Virtual client discount pricing

• US 6,928,416 B1
• Filed: 07/07/1999
• Issued: 08/09/2005
• Est. Priority Date: 07/07/1999
• Status: Expired due to Fees

• Current Assignee: Michael L. Bertash
• Original Assignee: Michael L. Bertash
• Inventors: Bertash, Michael L.
• Primary Examiner(s): Smith, Jeffrey A.
• Assistant Examiner(s): Thompson, Jr., Forest
• Application Number:
  US09/346,787
• Time in Patent Office: 2,225 Days
• Field of Search: 705/26, 705/27, 705/35
• US Class Current: 705/35
• 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

Abstract

A Virtual Client Discount Pricing system and method that allows a number of individuals or entities, referred to as participants, to create a virtual client for the purpose of purchasing, leasing or renting of products and services, especially investment management services. The plurality of individuals or entities, referred to as participants, gather together to form the virtual client. In general, the virtual client is created to enable the participants to access goods or services from a provider, or numerous providers, using a discounted rate. In this manner, when the participants of the virtual client access goods or services from the provider, each of the participants receives a discounted rate from the provider using the virtual client, as compared to each of the participants individually accessing goods or services from the provider.

Claims

1. A method for assessing investment management fees to accounts, wherein the accounts are maintained in an investment management system, wherein the accounts are held by a plurality of participants in a virtual client, wherein each of the participants has at least one account, wherein each account is assigned to a respective one of a plurality of product categories, wherein said assessing fees comprises:

for each of the plurality of product categories, calculating a product volume fee for each account using a computer system;

determining a group discount for the virtual client, wherein the group discount is based on market value in all accounts for the plurality of product categories in the virtual client, wherein the group discount is based on a single group discount rate, and wherein the group discount rate is applied to each of the respective accounts in the virtual client;

determining an adjuster for each account in the virtual client, wherein, for each respective account, the adjuster is based on market value of the respective account in the virtual client, wherein each of the adjusters is based on a respective adjuster discount rate, and wherein the adjuster discount rates vary with the market value of the respective accounts in the virtual client;

calculating a fee for each respective account based on the product volume fee for the respective account, the group discount, and the adjuster for the respective account; and

billing the participants for the calculated fees on a periodic basis using the computer system.

2. The method of claim 1, wherein, for each respective product category, said calculating a product volume fee comprises:

aggregating market value of all accounts for the respective product category to produce a total product market value;

calculating a product volume rate based on the total product market value and a discount schedule; and

calculating a product volume fee for each account for the respective product category based on the product volume rate and the market value of each account.

3. The method of claim 2, wherein the product volume fee for each account for the respective product category is calculated as the product volume rate multiplied by the market value of each account.

4. The method of claim 1, wherein said determining the group discount comprises:

aggregating market value of all accounts for all product categories to produce a total market value;

calculating the group discount rate based on the total market value and a discount schedule; and

calculating the group discount for each account, wherein, for each respective account, the group discount is calculated based on the group discount rate and the market value for the respective account.

5. The method of claim 4, wherein the group discount for each account is calculated as the group discount rate multiplied by the market value for the respective account.

6. The method of claim 1, wherein the adjuster is based on market value of the respective account in the virtual client and a discount schedule.

7. The method of claim 6, wherein the discount schedule is applied on a per account basis.

8. The method of claim 6, wherein the discount schedule is applied on a per participant basis.

9. The method of claim 6, wherein, for a respective participant, said determining the adjuster comprises:

aggregating market value of all accounts for a respective participant to produce a participant market value;

apply the participant market value to the discount schedule to produce an adjuster rate; and

calculating the adjuster for each respective account of the respective participant based on the adjuster rate and the market value of the respective account.

10. The method of claim 1, wherein the adjuster is an account adjuster calculated independently for each account basis based on market value in an account of the respective participant in the virtual client.

11. The method of claim 1, wherein the adjuster is an adjuster that is based on market value in all accounts of the respective participant in the virtual client.

12. The method of claim 1, wherein the adjuster is calculated on a per-account basis based on market value in an account of the respective participant in the virtual client.

13. The method of claim 1, wherein, for a respective account, the fee is calculated as the sum of the product volume fee for the respective account, the group discount, and the adjuster for the respective account.

14. The method of claim 1, wherein at least a subset of the participants receives a discounted rate from the provider using the virtual client as compared to each of the participants individually accessing goods or services from the provider.

15. The method of claim 1, wherein all of the participants receive a discounted rate from the provider using the virtual client as compared to each of the participants individually accessing goods or services from the provider.

16. The method of claim 1, wherein the method operates to assess investment management fees to each of the participants.

17. The method of claim 1, wherein the method operates to assess investment management fees to each of the accounts.

18. The method of claim 1, further comprising:

generating invoices to each of the participants based on the calculated fee.

19. The method of claim 1, wherein calculating the fee for each respective account further comprises calculating the fee to ensure a minimum profit level per participant.

