System and method for financing purchases of consumables, including heating oil or propane

• US 8,825,546 B2
• Filed: 07/27/2012
• Issued: 09/02/2014
• Est. Priority Date: 08/10/2011
• Status: Active Grant

• Current Assignee: Philip J. Baratz
• Original Assignee: Philip J. Baratz
• Inventors: Baratz, Philip J.
• Primary Examiner(s): BAIRD, EDWARD J
• Application Number:
  US13/560,705
• Publication Number:
  US 20130041815A1
• Time in Patent Office: 767 Days
• Field of Search: 705 35- 40
• US Class Current: 705/40
• CPC Class Codes: G06Q 30/04 Billing or invoicing
• CPC Class Codes: G06Q 50/06 Energy or water supply

Abstract

A system operable to monitor the consumption of a commodity at the premises of a consumer may comprise a billing system interfacing with suppliers and retailers of the commodity to facilitate the purchase and distribution of the commodity. The billing system may include a payment structure that can alleviate the burden of consumers having to pay for an entire delivery of the commodity—the consumer is only responsible for paying for the amount actually consumed during a time period at a prevailing price during that time—as well as significantly reduce a retailer'"'"'s working capital required to float the purchase of the commodity before it is paid by its consumers. Such a billing system and payment structure may eliminate or reduce the need for a retailer to borrow against receivables to pay for such purchases.

Claims

1. A system, comprising:

a processing module embodied on a non-transitory computer-readable medium and configured to;

track consumption of a commodity at a physical location of a consumer, wherein the commodity is obtained from a supplier and delivered to the physical location by a retailer; and

a billing system operating on one or more server machines communicatively connected to a retailer back office system over a first network connection and a supplier back office system over a second network connection,

wherein the retailer back office system is owned and operated by the retailer and external to the billing system and the supplier back office system,

wherein the supplier back office system is owned and operated by the supplier and external to the billing system and the retailer back office system, and

wherein the billing system is configured, independently of the retailer back office system and the supplier back office system, to;

determine whether to reimburse or pay the supplier for a total amount of the commodity that the retailer has obtained from the supplier during a first time period pursuant to a first agreement between an operator of the billing system and the supplier;

communicate to the retailer an amount of consumption of the commodity at the physical location of the consumer during a second time period, wherein the retailer bills the consumer for the amount of consumption of the commodity at the physical location of the consumer during the second time period pursuant to a second agreement between the operator of the billing system and the retailer;

determine or obtain a total amount of the commodity that the retailer has delivered to a set of consumers during the first time period; and

bill the retailer for a difference between the total amount of the commodity that the retailer has obtained from the supplier during the first time period and a total amount of the commodity that the retailer has delivered to a set of consumers during the first time period.

2. The system of claim 1, wherein the billing system is further configured to:

generate an invoice to the retailer for an aggregate amount of consumption of the commodity by the set of consumers during a third time period.

3. The system of claim 2, wherein the retailer bills the consumer for the amount of consumption of the commodity per a billing cycle and wherein the invoice from the billing system to the retailer for the aggregate amount of consumption of the commodity by the set of consumers during the third time period specifies a due date on or after the billing cycle for the consumer to pay the retailer is concluded.

4. The system of claim 1, wherein the retailer pays the supplier for the total amount of the commodity at a first price, wherein the supplier invoices the billing system for the total amount of the commodity at a second price, and wherein the billing system reimburses the supplier for the total amount of the commodity based on a difference between the first price and the second price.

5. The system of claim 1, wherein the commodity is heating oil, propane, a lube product, a fuel product, an agricultural product, or a product which trades on a commodity exchange.

6. The system of claim 1, wherein the billing system is further configured to provide the retailer with pricing data, the pricing data comprising one or more price points prevailing during the second time period, wherein the retailer bills the consumer for the amount of consumption of the commodity at a retail price prevailing during the second time period.

7. The system of claim 1, wherein the billing system is further configured to provide the retailer with pricing data, the pricing data comprising a retail price of the commodity on a particular day when the commodity is delivered to the physical location of the consumer, wherein the retailer bills the consumer for the amount of consumption of the commodity at the retail price of the commodity on the particular day.

8. The system of claim 1, further comprising an interface module configured to present a user interface on a device associated with the consumer, the device being communicatively connected to the system over a third network connection.

9. The system of claim 8, wherein the user interface comprises a price option for the consumer to lock into a particular price of the commodity, and wherein the retailer bills the consumer for the amount of consumption of the commodity during the second time period at the particular price of the commodity selected by the consumer via the user interface.

