Automated system for generating proposed markdown strategy and tracking results of proposed markdown

• US 20050256753A1
• Filed: 07/28/2004
• Published: 11/17/2005
• Est. Priority Date: 03/08/2004
• Status: Active Grant

• Current Assignee: SAP SE
• Original Assignee: SAP AG (SAP SE)
• Inventors: Zuerl, Ruediger, Veit, Thomas, Roth, Thomas, Wannemacher, Ines, Ziehl, Susanne
• Granted Patent: US 7,996,330 B2
• Time in Patent Office: Days
• US Class Current: 705/7
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0202 Market predictions or forecasting for commercial activities
• CPC Class Codes: G06Q 30/0211 Determining the effectiveness of discounts or incentives
• CPC Class Codes: G06Q 30/0283 Price estimation or determination
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]

Abstract

The present invention discloses a method, program product and system for controlling pricing of a product or service using a markdown profile. The method includes: selecting a markdown profile to be used for the product or service, selecting a retail price for the product or service, acquiring updated sales data regarding the product or service, determining a markdown to be applied to the price from the markdown profile using updated sales data, and reconciling a markdown budget with the determined markdown to be applied to said price to determine whether the markdown will be applied. The method can further include the step of adjusting a retail price of the product or service by the markdown.

Claims

1. A method of controlling pricing of a product or service using a markdown profile, comprising:

selecting a markdown profile to be used for said product or service;

selecting a retail price for said product or service;

acquiring updated sales data regarding said product or service;

determining a markdown to be applied to said price from said markdown profile using said updated sales data; and

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

2. A method of controlling pricing of a product or service using a markdown profile according to claim 1, further comprising the step of adjusting a price of said product or service by said markdown.

3. A method of controlling pricing of a product or service using a markdown profile according to claim 1, further comprising the step of calculating an allowable markdown that can be applied if it is determined in said reconciling step that said determined markdown will not be applied.

4. A method of controlling pricing of a product or service using a markdown profile according to claim 3, further comprising the step of adjusting a price of said product or service by said allowable markdown.

5. A method of controlling pricing of a product or service using a markdown profile according to claim 1, wherein said reconciliation step further comprises calculating an available markdown budget and determining whether application of said proposed markdown will cause a deficit in said available budget.

6. A method of controlling pricing of a product or service using a markdown profile according to claim 5, wherein said available budget is calculated by adding a planned budget and a cumulative budget and subtracting an exhausted budget.

7. A method of controlling pricing of a product or service using a markdown profile according to claim 1, wherein said markdown profile is selected based on an attribute of a product or service to be used for sale of said product or service.

8. A method of controlling pricing of a product or service using a markdown profile according to claim 7, wherein said attribute is at least one of product type, color, size, distribution channel and sales organization.

9. A system for controlling pricing of a product or service using a markdown profile, comprising:

means for selecting a markdown profile to be used for said product or service;

means for selecting a retail price for said product or service;

means for acquiring updated sales data regarding said product or service;

means for determining a markdown to be applied to said price from said markdown profile using said updated sales data; and

means for reconciling a markdown budget with said determined markdown to be applied to said price to determine whether said markdown will be applied.

10. A system for controlling pricing of a product or service using a markdown profile according to claim 9, further comprising means for adjusting a price of said product or service by said markdown.

11. A system for controlling pricing of a product or service using a markdown profile according to claim 9, further comprising means for calculating an allowable markdown that can be applied if it is determined by said means for reconciling that said determined markdown will not be applied.

12. A system for controlling pricing of a product or service using a markdown profile according to claim 11, further comprising means for adjusting a price of said product or service by said allowable markdown.

13. A system for controlling pricing of a product or service using a markdown profile according to claim 9, wherein said means for reconciling further comprises means for calculating an available markdown budget and determining whether application of said proposed markdown will cause a deficit in said available budget.

14. A system for controlling pricing of a product or service using a markdown profile according to claim 13, wherein said means for calculating calculates said available budget by adding a planned budget and a cumulative budget and subtracting an exhausted budget.

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

selecting a markdown profile to be used for said product or service;

selecting a retail price for said product or service;

acquiring updated sales data regarding said product or service;

determining a markdown to be applied to said price from said markdown profile using said updated sales data; and

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

16. A program product for controlling pricing of a product or service using a markdown profile according to claim 15, further comprising the step of adjusting a price of said product or service by said markdown.

17. A program product for controlling pricing of a product or service using a markdown profile according to claim 15, further comprising the step of calculating an allowable markdown that can be applied if it is determined in said reconciling step that said determined markdown will not be applied.

18. A program product for controlling pricing of a product or service using a markdown profile according to claim 17, further comprising the step of adjusting a price of said product or service by said allowable markdown.

19. A program product for controlling pricing of a product or service using a markdown profile according to claim 15, wherein said reconciliation step further comprises calculating an available markdown budget and determining whether application of said proposed markdown will cause a deficit in said available budget.

20. A program product for controlling pricing of a product or service using a markdown profile according to claim 19, wherein said available budget is calculated by adding a planned budget and a cumulative budget and subtracting an exhausted budget.

21. A program product for controlling pricing of a product or service using a markdown profile according to claim 15, wherein said markdown profile is selected based on an attribute of a product or service to be used for sale of said product or service.

22. A program product for controlling pricing of a product or service using a markdown profile according to claim 21, wherein said attribute is at least one of product type, color, size, distribution channel and sales organization.