PRICING SYSTEM FOR IDENTIFYING PRICES FOR VEHICLES OFFERED BY VEHICLE DEALERSHIPS AND OTHER ENTITIES

• US 20140278805A1
• Filed: 03/13/2014
• Published: 09/18/2014
• Est. Priority Date: 03/15/2013
• Status: Active Grant

• Current Assignee: CDK Global Incorporated
• Original Assignee: RedBumper, LLC (CDK Global Incorporated)
• Inventors: Thompson, Bruce T.
• Granted Patent: US 11,080,734 B2
• Time in Patent Office: Days
• US Class Current: 705/7.35
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0206 Price or cost determination based on market factors
• CPC Class Codes: G06Q 30/0278 Product appraisal
• CPC Class Codes: G06Q 30/0283 Price estimation or determination
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 30/0629 for generating comparisons

Abstract

A method includes identifying, for a specified vehicle, a competitive set of other vehicles based on input from a user. The method also includes receiving from the user one or more parameters to be used in pricing the specified vehicle. The method further includes identifying a recommended price for the specified vehicle using the competitive set and the one or more parameters. The one or more parameters could include a selection or definition of multiple pricing formulas to be used to identify the recommended price. Different pricing formulas can be associated with different lengths of time that the specified vehicle is available. A first of the pricing formulas can be used to identify a first recommended price for the specified vehicle and, after a specified amount of time has elapsed, a second of the pricing formulas can be used to identify a lower second recommended price for the specified vehicle.

Claims

1. A method comprising:

identifying, for a specified vehicle, a competitive set of other vehicles based on input from a user;

receiving from the user one or more parameters to be used in pricing the specified vehicle; and

identifying a recommended price for the specified vehicle using the competitive set and the one or more parameters.

2. The method of claim 1, wherein:

the one or more parameters comprise a selection or definition of multiple pricing formulas to be used to identify the recommended price; and

different pricing formulas are associated with different lengths of time that the specified vehicle is available.

3. The method of claim 2, wherein identifying the recommended price comprises:

using a first of the pricing formulas to identify a first recommended price for the specified vehicle; and

after a specified amount of time has elapsed, using a second of the pricing formulas to identify a lower second recommended price for the specified vehicle.

4. The method of claim 3, wherein the pricing formulas define a continuous pricing strategy that accounts for constant vehicle aging.

5. The method of claim 1, wherein identifying the competitive set of other vehicles comprises:

receiving from the user one or more filtering criteria; and

identifying other vehicles that satisfy the one or more filtering criteria for inclusion in the competitive set.

6. The method of claim 1, further comprising:

creating a modified competitive set by at least one of;

adding one or more additional vehicles to the competitive set as the one or more additional vehicles enter at least one marketplace; and

removing one or more expired vehicles from the competitive set as the one or more expired vehicles leave the at least one marketplace; and

updating the recommended price for the specified vehicle using the modified competitive set.

7. The method of claim 1, wherein:

receiving the one or more parameters comprises receiving a selection or definition of at least one pricing formula to be used to identify the recommended price; and

each pricing formula comprises;

a time/age parameter that defines a period of time for which the formula is to be used to identify the recommended price;

a pricing guide parameter that indicates which prices of the other vehicles in the competitive set are to be used to identify the recommended price;

a modifier parameter that indicates how the prices of the other vehicles in the competitive set are to be modified to identify the recommended price; and

a profit protection parameter that identifies a price floor or minimum profit to be used to identify the recommended price.

8. The method of claim 7, wherein:

the pricing guide parameter comprises one of;

a median price of the other vehicles in the competitive set and an initial listing price of the other vehicles in the competitive set; and

the modifier parameter comprises one of;

a specified amount and a specified percentage.

9. A system comprising:

at least one memory configured to store information identifying, for a specified vehicle, a competitive set of other vehicles; and

at least one processing device configured to;

receive from a user one or more parameters to be used in pricing the specified vehicle; and

identify a recommended price for the specified vehicle using the competitive set and the one or more parameters.

10. The system of claim 9, wherein:

the one or more parameters comprise a selection or definition of multiple pricing formulas to be used to identify the recommended price; and

different pricing formulas are associated with different lengths of time that the specified vehicle is available.

11. The system of claim 10, wherein the at least one processing device is configured to:

use a first of the pricing formulas to identify a first recommended price for the specified vehicle; and

after a specified amount of time has elapsed, use a second of the pricing formulas to identify a lower second recommended price for the specified vehicle.

12. The system of claim 11, wherein the pricing formulas define a continuous pricing strategy that accounts for constant vehicle aging.

13. The system of claim 9, wherein the at least one processing device is configured to:

receive from the user one or more filtering criteria; and

identify other vehicles that satisfy the one or more filtering criteria for inclusion in the competitive set.

14. The system of claim 9, wherein the at least one processing device is further configured to:

create a modified competitive set by at least one of;

adding one or more additional vehicles to the competitive set as the one or more additional vehicles enter at least one marketplace; and

removing one or more expired vehicles from the competitive set as the one or more expired vehicles leave the at least one marketplace; and

update the recommended price for the specified vehicle using the modified competitive set.

15. The system of claim 9, wherein:

the at least one processing device is further configured to receive a selection or definition of at least one pricing formula to be used to identify the recommended price; and

each pricing formula comprises;

a time/age parameter that defines a period of time for which the formula is to be used to identify the recommended price;

a pricing guide parameter that indicates which prices of the other vehicles in the competitive set are to be used to identify the recommended price;

a modifier parameter that indicates how the prices of the other vehicles in the competitive set are to be modified to identify the recommended price; and

a profit protection parameter that identifies a price floor or minimum profit to be used to identify the recommended price.

16. A non-transitory computer readable medium embodying a computer program, the computer program comprising computer readable program code for:

identifying, for a specified vehicle, a competitive set of other vehicles based on input from a user;

receiving from the user one or more parameters to be used in pricing the specified vehicle; and

identifying a recommended price for the specified vehicle using the competitive set and the one or more parameters.

17. The computer readable medium of claim 16, wherein:

the one or more parameters comprise a selection or definition of multiple pricing formulas to be used to identify the recommended price;

different pricing formulas are associated with different lengths of time that the specified vehicle is available; and

the pricing formulas define a continuous pricing strategy that accounts for constant vehicle aging.

18. The computer readable medium of claim 17, wherein the computer readable program code for identifying the recommended price comprises computer readable program code for:

using a first of the pricing formulas to identify a first recommended price for the specified vehicle; and

after a specified amount of time has elapsed, using a second of the pricing formulas to identify a lower second recommended price for the specified vehicle.

19. The computer readable medium of claim 16, further comprising computer readable program code for:

creating a modified competitive set by at least one of;

adding one or more additional vehicles to the competitive set as the one or more additional vehicles enter at least one marketplace; and

removing one or more expired vehicles from the competitive set as the one or more expired vehicles leave the at least one marketplace; and

updating the recommended price for the specified vehicle using the modified competitive set.

20. The computer readable medium of claim 16, wherein:

the computer readable program code for receiving the one or more parameters comprises computer readable program code for receiving a selection or definition of at least one pricing formula to be used to identify the recommended price; and

each pricing formula comprises;

a time/age parameter that defines a period of time for which the formula is to be used to identify the recommended price;

a pricing guide parameter that indicates which prices of the other vehicles in the competitive set are to be used to identify the recommended price;

a modifier parameter that indicates how the prices of the other vehicles in the competitive set are to be modified to identify the recommended price; and

a profit protection parameter that identifies a price floor or minimum profit to be used to identify the recommended price.