Vending machine system and method for encouraging the purchase of profitable items

• US 7,249,050 B1
• Filed: 06/30/1999
• Issued: 07/24/2007
• Est. Priority Date: 03/21/1997
• Status: Expired due to Fees

• Current Assignee: PayPal, Inc. (PayPal Holdings, Inc.)
• Original Assignee: Walker Digital LLC (Walker Innovation Inc. (f/k/a Patent Properties, Inc.))
• Inventors: Walker, Jay S., Tedesco, Daniel E., Van Luchene, Andrew S., Bemer, Keith
• Primary Examiner(s): Stamber, Eric W.
• Assistant Examiner(s): NGUYEN, TRI V
• Application Number:
  US09/345,092
• Time in Patent Office: 2,946 Days
• Field of Search: 705/14, 705/26, 705/10, 705/16, 705/22, 700/231, 700/232, 700/238
• US Class Current: 705/14.13
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/203 Inventory monitoring
• CPC Class Codes: G06Q 30/0211 Determining the effectiveness of discounts or incentives
• CPC Class Codes: G06Q 30/0238 at point-of-sale [POS]
• CPC Class Codes: G07F 9/02 Devices for alarm or indication, e.g. when empty; Advertising arrangements in coin-freed apparatus alarms or warning devices indicating the interruption of flow to be metered G07F15/10

Abstract

This invention relates generally to systems and methods for delivering products-on-demand to individuals and, more particularly, to delivery via vending machines. In accordance with a preferred embodiment, the method of the instant invention is initiated when a customer makes an initial product selection. Based the customer'"'"'s product choice, a determination is made as to whether or not that product qualifies for an alternate product offer. If it does not so qualify, the customer'"'"'s original selection will be dispensed and the transaction ends. On the other hand, if the product does so qualify, the customer will be presented with an offer message that suggests that he or she should try an alternative product. Typically, the product that is offered as an alternative will be the one whose sale is most beneficial to the vending machine operator, e.g., the one yielding the greatest profit. If the customer accepts the alternate offer, the alternate product will be dispensed. However, if the customer declines the alternate product offer, the originally requested item will be vended. The particular circumstances under which an alternate product offer is presented to the customer are quantified by representing them as a collection of rules, the evaluation of which depends preferably on previously collected sales data.

Claims

1. A method of automatically dispensing a product to a customer, comprising the steps of:

(a) receiving a product selection from the customer;

(b) determining whether said product selection qualifies for an alternate product offer by;

(b1) choosing an alternate product,

(b2) determining an acceptance rate of said chosen alternate product in relation to said product selection, and,

(b3) determining whether said product selection qualifies for an alternate product offer based on said acceptance rate;

(c) presenting an alternate product offer message if said product selection so qualifies;

(d) determining if the customer has accepted said alternate product offer; and

,

(e) dispensing a first product that corresponds to said alternate product offer if the customer has so accepted, or,

(f) dispensing a second product that corresponds to said product selection if the customer has not so accepted.

2. A method according to claim 1, wherein step (b3) includes the step of:

(i) determining that said product selection qualifies for an alternate product offer if said acceptance rate is greater than a predetermined value.

3. A method of automatically dispensing a product to a customer, comprising the steps of:

(a) receiving a product selection from the customer wherein there is a profit margin associated with said product selection;

(b) determining whether said product selection qualifies for an alternate product offer by;

(b1) choosing an alternate product,

(b2) obtaining a profit margin associated with said alternate product, and,

(b3) determining that said product selection qualifies for an alternate product offer if said alternate product profit margin is greater than said profit margin associated with said product selection;

(c) presenting an alternate product offer message if said product selection so qualifies;

(d) determining if the customer has accepted said alternate product offer; and

,

(e) dispensing a first product that corresponds to said alternate product offer if the customer has so accepted, or,

(f) dispensing a second product that corresponds to said product selection if the customer has not so accepted.

4. A method according to claim 3, wherein there is at least one product item associated with said chosen alternate product, wherein each of said at least one product item associated with said chosen alternate product has an expiration date, and, wherein said profit margin associated with said alternate product is chosen to be a function of said expiration date.

