Price planning system and method including automated price adjustment, manual price adjustment, and promotion management

• US 7,805,383 B2
• Filed: 07/28/2004
• Issued: 09/28/2010
• Est. Priority Date: 03/08/2004
• Status: Active Grant

• Current Assignee: SAP SE
• Original Assignee: SAP AG (SAP SE)
• Inventors: Roth, Thomas, Wannemacher, Ines, Ziehl, Susanne, Veit, Thomas
• Primary Examiner(s): Hayes; John W
• Assistant Examiner(s): Nelson; Freda Ann
• Application Number:
  US10/900,970
• Publication Number:
  US 20050197896A1
• Time in Patent Office: 2,253 Days
• Field of Search: 705/400, 705/1, 705/10, 705/28, 705/1.1, 705/40, 705/50, 706/12, 706/14
• US Class Current: 705/400
• CPC Class Codes: G06Q 10/087 Inventory or stock management, e.g. order filling, procurement or balancing against orders
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/201 Price look-up processing, e.g. updating
• CPC Class Codes: G06Q 30/0202 Market predictions or forecasting for commercial activities
• CPC Class Codes: G06Q 30/0251 Targeted advertisements
• CPC Class Codes: G06Q 30/0264 based upon schedule
• CPC Class Codes: G06Q 30/0273 Determination of fees for advertising
• CPC Class Codes: G06Q 30/0283 Price estimation or determination

Abstract

The present invention discloses a method, program, product and system for managing the sale of a product. The system can determine if the product is a slow seller, determining a markdown to be applied to a price of the product, reconciling a markdown budget with the determined markdown to be applied to the price to determine whether the markdown will be applied, and adjusting the price of the product by the markdown. The system can also apply manual pricing data and promotion pricing data. The system integrates several tasks required for selling articles and services.

Claims

1. A price planning system comprising:

a processor;

a storage device comprising one or more non-transitory computer-readable media, the non-transitory computer-readable media comprising program code stored therein executable by the processor to implement;

a price planning engine configured to receive a price planning input data, to receive a budget data, to generate a price planning schedule, and to implement the price planning schedule, the price planning schedule configured to include at least one price change and the price change includes at least one of a price change timing data, a quantity limiting data, an automatic implementation data, a manual implementation data, a product data, and a service data, the price planning schedule further configured to include a markdown budget, wherein the markdown budget represents a budgeted difference between a gross margin associated with an initial retail price and an actual margin associated with a final price after markdowns;

a slow seller management system including a product hierarchy module, the slow seller management system is configured to determine a slow seller based on actual sales, a target quota, and at least one of a past sales data, an inventory data, and an accrued cost of inventory data, the slow seller is a product selling at a slower rate than targeted quotas, the slow seller management system is further configured to generate a slow seller price modification and an implementation time data related to the slow seller price modification, wherein the slow seller price modification is a reduction in a price of the slow seller responsive to the slow seller selling the slower rate than targeted quotas, the slow seller management system is configured to reconcile the markdown budget with the slow seller price modification to obtain either a first determination that the slow seller price modification may be implemented without exceeding the markdown budget or a second determination that the slow seller price modification may not be implemented without exceeding the markdown budget;

an automated pricing engine is configured to implement the slow seller price modification based on the first determination;

a manual pricing engine is-configured to implement the slow seller price modification based on a slow seller price modification cost exceeding the markdown budget and an approval signal from a user; and

a price implementation engine is-configured to implement a markdown budget update module and an inventory tracking module based on the slow seller price modification;

wherein the price planning engine is configured to utilize the slow seller price modification to determine a subsequent season plan, wherein the subsequent season plan includes a plan to order a smaller quantity of the slow seller for a subsequent season based on the slow seller price modification.

2. The system of claim 1, wherein the pricing implementation engine is configured to transmit the price planning schedule to one or more cash register systems to implement one or more slow seller price modifications in the price planning schedule.

3. The system of claim 2, wherein the pricing implementation engine is configured to transmit the price planning schedule based on the satisfaction of one or more conditions.

4. The system of claim 2, wherein the price planning schedule includes one or more slow seller price modifications for one or more products or services for sale at a retail location.

5. The system of claim 4, wherein the price planning schedule further includes a time period associated with the one or more slow seller price modifications.

6. The system of claim 5, wherein the slow seller management engine is configured to generate and modify a markdown profile related to one or more products or services.

7. The system of claim 6, wherein the price planning schedule is further based on the markdown profile.

8. The system of claim 1, wherein the manual pricing engine allows manual price changes to be entered for one or more products or services.

9. The system of claim 8, wherein the price planning schedule is further based on the manual price changes.

10. The system of claim 8, wherein the program code is further executable by one or more processors to implement a conversion engine for converting the manual price changes into a promotion.

