SYSTEM AND METHOD FOR CONSTRAINING DEPLETION AMOUNT IN A DEFINED TIME FRAME

• US 20080306833A1
• Filed: 04/08/2008
• Published: 12/11/2008
• Est. Priority Date: 04/09/2007
• Status: Active Grant

• Current Assignee: Pricelock, Inc.
• Original Assignee: Pricelock, Inc.
• Inventors: Painter, Scott, Fell, Robert M., Bonsignore, Michael R., Magnuson, Gary A., Reed, Brian P.
• Granted Patent: US 7,945,501 B2
• Time in Patent Office: Days
• US Class Current: 705/26
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

Embodiments disclosed herein provide price protection on commodity purchases in which a consumer can select, accept, or otherwise agree to a depletion constraint on the consumption of the commodity thus purchased. Based on the agreed depletion constraint, a provider may adjust terms and/or the price of the price protection. In some embodiments, the depletion constraint can be time-based, quantity-based, value-based, or a combination thereof. In some embodiments, the depletion constraint can be linear. In some embodiments, a consumer may be required to purchase a certain amount of the commodity during a specified time frame. In some embodiments, the provider of the price protection may receive a payment from the consumer when the retail price of the commodity at the time of the purchase is below a specified floor price. In some embodiments, the commodity is motor fuel.

Claims

1. A method for constraining a consumer'"'"'s ability to take delivery of a price protected commodity, comprising:

setting up an account for the consumer at a price protection system accessible by the consumer over a network via one or more computing devices;

associating a virtual reserve of the price protected commodity with the account; and

specifying a time frame during which all or a predetermined portion of the virtual reserve is to be depleted.

2. The method of claim 1, further comprising, prior to setting up the account for the consumer, allowing the consumer to select one or more depletion constraints.

3. The method of claim 2, further comprising determining a price of a retail commodity price protection product based at least in part on the consumer'"'"'s selection of the one or more depletion constraints.

4. The method of claim 2, further comprising associating at least one incentive to the one or more depletion constraints.

5. The method of claim 2, wherein at least one of the one or more depletion constraints affects allocation of risk between a provider of the price protection system and the consumer.

6. The method of claim 1, further comprising dividing the time frame into a plurality of time segments.

7. The method of claim 6, wherein each of the plurality of time segments is associated with a predefined quantity of the virtual reserve of the price protected commodity that is to be depleted correspondingly.

8. The method of claim 6, further comprising charging the consumer at a retail price for any amount depleted over a predefined quantity of the virtual reserve of the price protected commodity during one of the plurality of time segments.

9. The method of claim 1, wherein the predetermined portion is determined based on volume, weight, mass, quantity, amount, time, currency, locale or a combination thereof.

10. The method of claim 1, wherein the price protected commodity is motor fuel.

11. A system for constraining a consumer'"'"'s ability to take delivery of a price protected commodity, comprising:

a processor and a computer memory storing instructions executable by the processor to;

set up an account for the consumer at the system which is accessible by the consumer over a network;

associate a virtual reserve of the price protected commodity with the account; and

specify a time frame during which all or a predetermined portion of the virtual reserve is to be depleted.

12. The system of claim 11, wherein the instructions are further executable by the processor to, prior to setting up the account for the consumer, present a plurality of depletion constraints to the consumer and allow the consumer to select one or more depletion constraints from the plurality of depletion constraints.

13. The system of claim 12, wherein the instructions are further executable by the processor to determine a price of a retail commodity price protection product based at least in part on the consumer'"'"'s selection of the one or more depletion constraints.

14. The system of claim 12, wherein the instructions are further executable by the processor to associate at least one incentive with the one or more depletion constraints.

15. The system of claim 11, wherein the instructions are further executable by the processor to divide the time frame into a plurality of time segments.

16. The system of claim 15, wherein each of the plurality of time segments is associated with a predefined quantity of the virtual reserve of the price protected commodity that is to be depleted correspondingly.

17. The system of claim 11, wherein the predetermined portion is determined based on volume, weight, mass, quantity, amount, time, currency, locale or a combination thereof.

18. The system of claim 11, wherein the price protected commodity is motor fuel.

19. A method for constraining a consumer'"'"'s ability to take delivery of a price protected commodity, comprising:

determining a plurality of depletion constraints based on volume, weight, mass, quantity, amount, time, currency, locale or a combination thereof;

presenting a plurality of retail commodity price protection products to the consumer, wherein each of the plurality of retail commodity price protection products is associated with at least one of the plurality of depletion constraints;

specifying a time frame during which a predefined portion of a virtual reserve of the price protected commodity is to be depleted in accordance with the at least one of the plurality of depletion constraints; and

charging the consumer at a retail price for any amount depleted during the time frame over the predefined portion of the virtual reserve of the price protected commodity.

20. The method of claim 19, wherein the price protected commodity is motor fuel.