AU781666B2 - System and method for selling items - Google Patents

Description

Our Ref:7708700 P/00/01Il Regulation 3:2

AUSTRALIA

Patents Act 1990

ORIGINAL

COMPLETE SPECIFICATION STANDARD PATENT Applicant(s): Joel James Montgomery 120 Purchase Road Cherrybrook New South Wales 2126 Australia

AND

Kenny Ghen-Yue Liao Lucinda Road Marsfield New South Wales 2122 Australia Address for Service: DAkv'1Ls c7ELLI~fsN C -Pitent Trade Mark Attorneys, Lee 10, 10a B -2-=-;icok Sro- SYDNEY SIAT Mon- ,u2,6 Invention Title: System and method for selling items The following statement is a full description of this invention, including the best method of performing it known to me:- 5020 p.\uAdocs= m c r76045 0 x-3 May. 2002 -1- SYSTEM AND METHOD FOR SELLING ITEMS Background of the Invention The present invention relates to a system and method for selling items, and in particular, to such a system and method which is an alternative to the traditional manner of selling an item, whereby, an element of chance is introduced.

Description of the Prior Art The reference to any prior art in this specification is not, and should not be taken as, an acknowledgement or any form of suggestion that such prior art forms part of the common general knowledge in Australia.

A variety of methods and systems for selling an item are traditionally well known and understood.

Other than the most common retailing method where a set price is displayed on an item and a buyer merely pays the set price for the item, it is becoming increasingly popular to sell products by alternative methods, whereby the sale price is more reflective of the current market, such as, via auctions. In this method of selling, either in conventional retail outlets, or, more recently, via the Internet, potential buyers bid for the item on sale.

Also, it is becoming increasingly popular for persons to participate in lotteries and other games of chance, such as lotteries, lotto, pool, etc. In such games of chance, the participants may be required to pay a price in the form of an entry fee for them to be able to participate in the game.

Heretofore, methods of selling are not known to be combined with games of chance.

Summary of the Invention The present invention seeks to provide a method and system for selling an item, which differs from the prior art.

The present invention seeks to provide a method of selling an item, which combines the traditional methods of selling, with a game of chance.

In one broad form, the present invention provides a method of selling an item, including the steps of: dividing a predetermined price for an item into a predetermined plurality of units; selling each unit to one of a plurality of potential buyers for a predetermined unit price; and, randomly selecting a winning buyer from said plurality of potential buyers; wherein one or more agent fee for conducting the sale of the item is either incorporated within, or added to, said predetermined price.

Preferably, said predetermined price for said item is selected to be related to a market 20 value for the item to be sold, such as, but not limited to, substantially equivalent to a i market value.

Preferably, said agent fee is a predetermined percentage, for example, 10% or of a e: .00 I predetermined price.

Preferably, said market value is determined by any one or combination of one or more agents and one or more seller.

Also preferably, said predetermined plurality of units is selected according to market s~pdmspm7676045W0 doc.15 May. 2002 -3forces and/or other factors by any one or combination of one or more agents and one or more seller.

In a preferred form, said selling step is continued for a predetermined period of time, for example, one day, one week, or one month, or, until all units are sold.

In perhaps a most preferred form, said method is at least partly performed using one or more computer.

Preferably, said method is at least partly performed using a network of computers, such as, but not limited to the Internet.

In a most preferred form, the sale of the item is advertised on the Internet, units are sold via the Internet and/or a winning buyer is notified via the Internet.

In a preferred embodiment, plurality of agents may receive a proportion of said agent fee(s), according to whether they are a primary agent, a secondary agent, a promoter or other type of agent.

Preferably, the seller(s) and the agent(s) are paid either prior to or after selection of the winning buyer.

In a preferred embodiment, if not all units become sold, said item is returned to the seller(s).

Alternatively, but also preferably, if no all units become sold, the predetermined unit price may be increased.

