioned near the product;

a second interface, the second interface operable to receive a report of sale for the product at the first price from a checkout station;

a processor coupled to the first interface and the second interface, the processor operable to determine, based on the report of sale, a difference between a first profit at the first price and a previous profit at a previous price, and to price the product at a second price; and

a third interface coupled to the processor, the third interface operable to send the second price to the price display unit.

23. The apparatus of claim 22, wherein the first interface, the second interface, and the third interface are each a network interface.

24. The apparatus of claim 23, wherein the first interface, the second interface, and the third interface are a single interface.

25. The apparatus of claim 22, wherein the first interface, the second interface, and the third interface are a single interface.

26. The apparatus of claim 22, wherein the processor is operable to format the first price, and to communicate the first price to the first interface.

27. The apparatus of claim 22, wherein the processor is operable to format the second price, and to communicate the second price to the third interface.

28. The apparatus of claim 22, further comprising a memory coupled to the processor, wherein the report of sale comprises a plurality of reports of sale, and the memory comprises software that causes the processor to determine the second price based on a quantity of reports of sale received by the second interface.

29. The apparatus of claim 22, further comprising a memory coupled to the processor, wherein the report of sale comprises a plurality of reports of sale, and the memory comprises software that causes the processor to determine the second price based on an average lapse of time between receptions of reports of sale by the second interface.

30. The apparatus of claim 22, further comprising:

a fourth interface coupled to the processor, the fourth interface operable to receive a cost price of the product from a supplier; and

a memory coupled to the processor, wherein the memory comprises software that causes the processor to set a maximum price for the product based on the cost price of the product.

31. The apparatus of claim 30, wherein the first interface, the second interface, the third interface, and the fourth interface are each a network interface.

32. The apparatus of claim 31, wherein the first interface, the second interface, the third interface, and the fourth interface are a single interface.

33. An apparatus, comprising:

a computer readable medium encoded with a program executable by a computer, the program being executable to cause the computer to;

send a first price of a product to a price display unit positioned near the product;

receive a report of sale for the product at the first price from a checkout station;

determine, based at least on the report of sale for the product at the first price, a first profit;

determine that the first price is less than a previous profit at a previous price;

price the product at a second price; and

send the second price to the display unit.

34. The apparatus of claim 33, wherein the program is further executable to cause the computer to determine the second price based at least on a quantity of reports of sale received.

35. The apparatus of claim 33, wherein the program is further executable to cause the computer to determine the second price based at least on a period of time between reception of reports of sale.

36. A signal communicating data with a computer, the data comprising:

a first price of a product sent from the computer to a price display unit positioned near the product;

a report of sale for the product at the first price received by the computer from a checkout station; and

a second price sent from the computer to the price display unit, wherein the second price is determined by the computer, based at least on the report of sale for the product at the first price and on a previous profit at a previous price.

37. A method for dynamically adjusting a price, comprising:

sending a first price of a product from a processor to a price display unit positioned near the product;

receiving a first plurality of reports of sale for the product at the first price over a first period of time from a checkout station with the processor;

calculating a first profit for the first period of time based on the first plurality of reports of sale with the processor;

calculating a profit difference between the first profit for the first period of time and a previous profit for a previous period of time with the processor;

pricing the product at a second price with the processor when the profit difference is greater than zero; and

sending the second price to the price display unit.

38. The method of claim 37, wherein pricing the product at a second price comprises setting the second price as a random percentage above the first price.

39. The method of claim 37, wherein pricing the product at a second price comprises setting the second price to a lower price than the first price.

40. The method of claim 37, wherein pricing the product at a second price comprises setting the second price to a higher price than the first price.

41. The method of claim 37, wherein pricing the product at a second price comprises setting the second price to a price halfway between the first price and a best price at which a best profit was previously obtained.

42. An apparatus, comprising:

a first interface, the first interface operable to send a first price of a product to a price display unit positioned near the product;

a second interface, the second interface operable to receive a first plurality of reports of sale for the product at the first price over a first period of time from a checkout station;

a processor coupled to the first interface and the second interface, the processor operable to calculate a first profit for the first period of time at the first price based on the first plurality of reports of sale and a profit difference between the first profit for the first period of time and a previous profit for a previous period of time, and to price the product at a second price when the profit difference is greater than zero; and

a third interface coupled to the processor, the third interface operable to send the second price to the price display unit.

43. The apparatus of claim 42, wherein the first interface, the second interface, and the third interface are each a network interface.

44. The apparatus of claim 43, wherein the first interface, the second interface, and the third interface are a single interface.

45. The apparatus of claim 42, wherein the first interface, the second interface, and the third interface are a single interface.

46. The apparatus of claim 42, wherein the processor is operable to format the first price, and to communicate the first price to the first interface.