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

• US 20110178916A1
• Filed: 03/31/2011
• Published: 07/21/2011
• 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 8,086,517 B2
• Time in Patent Office: Days
• US Class Current: 705/37
• 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:

providing to a consumer a price protection contract for the purchase of a commodity, wherein the price protection contract specifies a locale and at least one lock price and quantity such that commodity may be purchased at the lock price at one of a plurality of locations within the locale, wherein providing the price protection contract comprises;

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

creating a virtual reserve of the price protected commodity with the account, wherein the virtual reserve represents the quantity of the commodity available for purchase by the consumer under the price protection contract; and

specifying a time frame for the price protection contract, wherein the time frame comprises a plurality of time segments and 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 during the time segment.