Alternatively, but also preferably, if no all units become sold, the predetermined sale price may be adjusted.

-4- In a further broad form, the present invention provides a system for selling items, said system including: input means, for inputting information including a predetermined price of an item, and details corresponding to a seller and a plurality of buyers; processor means, for calculating, from said predetermined price of an item, the number of units to be sold; memory means, for storage of details corresponding to said seller and each of said plurality of buyers; selector means, for randomly selecting a winning buyer from said plurality of buyers; and, output means, to indicate said winning buyer, wherein one or more agent fee for conducting the sale of the item is either incorporated within, or added to, said predetermined price.

i Brief Description of the Drawings The present invention will become more fully understood from the following detailed description of the preferred but non-limiting embodiments thereof, described in connection with the accompanying drawings, wherein: Fig. 1 illustrates a flow chart of the system and method in accordance with a "preferred embodiment of the present invention; 20 Fig. 2 illustrates how a seller can interact with the operator/agent, either directly or via a secondary agent; Fig. 3 illustrates how a buyer can either purchase units directly via the operator/agent, via a secondary agent, or a promoter; and S"Fig. 4 illustrates the basic components of a system embodied in accordance with the present invention.

Detailed Description of Preferred Embodiments The method of selling the item in accordance with the present invention includes a number of steps, as perhaps best illustrated in the flow chart of Fig. 1.

The item which may be typically sold, by the system and method of the present invention, is preferably an item of significant value such as a house, or a car, although the invention is dms\d speci76D4500 dm- 15 May. 2002 not necessarily limited to such items. It will however be appreciated that the appeal of use of the method and system of the present invention is considered to be more relevant for items of higher value, in that they are items whereby participants would be willing to pay a relatively small amount, being aware that there is an element of chance in ultimately receiving the item, which is of significant value.

The system and method of the present invention is therefore an alternative to the traditional way of selling the item, whereby an element of chance is introduced in to the sale, at least so far as the buyers are concerned, whilst there is no risk that the seller does not receive his required price for the sale of the item.

The initial step is for a seller to nominate that an item is for sale. Once any preliminary contracts, obligations, etc., are agreed to by the seller, and the item is valued, a determination of the number of units to be sold to potential purchasers is made. This value and unit size can be referred back to the seller, and, optionally, the seller could alter this as desired according to expectations. In order to confirm the seller's commitment, the seller may at this stage may preferably pay a deposit and/or an administration fee to the operator or agent, and then the item may be published and advertised for sale. The ultimate selling price of the item is therefore divided into units, with each unit being sold separately to a number of potential buyers. The total number of units multiplied by the selling price of each unit may therefore typically equal the total selling price. Once the buyer agrees to any terms and conditions set by the operator or agent, a buyer may purchase one or more units. Once all the units are purchased, a winning buyer may be drawn, and is notified.

Any necessary contract is signed, and the seller's and operator's commission may be paid, the item then being considered to be sold.

In a preferred but non-limiting form, the predetermined price for the item may typically be selected to be substantially equivalent to a market value for the item to be sold. This predetermined price may incorporate one more agent fee for conducting the sale of the item. The agent fee may be a set amount or predetermined proportion of the predetermined price, either integrated with, or added to, the predetermined price. For P:\-pdocs\ m\specA7604500 do-15 May. 2002 -6example, a predetermined percentage, for example, 10% of of the predetermined price may be added, to become the agent(s) fee.

In order to select the predetermined price, an agent or a valuer experienced in the art of valuing the particular type(s) of items for sale is more preferably utilised, to consider any traditional market forces and/or other factors which may prevail at the time of selling the item. The system does however permit the ability for the client to be able to adjust the price according to their expectations, just as presently occurs in setting the reserve in auctions.

The sale of the item may be progressed for any desired predetermined period of time, for example, a day, a week, a month, or, until all units are sold. In the event that not all units become sold, the item may either be simply returned to the seller, the predetermined unit price could be increased, the predetermined sale price could be adjusted, or, an alternative or traditional method of selling could be used for sale of the item.