20. The method of claim 1, wherein calculating the fee for each respective account further comprises calculating the fee to ensure a minimum profit level per product category.

21. The method of claim 1, wherein calculating the fee for each respective account further comprises calculating the fee to ensure a minimum profit level per virtual client.

22. The method of claim 1, wherein the product volume fee for at least one account includes no discount.

23. The method of claim 1, wherein the group discount is zero.

24. A computer-implemented method for assessing investment management fees to accounts, wherein the accounts are maintained in an investment management system, wherein the accounts are held by a plurality of participants in a virtual client, wherein the virtual client persists beyond a purchase at a single point in time, wherein each of the participants has at least one account, wherein said assessing fees comprises:

calculating a product volume fee for each account using a computer system;

determining a group discount for the virtual client, wherein the group discount is based on market value in all accounts in the virtual client, wherein the group discount is based on a single group discount rate, and wherein the group discount rate is applied to each of the respective accounts in the virtual client;

determining an adjuster for each account in the virtual client, wherein, for each respective account, the adjuster is based on market value of the respective account in the virtual client, wherein each of the adjusters is based on a respective adjuster discount rate, and wherein the adjuster discount rates vary with the market value of the respective accounts in the virtual client;

programmatically calculating a fee for each respective account based on the product volume fee for the respective account, the group discount, and the adjuster for the respective account; and

storing the calculated fees in a memory of the computer system.

25. The method of claim 24, wherein said determining the group discount comprises:

aggregating market value of all accounts to produce a total market value;

calculating the group discount rate based on the total market value and a discount schedule; and

calculating the group discount for each account, wherein, for each respective account, the group discount is calculated based on the group discount rate and the market value for the respective account.

26. A method for assessing investment management fees to participants, comprising:

determining fees for each account in a virtual client, wherein the virtual client comprises a plurality of participants, wherein each of the participants has at least one account, wherein each account is assigned to a respective one of a plurality of product categories;

wherein said determining fees comprises;

for each of the plurality of product categories, calculating a product volume fee for each account using a computer system;

determining a group discount for the virtual client, wherein the group discount is based on assets in all accounts for the plurality of product categories in the virtual client, wherein the group discount is based on a single group discount rate, and wherein the group discount rate is applied to each of the respective accounts in the virtual client;

determining an adjuster for each account in the virtual client, wherein, for each respective account, the adjuster is based on assets of the respective account in the virtual client, wherein each of the adjusters is based on a respective adjuster discount rate, and wherein the adjuster discount rates vary with the market value of the respective accounts in the virtual client; and

calculating a fee for each respective account based on the product volume fee for the respective account, the group discount, and the adjuster for the respective account; and

billing each of the participants in the virtual client for the respective determined fees on a periodic basis using the computer system.

27. A method for managing investment accounts, comprising:

providing investment management services to a virtual client, wherein the virtual client comprises a plurality of participants, wherein each of the participants has at least one account, wherein each account is assigned to a respective one of a plurality of product categories; and

determining fees for each of the accounts in the virtual client, comprising;

for each of the plurality of product categories, calculating a product volume fee for each account using a computer system;

determining a group discount for the virtual client, wherein the group discount is based on assets in all accounts for the plurality of product categories in the virtual client, wherein the group discount is based on a single group discount rate, and wherein the group discount rate is applied to each of the respective accounts in the virtual client;

determining an adjuster for each account in the virtual client, wherein, for each respective account, the adjuster is based on assets of the respective account in the virtual client, wherein each of the adjusters is based on a respective adjuster discount rate, and wherein the adjuster discount rates vary with the market value of the respective accounts in the virtual client; and

calculating a fee for each respective account based on the product volume fee for the respective account, the group discount, and the adjuster for the respective account; and

billing each of the participants in the virtual client for the respective determined fees on a periodic basis using the computer system.

28. A computer-implemented method for determining product pricing for accounts in a virtual client, wherein the virtual client comprises a plurality of participants, wherein each of the participants has at least one account, wherein each account is assigned to at least one product category of a plurality of product categories, wherein said determining product pricing comprises:

programmatically calculating a product price for each account;

using a computer system

programmatically determining a group discount for the virtual client, wherein the group discount is based on total volume in all accounts for the plurality of product categories in the virtual client, wherein the group discount is based on a single group discount rate, and wherein the group discount rate is applied to each of the respective accounts in the virtual client;

programmatically determining an adjuster for each account in the virtual client, wherein, for each respective account, the adjuster is based on volume of the respective account in the virtual client, wherein each of the adjusters is based on a respective adjuster discount rate, and wherein the adjuster discount rates vary with the market value of the respective accounts in the virtual client; and

programmatically calculating a fee for each respective account based on the product volume fee for the respective account, the group discount, and the adjuster for the respective account; and

storing the calculated fees in a memory of the computer system.

29. The method of claim 28, wherein, for each respective product category, said calculating a product price comprises:

aggregating volume of all accounts for the respective product category to produce a total product volume;

calculating a product volume rate based on the total product volume and a discount schedule; and

calculating a product volume fee for each account for the respective product category based on the product volume rate and the market value of each account.

