Method and system for automated control of pricing

• US 20050197897A1
• Filed: 07/28/2004
• Published: 09/08/2005
• Est. Priority Date: 03/08/2004
• Status: Active Grant

• Current Assignee: SAP SE
• Original Assignee: SAP AG (SAP SE)
• Inventors: Veit, Thomas, Roth, Thomas, Wannemacher, Ines, Ziehl, Susanne
• Granted Patent: US 8,051,015 B2
• Time in Patent Office: Days
• US Class Current: 705/14.24
• CPC Class Codes: G06Q 30/0206 Price or cost determination based on market factors
• CPC Class Codes: G06Q 30/0223 based on inventory
• CPC Class Codes: G06Q 30/0235 constrained by time limit or expiration date
• CPC Class Codes: G06Q 30/0283 Price estimation or determination

Abstract

A method, program product and system for automated control of pricing of a product or service. The method includes determining an initial price of the product, monitoring actual sales of the product at retail outlets, and adjusting the initial price during a selling season of said product based on the actual sales of the product. The method can further include accepting input from a historical price database, and determining the initial price using historical prices of the product or a similar product. The method can further include repeatedly adjusting a price of the product during a selling season based on the actual sales of the product. The method can further include applying a markdown to the price of the product and using a markdown profile to determine the markdown. The method can further include performing slow seller analysis to determine the markdown. The determination that a product is a slow seller can be made by applying a predetermined rule set to the product.

Claims

1. An automated method of controlling pricing of a product, comprising:

determining an initial price of said product;

monitoring actual sales of said product at retail outlets; and

adjusting said initial price during a selling season of said product based on said actual sales of said product.

2. An automated method of controlling pricing of a product according to claim 1, said step of determining an initial price of a said product further comprising:

accepting input from a historical price database; and

determining said initial price using historical prices of said product or a similar product.

3. An automated method of controlling pricing of a product according to claim 1, further comprising repeatedly adjusting a price of said product during a selling season based on said actual sales of said product.

4. An automated method of controlling pricing of a product according to claim 1, said step of adjusting said initial price comprises determining a markdown to be applied to a price of said product.

5. An automated method of controlling pricing of a product according to claim 4, where a markdown profile is used to determine said markdown.

6. An automated method of controlling pricing of a product according to claim 4, wherein slow seller analysis is performed to determine said markdown

7. An automated method of controlling pricing of a product according to claim 6, wherein said step of adjusting said initial price further comprises:

determining if said product is a slow seller;

determining a markdown to be applied to a price of said product;

reconciling a markdown budget with said determined markdown to be applied to said price to determine whether said markdown will be applied; and

adjusting said price of said product by said markdown.

8. An automated method of controlling pricing of a product according to claim 7, wherein said step of determining if said product is a slow seller further comprises applying a predetermined rule set to said product.

9. An automated method of controlling pricing of a product according to claim 1, further including comparing said actual sales of said product to expected sales of said product, and wherein said step of adjusting said initial price is based on said comparison.

10. An automated method of controlling pricing of a product according to claim 9, further including monitoring a time period during which said product has been on sale at said initial price, and wherein said step of adjusting said initial price is based on said time period.

11. An automated method of controlling pricing of a product, comprising:

monitoring actual sales of said product at retail outlets by accepting sales data from a plurality of retail outlet computers; and

adjusting a retail price of said product during a selling season of said product based on said actual sales of said product by sending a price update to said plurality of retail outlet computers.

12. An automated system for controlling pricing of a product, comprising:

an initial price determination engine configured to determine the initial price of said product;

an actual sales monitoring engine configured to monitor actual sales of said product at retail outlets; and

a price adjustment engine configured to adjust said initial price during a selling season of said product based on said actual sales of said product.

13. An automated system for controlling pricing of a product according to claim 12, said initial price determination engine is further configured to:

accept input from a historical price database; and

determine said initial price using historical prices of said product or a similar product.

14. An automated system for controlling pricing of a product according to claim 12, wherein said price adjustment engine is further configured to repeatedly adjust a price of said product during a selling season based on said actual sales of said product.

15. An automated system for controlling pricing of a product according to claim 12, wherein said price adjustment engine is further configured to determine a markdown to be applied to a price of said product.

16. An automated system for controlling pricing of a product according to claim 15, wherein said price adjustment engine is further configured to use a markdown profile to determine said markdown.

17. An automated system for controlling pricing of a product according to claim 15, wherein said price adjustment engine is further configured to perform slow seller analysis to determine said markdown

18. An automated system for controlling pricing of a product according to claim 17, wherein said price adjustment engine is further configured to:

determine if said product is a slow seller;

determine a markdown to be applied to a price of said product;

reconcile a markdown budget with said determined markdown to be applied to said price to determine whether said markdown will be applied; and

adjust said price of said product by said markdown.

19. An automated system for controlling pricing of a product according to claim 18, wherein said price adjustment engine is further configured to determine if said product is a slow seller by applying a predetermined rule set to said product.

20. An automated system for controlling pricing of a product according to claim 12, wherein said price adjusting engine is further configured to compare said actual sales of said product to expected sales of said product to determine whether said product is a slow seller.

21. An automated system for controlling pricing of a product according to claim 20, wherein said price adjusting engine is further configured to monitor a time period during which said product has been on sale at said initial price to determine whether said product is a slow seller.

22. An automated system for controlling pricing of a product, comprising:

means for determining an initial price of said product;

means for monitoring actual sales of said product at retail outlets; and

means for adjusting said initial price during a selling season of said product based on said actual sales of said product.

23. A program product for controlling pricing of a product, said program product comprising machine-readable program code for causing, when executed, one or more machines to perform the following method steps:

determining an initial price of said product;

monitoring actual sales of said product at retail outlets; and

adjusting said initial price during a selling season of said product based on said actual sales of said product.