10. The system of claim 1, wherein the retailer back office system is one of a plurality of retailer back office systems communicatively connected to the billing system.

11. A method, comprising:

at a central system operating on one or more server machines communicatively connected to a retailer back office system over a first network connection and a supplier back office system over a second network connection, wherein the central system is independent of the retailer back office system and the supplier back office system;

the central system tracking consumption of a commodity at a physical location of a consumer, wherein the commodity is obtained from a supplier and delivered to the physical location by a retailer, wherein the retailer back office system is owned and operated by the retailer and external to the central system and the supplier back office system, and wherein the supplier back office system is owned and operated by the supplier and external to the central system and the retailer back office system;

the central system determining whether to reimburse or pay the supplier for a total amount of the commodity that the retailer has obtained from the supplier during a first time period pursuant to a first agreement between an operator of the central system and the supplier;

the central system communicating to the retailer an amount of consumption of the commodity at the physical location of the consumer during a second time period, wherein the retailer bills the consumer for the amount of consumption of the commodity at the physical location of the consumer during the second time period pursuant to a second agreement between the operator of the central system and the retailer;

the central system determining or obtaining a total amount of the commodity that the retailer has delivered to a set of consumers during the first time period; and

the central system billing the retailer for a difference between the total amount of the commodity that the retailer has obtained from the supplier during the first time period and a total amount of the commodity that the retailer has delivered to a set of consumers during the first time period.

12. The method of claim 11, further comprising:

the central system generating an invoice to the retailer for an aggregate amount of consumption of the commodity by the set of consumers during a third time period.

13. The method of claim 12, wherein the retailer bills the consumer for the amount of consumption of the commodity per a billing cycle and wherein the invoice from the central system to the retailer for the aggregate amount of consumption of the commodity by the set of consumers during the third time period specifies a due date on or after the billing cycle for the consumer to pay the retailer is concluded.

14. The method of claim 11, wherein the retailer pays the supplier for the total amount of the commodity at a first price, wherein the supplier invoices the central system for the total amount of the commodity at a second price, and wherein the central system reimburses the supplier for the total amount of the commodity based on a difference between the first price and the second price.

15. The method of claim 11, further comprising the central system providing the retailer with pricing data, the pricing data comprising one or more price points prevailing during the second time period, wherein the retailer bills the consumer for the consumption of the commodity at a retail price prevailing during the second time period.

16. The method of claim 11, further comprising the central system providing the retailer with pricing data, the pricing data comprising a retail price of the commodity on a particular day when the commodity is delivered to the physical location of the consumer, wherein the retailer bills the consumer for the amount of consumption of the commodity at the retail price of the commodity on the particular day.

17. The method of claim 11, further comprising the central system presenting a user interface on a device associated with the consumer, the device being communicatively connected to the central system over a third network connection, wherein the user interface comprises a price option for the consumer to lock into a particular price of the commodity, and wherein the retailer bills the consumer for the amount of consumption of the commodity during the second time period at the particular price of the commodity selected by the consumer via the user interface.

18. A computer program product comprising at least one non-transitory computer readable medium storing instructions translatable by at least one processor of a central system, wherein the central system operates on one or more server machines communicatively connected to a retailer back office system over a first network connection and a supplier back office system over a second network connection, wherein the central system is independent of the retailer back office system and the supplier back office system, and wherein the instructions when translated by the at least one processor of the central system cause the central system to perform:

tracking consumption of a commodity at a physical location of a consumer, wherein the commodity is obtained from a supplier and delivered to the physical location by a retailer, wherein the retailer back office system is owned and operated by the retailer and external to the central system and the supplier back office system, and wherein the supplier back office system is owned and operated by the supplier and external to the central system and the retailer back office system;

determining whether to reimburse or pay the supplier for a total amount of the commodity that the retailer has obtained from the supplier during a first time period pursuant to a first agreement between an operator of the central system and the supplier;

communicating to the retailer an amount of consumption of the commodity at the physical location of the consumer during a second time period, wherein the retailer bills the consumer for the amount of consumption of the commodity at the physical location of the consumer during the second time period pursuant to a second agreement between the operator of the central system and the retailer;

determining or obtaining a total amount of the commodity that the retailer has delivered to a set of consumers during the first time period; and

billing the retailer for a difference between the total amount of the commodity that the retailer has obtained from the supplier during the first time period and the total amount of the commodity that the retailer has delivered to the set of consumers during the first time period.