30. The method of claim 29, wherein the product volume fee for each account for the respective product category is calculated as the product volume rate multiplied by the volume of each account.

31. The method of claim 28, wherein said determining the group discount comprises:

aggregating volume of all accounts for all product categories to produce a total volume;

calculating the group discount rate based on the total volume and a discount schedule; and

calculating the group discount for each account, wherein, for each respective account, the group discount is calculated based on the group discount rate and the volume for the respective account.

32. The method of claim 31, wherein the group discount for each account is calculated as the group discount rate multiplied by the volume for the respective account.

33. The method of claim 28, wherein the adjuster is based on volume of the respective account in the virtual client and a discount schedule.

34. The method of claim 33, wherein the discount schedule is applied on a per account basis.

35. The method of claim 33, wherein the discount schedule is applied on a per participant basis.

36. The method of claim 33, wherein, for a respective participant, said determining the adjuster comprises:

aggregating volume of all accounts for a respective participant to produce a participant volume;

apply the participant volume to the discount schedule to produce a participant discount rate; and

calculating the adjuster for each respective account of the respective participant based on the participant discount rate and the volume of the respective account.

37. The method of claim 28, wherein the adjuster is an account adjuster calculated independently for each account basis based on volume in an account of the respective participant in the virtual client.

38. The method of claim 28, wherein the adjuster is a participant adjuster that is based on volume in all accounts of the respective participant in the virtual client.

39. The method of claim 28, wherein the adjuster is calculated on a per-account basis based on volume in an account of the respective participant in the virtual client.

40. The method of claim 28, wherein, for a respective account the fee is calculated as the sum of the product volume fee for the respective account, the group discount, and the adjuster for the respective account.

41. The method of claim 28, wherein at least a subset of the participants receives a discounted rate from the provider using the virtual client as compared to each of the participants individually accessing goods or services from the provider.

42. The method of claim 28, wherein all of the participants receive a discounted rate from the provider using the virtual client as compared to each of the participants individually accessing goods or services from the provider.

43. The method of claim 28, wherein method operates to assess investment management fees to each of the participants.

44. The method of claim 28, wherein the volume comprises units.

45. The method of claim 28, wherein the volume comprises market value.

46. The method of claim 28, wherein the volume comprises revenue.

47. The method of claim 28, further comprising:

generating invoices to each of the participants based on the calculated fee.

48. The method of claim 28, wherein calculating the fee for each respective account further comprises calculating the fee to ensure a minimum profit level per participant.

49. The method of claim 28, wherein calculating the fee for each respective account further comprises calculating the fee to ensure a minimum profit level per product category.

50. The method of claim 28, wherein calculating the fee for each respective account further comprises calculating the fee to ensure a minimum profit level per virtual client.

51. The method of claim 28, wherein the product volume fee for at least one account includes no discount.

52. The method of claim 28, wherein the group discount is zero.

53. A memory medium comprising program instructions for assessing investment management fees to accounts, wherein the accounts are maintained in an investment management system, wherein the accounts are held by a plurality of participants in a virtual client, wherein each of the participants has at least one account, wherein each account is assigned to a respective one of a plurality of product categories;

wherein the program instructions are executable by a computer to implement;

for each of the plurality of product categories, calculating a product volume fee for each account using a computer;

determining a group discount for the virtual client, wherein the group discount is based on market value in all accounts for the plurality of product categories in the virtual client, wherein the group discount is based on a single group discount rate, and wherein the group discount rate is applied to each of the respective accounts in the virtual client;

determining an adjuster for each account in the virtual client, wherein, for each respective account, the adjuster is based on market value of the respective account in the virtual client, wherein each of the adjusters is based on a respective adjuster discount rate, and wherein the adjuster discount rates vary with the market value of the respective accounts in the virtual client;

calculating a fee for each respective account based on the product volume fee for the respective account, the group discount, and the adjuster for the respective account; and

storing the fee for each respective account in a memory.

54. A method for assessing discounted investment management fees to a plurality of accounts, wherein the accounts are held by a plurality of participants in a virtual client, wherein each of the participants has at least one account, and wherein the method for assessing discounted investment management fees comprises:

determining a first discount for each account, using a computer wherein each account is assigned to a respective product category of a plurality of product categories, wherein the first discount increases with an increasing market value of all accounts assigned to the respective product category in the virtual client;

determining a second discount for each account, wherein the second discount increases with an increasing market value of all accounts for the plurality of product categories in the virtual client;

determining a third discount for each account, wherein the third discount increases with an increasing market value of the respective account in the virtual client;

determining a total discount for each respective account, wherein the total discount comprises the first discount, the second discount, and the third discount for the respective account;

determining an investment management fee for each respective account by subtracting the total discount for the respective account from a total market value of one or more products purchased in the respective account; and

collecting the investment management fees from the plurality of participants on a periodic basis using the computer system.