SYSTEM AND METHODS FOR BUSINESS TO BUSINESS PRICE MODELING USING PRICE CHANGE OPTIMIZATION

• US 20080059280A1
• Filed: 08/29/2006
• Published: 03/06/2008
• Est. Priority Date: 08/29/2006
• Status: Active Grant

• Current Assignee: Vendavo, Inc.
• Original Assignee: Vendavo, Inc.
• Inventors: Tellefsen, Jens E., Kachani, Soulaymane
• Granted Patent: US 7,680,686 B2
• Time in Patent Office: Days
• US Class Current: 705/10
• 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 30/0206 Price or cost determination based on market factors
• CPC Class Codes: G06Q 30/0283 Price estimation or determination

Abstract

The present invention relates to business to business market price control and management systems. More particularly, the present invention relates to systems and methods for generating price modeling and optimization modules in a business to business market setting wherein price changes are optimized to achieve desired business results.

Claims

1. A method for determining an optimal set of price changes in an integrated price management system, said method comprising:

defining pricing goals and constraints;

defining a selected business segment;

defining a selected product combination; and

generating optimized price changes for said selected product combination and business segment.

2. The method of claim 1, further comprising:

defining an aggregate elasticity range for said selected business segment;

generating a demand model using said aggregate elasticity range.

3. The method of claim 2 further comprising:

selecting an existing customer;

generating said optimized price changes for said selected product combination for said existing customer.

4. The method of claim 3 further wherein said elasticity range is an estimate.

5. The method of claim 4 further comprising:

using said estimated elasticity to optimize price changes;

analyzing the impact of the optimized price changes;

adjusting optimized prices consistent with business goals; and

setting adjusted prices as optimized prices.

6. The method of claim 1, further comprising:

defining a self elasticity for selected products in said selected product combination; and

generating a demand model using said self elasticity.

7. The method of claim 1, further comprising:

determining a set of current prices for said product combination;

defining a single elasticity for each product in said selected product combination, wherein said single elasticity is defined at said current price;

generating a demand model using said single elasticity.

8. A method for determining an optimal set of price changes in an integrated price management system, said method comprising:

defining pricing goals and constraints;

defining selected business segments;

defining selected product combinations;

generating multiple simultaneous segmentation from said selected business segments; and

generating optimized price changes for said selected product combination and multiple simultaneous segmentation.