SYSTEM AND METHOD OF DETERMINING A RETAIL COMMODITY PRICE WITHIN A GEOGRAPHIC BOUNDARY

• US 20080313014A1
• Filed: 02/12/2008
• Published: 12/18/2008
• Est. Priority Date: 02/12/2007
• Status: Active Grant

• Current Assignee: Pricelock, Inc.
• Original Assignee: Pricelock, Inc.
• Inventors: Painter, Scott, Fell, Robert M., Bonsignore, Michael R., Gros, Thomas D., Magnuson, Gary A., Reed, Brian P.
• Granted Patent: US 8,538,795 B2
• Time in Patent Office: Days
• US Class Current: 705/10
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0202 Market predictions or forecasting for commercial activities
• CPC Class Codes: G06Q 30/0283 Price estimation or determination
• CPC Class Codes: G06Q 50/06 Energy or water supply

Abstract

Disclosed are a method and system for determining a retail price for a commodity within a geographic boundary. Retail prices for the commodity may be obtained from various sources, such as observers, third-party reporting, transactional data, and self-reporting. The retail price for each source may be analyzed to determine a risk factor. The retail prices from all sources associated with a location may be compared to determine a composite retail price for the location. The retail prices for all the locations within the geographic boundary may be analyzed to generate an aggregate composite price for the commodity within the geographic boundary. The analysis may include using a weighted formula. The analysis may include a volume proxy.

Claims

1. A method for determining a retail commodity price within a geographic boundary, comprising:

obtaining from a first source a retail price on a commodity at a plurality of locations within a geographic boundary;

obtaining from a second source a retail price on the commodity at the plurality of locations within a geographic boundary;

generating a composite retail price at each of the plurality of locations using the first source retail price and the second source retail price; and

generating an aggregate composite price of the commodity within the geographical boundary using the composite retail price at each location within the geographic boundary.

2. The method of claim 1, wherein the first source retail price comprises one or more of an observed price, a transactional price, a self-reported price, and a third party reported price.

3. The method of claim 2, wherein the second source retail price comprises one or more of an observed price, a transactional price, a self-reported price, and a third party reported price.

4. The method of claim 1, wherein generating a composite retail price at each location comprises comparing each observed price from an observer with observed prices received from other observers.

5. The method of claim 1, wherein generating a composite retail price at each location comprises determining a confidence factor for each of the plurality of locations within the geographic boundary.

6. The method of claim 1, further comprising analyzing the first source or the second source based on one or more criteria associated therewith.

7. The method of claim 1, wherein generating the aggregate composite price for the commodity within the geographical boundary comprises:

multiplying the composite retail price of the commodity for each of the plurality of locations within the geographic boundary by the amount of the commodity attributed to that location; and

dividing the product by the amount of the commodity attributed to the plurality of locations within the geographic boundary.

8. The method of claim 7, wherein the amount of the commodity attributed to at least one of the plurality of locations within the geographic boundary is determined based on a volume proxy.

9. A computer-readable medium carrying program instructions executable by a processor to perform:

obtain from a first source a retail price on a commodity at a plurality of locations within a geographic boundary;

obtain from a second source a retail price on the commodity at the plurality of locations within a geographic boundary;

generate a composite retail price at each of the plurality of locations using the first source retail price and the second source retail price; and

generate an aggregate composite price of the commodity within the geographical boundary using the composite retail price at each location within the geographic boundary.

10. The computer-readable medium of claim 9, wherein the first source retail price comprises one or more of an observed price, a transactional price, a self-reported price, and a third party reported price.

11. The computer-readable medium of claim 10, wherein the second source retail price comprises one or more of an observed price, a transactional price, a self-reported price, and a third party reported price.

12. The computer-readable medium of claim 11, wherein the program instructions are further executable by the processor to compare each observed price from an observer with observed prices received from other observers.

13. The computer-readable medium of claim 9, wherein the program instructions are further executable by the processor to determine a confidence factor for each of the plurality of locations within the geographic boundary.

14. The computer-readable medium of claim 9, wherein the program instructions are further executable by the processor to perform evaluating each of the one or more sources based on one or more criteria associated therewith.

15. The computer-readable medium of claim 9, wherein the program instructions are further executable by the processor to:

multiply the composite retail price for the commodity for each of the plurality of locations within the geographic boundary by the amount of the commodity attributed to that location; and

divide the product by the amount of the commodity attributed to the plurality of locations within the geographic boundary.

16. The computer-readable medium of claim 15, wherein the program instructions are further executable by the processor to determine a volume proxy for at least one of the plurality of locations within the geographic boundary.

17. A system comprising:

a processor;

a computer-readable medium carrying program instructions executable by the processor to perform;

obtaining from a first source a retail price on a commodity at a plurality of locations within a geographic boundary;

obtaining from a second source a retail price on the commodity at the plurality of locations within a geographic boundary;

generating a composite retail price at each of the plurality of locations using the first source retail price and the second source retail price; and

generating an aggregate composite price of the commodity within the geographical boundary using the composite retail price at each location within the geographic boundary.

18. The system of claim 17, wherein the first source retail price comprises one or more of an observed price, a transactional price, a self-reported price, and a third party reported price.

19. The method of claim 18, wherein the second source retail price comprises one or more of an observed price, a transactional price, a self-reported price, and a third party reported price.

20. The method of claim 17, wherein generating a composite retail price at each location comprises comparing each observed price from an observer with observed prices received from other observers.

21. The system of claim 17, wherein the program instructions are further executable by the processor to perform:

determining a confidence factor for each of the plurality of locations within the geographic boundary.

22. The system of claim 17, wherein the program instructions are further executable by the processor to perform:

multiplying the composite retail price for the commodity for each of the plurality of locations within the geographic boundary by the amount of the commodity attributed to that location; and

dividing the product by the amount of the commodity attributed to the plurality of locations within the geographic boundary.

23. The system of claim 22, wherein the program instructions are further executable by the processor to determine a volume proxy for at least one of the plurality of locations within the geographic boundary.

24. A method for determining a retail commodity price within a geographic boundary, comprising:

obtaining from an observation source a retail price on a commodity at a plurality of locations within a geographic boundary;

obtaining from a transaction source a retail price on the commodity at the plurality of locations within a geographic boundary;

generating a composite retail price at each of the plurality of locations using the observation source retail price and the transaction source retail price; and

generating an aggregate composite price of the commodity within the geographical boundary using the composite retail price at each location within the geographic boundary.

25. The method of claim 24, further comprising:

obtaining a self-reported retail price on the commodity at the plurality of locations within a geographic boundary,

wherein generating a composite retail price at each of the plurality of locations uses the observation source retail price, the transaction source retail price and the self-reported price.