11. A program product comprising non-transitory computer-readable media, the non-transitory computer-readable media comprising program code stored therein executable by one or more processors to implement:

a price planning module configured to receive a price planning input data, to receive a budget data, to generate a price planning schedule, and to implement the price planning schedule, the price planning schedule configured to include at least one price change and the price change includes at least one of a price change timing data, a quantity limiting data, an automatic implementation data, a manual implementation data, a product data, and a service data, the price planning schedule further configured to include a markdown budget, wherein the markdown budget represents a budgeted difference between a gross margin associated with an initial retail price and an actual margin associated with a final price after markdowns;

an automated pricing module configured to generate execute the program code for generating markdown data;

a manual pricing module configured to generate execute the program code for generating manual pricing data;

a conversion module configured to convert execute the program code for converting the manual price changes into a promotion;

a pricing implementation module; and

a slow seller management system including a product hierarchy module, the slow seller management system is configured to determine a slow seller based on actual sales, a target quota, and at least one of a past sales data, an inventory data, and an accrued cost of inventory data, the slow seller is a product selling at a slower rate than targeted quotas, the slow seller management system is further configured to generate a slow seller price modification and an implementation time data related to the slow seller price modification, wherein the slow seller price modification is a reduction in a price of the slow seller responsive to the slow seller selling the slower rate than targeted quotas, the slow seller management system is configured to obtain either a first determination that the slow seller price modification may be implemented without exceeding the markdown budget or a second determination that the slow seller price modification may not be implemented without exceeding the markdown budget;

wherein the automated pricing module is configured to implement the slow seller price modification based on the first result;

wherein the manual pricing module is configured to implement the slow seller price modification based on a slow seller price modification cost exceeding the markdown budget and an approval signal from a user;

wherein the price implementation module is configured to implement a markdown budget update module and an inventory tracking module based on the slow seller price modification;

wherein the slow seller management system is configured to generate and modify a markdown profile related to one or more products or services;

wherein the price planning module is configured to utilize the slow seller price modification to determine a subsequent season plan, wherein the subsequent season plan includes a plan to order a smaller quantity of the slow seller for a subsequent season based on the slow seller price modification.

12. The system of claim 11, wherein the pricing implementation means is configured to transmit the price planning schedule to one or more cash register systems to implement one or more slow seller price modifications in the price planning schedule.

13. The system of claim 12, wherein the pricing implementation means is configured to transmit the price planning schedule based on the satisfaction of one or more conditions.

14. The system of claim 11, wherein the program code is further executable to implement a user interface module and wherein the user interface module generates the price planning schedule including one or more slow seller price modifications for one or more products or services for sale at a retail location.

15. The system of claim 14, wherein the price planning schedule further includes a time period associated with the one or more slow seller price modifications.

16. The system of claim 11, wherein the price planning schedule is further based on the markdown profile.

17. The system of claim 11, wherein the manual pricing module allows manual price changes to be entered for one or more products or services.

18. The system of claim 17, wherein the price planning schedule is further based on the manual price changes.

19. A program product recorded on a physical medium readable by a computer for generating a price planning schedule, the program product comprising machine-readable program code for causing, when executed, one or more machines to implement:

a price planning engine configured to receive a price planning input data, to receive a budget data, to generate the price planning schedule, and to implement the price planning schedule, the price planning schedule configured to include at least one price change and the price change includes at least one of a price change timing data, a quantity limiting data, an automatic implementation data, a manual implementation data, a product data, and a service data, the price planning schedule further configured to include a markdown budget, wherein the markdown budget represents a budgeted difference between a gross margin associated with an initial retail price and an actual margin associated with a final price after markdowns;

a slow seller management system including a product hierarchy module, the slow seller management system is configured to determine a slow seller based on actual sales, a target quota, and at least one of a past sales data, an inventory data, and an accrued cost of inventory data, the slow seller is a product selling at a slower rate than targeted quotas, the slow seller management system is further configured to generate a slow seller price modification and an implementation time data related to the slow seller price modification, wherein the slow seller rice modification is a reduction in a price of the slow seller responsive to the slow seller selling the slower rate than targeted quotas, the slow seller management system is configured to reconcile the markdown budget with the slow seller price modification to obtain either a first determination that the slow seller price modification may be implemented without exceeding the markdown budget or a second determination that the slow seller price modification may not be implemented without exceeding the markdown budget;

an automated pricing engine is configured to implement the slow seller price modification based on the first determination;

a manual pricing engine is configured to implement the slow seller price modification based on a slow seller price modification cost exceeding the markdown budget and an approval signal from a user; and

a price implementation engine is configured to implement a markdown budget update module and an inventory tracking module based on the slow seller price modification;

wherein the price planning engine is configured to utilize the slow seller price modification to determine a subsequent season plan, wherein the subsequent season plan includes a plan to order a smaller quantity of the slow seller for a subsequent season based on the slow seller price modification.