5. A method of automatically dispensing a product to a customer, comprising the steps of:

(a) receiving a product selection from the customer;

(b) determining whether said product selection qualifies for an alternate product offer by;

(b1) determining a demand rate for said product selection,

(b2) choosing an alternate product,

(b3) determining a demand rate for said alternate product,

(b4) comparing said demand rate for said product selection and said demand rate for said alternate product, and,

(b5) determining based on said step of comparing whether said product selection qualifies for an alternate product offer;

(c) presenting an alternate product offer message if said product selection so qualifies;

(d) determining if the customer has accepted said alternate product offer; and

,

(e) dispensing a first product that corresponds to said alternate product offer if the customer has so accepted, or,

(f) dispensing a second product that corresponds to said product selection if the customer has not so accepted.

6. A method of automatically dispensing a product to a customer, comprising the steps of:

(a) receiving a product selection from the customer;

(b) determining whether said product selection qualifies for an alternate product offer by;

(b1) selecting an alternate product,

(b2) determining a demand rate for said product selection,

(b3) comparing said demand rate with a predetermined rate, and,

(b4) determining based on said step of comparing whether said product selection qualifies for an alternate product offer;

(c) presenting an alternate product offer message if said product selection so qualifies;

(d) determining if the customer has accepted said alternate product offer; and

,

(e) dispensing a first product that corresponds to said alternate product offer if the customer has so accepted, or,

(f) dispensing a second product that corresponds to said product selection if the customer has not so accepted.

7. A method of automatically dispensing a product to a customer, comprising the steps of:

(a) receiving a product selection from the customer;

(b) determining whether said product selection qualifies for an alternate product offer;

(c) presenting an alternate product offer message if said product selection so qualifies, by;

(c1) selecting a plurality of products, each of said plurality of products having a profit margin associated therewith,

(c2) determining which of said associated profit margins is a largest profit margin,

(c3) identifying which of said plurality of products is associated with said largest profit margin,

(c4) selecting for presentation in an alternate product offer message any product so identified, and,

(c5) presenting said alternate product offer message if said product selection so qualifies;

(d) determining if the customer has accepted said alternate product offer; and

,

(e) dispensing a first product that corresponds to said alternate product offer if the customer has so accepted, or,

(f) dispensing a second product that corresponds to said product selection if the customer has not so accepted.

8. A method comprising:

receiving a selection of a first product from a vending machine;

presenting an offer for a second product in lieu of the first product, in which the second product is more profitable than the first product;

determining if the customer has accepted the offer; and

dispensing the second product if the customer has accepted the offer.

9. A method comprising:

receiving a selection of a first product from a vending machine;

determining a profit margin of the first product;

determining a second product that has a profit margin greater than the profit margin of the first product;

displaying an offer to for the second product instead of the first product;

receiving an acceptance of the offer; and

dispensing the second product.

10. A method, comprising:

receiving, by a vending machine, an indication of a customer selection of a product offered for sale by the vending machine;

receiving, by the vending machine, an indication of an amount of funds provided by the customer;

determining, after the receiving of the indication of the customer selection of the product, and by a processor of the vending machine, an alternate product offer rule associated with the selected product, wherein the alternate product offer rule comprises a rule that the selected product be associated with a demand that is greater than a pre-defined threshold for demand;

determining, by the processing device of the vending machine, that the alternate product offer rule is satisfied;

providing, to the customer and by the vending machine, an offer for an alternate product associated with the alternate product offer rule, instead of the selected product in exchange for the funds provided by the customer;

determining, by the processing device of the vending machine, an acceptance, by the customer, of the offer for the alternate product; and

dispensing, by the vending machine, and after the determination of the acceptance of the alternate product offer by the customer, the alternate product to the customer.

11. A method, comprising:

receiving, by a vending machine, an indication of a customer selection of a product offered for sale by the vending machine;

receiving, by the vending machine, an indication of an amount of funds provided by the customer;

determining, after the receiving of the indication of the customer selection of the product, and by a processor of the vending machine, an alternate product that is associated with the lowest demand of all products offered for sale by the vending machine;

providing, to the customer and by the vending machine, an offer for the alternate product;

determining, by the processing device of the vending machine, an acceptance, by the customer, of the offer for the alternate product; and

dispensing, by the vending machine, and after the determination of the acceptance of the alternate product offer by the customer, the alternate product to the customer.