MANAGEMENT AND DECISION MAKING TOOL FOR COMMODITY PURCHASES WITH HEDGING SCENARIOS

• US 20080313067A1
• Filed: 02/12/2008
• Published: 12/18/2008
• Est. Priority Date: 02/12/2007
• Status: Abandoned Application

• Current Assignee: Pricelock, Inc.
• Original Assignee: Pricelock, Inc.
• Inventors: Painter, Scott, Fell, Robert M., Bonsignore, Michael R., Magnuson, Gary A., Reed, Brian P.
• Application Number:
  US12/029,961
• Publication Number:
  US 20080313067A1
• Time in Patent Office: Days
• US Class Current: 705/35
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

Methods for managing hedging scenarios associated with a retail commodity. The method includes enabling the creation of a risk profile associated with a user and the commodity. Based on the risk profile, the method includes selecting hedging scenario(s) associated with purchasing a quantity of the commodity. The method also includes determining a user cost associated with purchasing the hedging scenarios using a time-based price of the commodity and outputting the costs. In some embodiments the time-based price is historic. The method can include enabling the user to purchase a hedging scenarios. Some embodiments include accepting a commodity consumption pattern, adjustments to the pattern, what-if cases, costs to the provider of the hedging scenarios. The costs (and savings) to the user can be determined based on the accepted consumption patterns (and adjustments) what-if cases, and provider costs. Systems and programs for managing such hedging scenarios also provided.

Claims

1. A computer-readable storage medium carrying program instructions executable by a processor to:

create a risk profile associated with a customer, a commodity, or a combination thereof;

based on the risk profile, create one or more hedging scenarios associated with a purchase of a quantity of the commodity;

determine a cost associated with each of the one or more hedging scenarios using a time-based price associated with the commodity; and

present the one or more hedging scenarios to the customer, wherein the customer is an individual user or an entity.

2. The computer-readable storage medium of claim 1, wherein the time-based price is a historic time-based price.

3. The computer-readable storage medium of claim 1, wherein the program instructions are further executable by the processor to enable the customer to purchase a price protection product covering at least one of the one or more hedging scenarios.

4. The computer-readable storage medium of claim 1, wherein the program instructions are further executable by the processor to accept a consumption pattern of the commodity associated with the customer and to determine the cost associated with each of the one or more hedging scenarios based on the consumption pattern.

5. The computer-readable storage medium of claim 4, wherein the program instructions are further executable by the processor to accept an adjustment to the consumption pattern.

6. The computer-readable storage medium of claim 1, wherein the program instructions are further executable by the processor to determine a cost associated with purchasing the quantity of the commodity at a retail price.

7. The computer-readable storage medium of claim 1, wherein the program instructions are further executable by the processor to accept a what-if case associated with the commodity and to determine the cost associated with each of the one or more hedging scenarios based on the what-if scenario.

8. The computer-readable storage medium of claim 7, wherein the what-if case pertains to a natural disaster, a war, a political change, a supply disruption, an interest rate change, or a world event.

9. The computer-readable storage medium of claim 1, wherein the program instructions are further executable by the processor to add a non-hedging related cost to the cost associated with each of the one or more hedging scenarios.

10. The computer-readable storage medium of claim 1, wherein the program instructions are further executable by the processor to determine a savings associated with purchasing each of the one or more hedging scenarios and to present the savings to the customer with the one or more hedging scenarios.

11. A method comprising:

creating a risk profile associated with a customer, a commodity, or a combination thereof;

based on the risk profile, creating or selecting one or more hedging scenarios associated with a purchase of a quantity of the commodity;

determining a cost associated with each of the one or more hedging scenarios using a time-based price associated with the commodity; and

presenting the one or more hedging scenarios to the customer via a user interface.

12. The method of claim 11, wherein the time-based price is a historic time-based price.

13. The method of claim 11, further comprising enabling the customer to purchase, through the user interface, a price protection product covering at least one of the one or more hedging scenarios.

14. The method of claim 11, further comprising:

accepting a consumption pattern of the commodity associated with the customer; and

determining the cost associated with each of the one or more hedging scenarios based on the consumption pattern.

15. The method of claim 11, further comprising:

determining a savings associated with purchasing each of the one or more hedging scenarios; and

presenting the savings to the customer with the one or more hedging scenarios.

16. A system comprising:

a processor; and

a computer-readable storage medium accessible by the processor and carrying program instructions executable by the processor to;

create a risk profile associated with a customer, a commodity, or a combination thereof;

based on the risk profile, create one or more hedging scenarios associated with a purchase of a quantity of the commodity;

determine a cost associated with each of the one or more hedging scenarios using a time-based price associated with the commodity; and

present the one or more hedging scenarios to the customer, wherein the customer is an individual user or an entity.

17. The system of claim 16, wherein the time-based price is a historic time-based price.

18. The system of claim 16, wherein the program instructions are further executable by the processor to enable the customer to purchase a price protection product covering at least one of the one or more hedging scenarios.

19. The system of claim 16, wherein the program instructions are further executable by the processor to add a non-hedging related cost to the cost associated with each of the one or more hedging scenarios.

20. The system of claim 16, wherein the program instructions are further executable by the processor to determine a savings associated with purchasing each of the one or more hedging scenarios and to present the savings to the customer with the one or more hedging scenarios.