As shown in Figs. 2 and 3, other than the primary operator or agent, secondary agents, promoters and other persons could become involved in the system and method of the present invention. According to their input into the system, which may be formalised by contracts, they could then receive a percentage of the agent's commission, or, a set fee. As such, a seller can either register directly with the operator (primary agent), or through a secondary agent, whereby the secondary agent receives a percentage or other part of the commission of the primary agent's fee for introducing the sale, such as shown in Fig. 2.

As illustrated in Fig. 3, a buyer can either purchase a unit directly from the primary agent or operator, or, could purchase a unit via a promoter or through a secondary agent. A promoter could typically receive a set price commission should the client they recommend win. Various contractual arrangements whereby promoters must commit to a certain amount of recommendations per month, may be set up according to traditional business practice rules.

PApdocmsr\=d p=7604500 doc-l May. 2002 -7- It will be appreciated that the present invention particularly lends itself to being performed using one or more computers, such as, but not limited to the Internet. In such a system and method, the item may be easily advertised on the Internet, units may be sold to buyers via the Internet, and the winning buyer could be notified via the Internet.

It will be appreciated that the present invention has particular differences and advantages over the traditional methods and systems for selling items.

According to the method and system hereinbefore described, the seller may receive the full value of the item which they sell. Any advertising or agent's fees may be placed on top of the selling price. It will be appreciated that the buyer may also bid for the item they are selling, and that there exists the opportunity to "double dip". The seller also gets the item professional valued at no cost. Other arrangements could include systems where the seller receives a certain percentage above the market value, say The advantages to the prospective buyer is that there is relatively low risk, with a good chance for winning, and therefore receiving the item at a substantially reduced cost.

The advantages for one or more agent is that commission is received without necessarily affecting the price the seller receives, as the agent(s) fee can be introduced atop the price required by the seller. A plurality of secondary agents or promoters may be used, as desired, according to any traditional business method practices.

It will be appreciated by persons skilled in the art that numerous variations and modifications will become apparent to the method and system hereinbefore described. All such variations and modifications should be considered to fall within the spirit and scope of the invention.

Claims (14)

1. A method of selling an item, including the steps of: dividing a predetermined price for an item into a predetermined plurality of units; selling each unit to one of a plurality of potential buyers for a predetermined unit price; and randomly selecting a winning buyer from said plurality of potential buyers; wherein one or more agent fee for conducting the sale of the item is either incorporated within, or added to, said predetermined price.

2. A method as claimed in claim 1, wherein said predetermined price for said item S•is selected to be substantially equivalent to a market value for the item to be sold. S Is 3. A method as claimed in claim 1 or 2, wherein said agent fee is a predetermined percentage of a predetermined price. .ooo

4. A method as claimed in any one of claims 1 to 3, wherein said market value is •determined by any one or combination of one or more agents and one or more seller. @oeo A method as claimed in any one of claims 1 to 4, wherein said predetermined plurality of units is selected according to market forces and/or other factors by any one or combination of one or more agents and one or more seller.

6. A method as claimed in any one of claims 1 to 5, wherein said selling step is continued for a predetermined period of time, or, until all units are sold.

7. A method as claimed in any one of claims 1 to 8, wherein said method is a least partly performed using one or more computer.

8. A method as claimed in any one of claims 1 to 7, wherein said method is at least partly performed using a network of computers, such as, but not limited to the Intemrnet. A

9. A method as claimed in any one of claims 1 to 8, wherein the sale of the item is advertised on the Internet, units are sold via the Internet and/or a winning buyer is notified via the Internet.

10. A method as claimed in ano one of claims 1 to 9, wherein a plurality of agents may receive a proportion of said agent fee(s), according to whether they are a primary agent, a secondary agent, a promoter or other type of agent.

11. A method as claimed in any one of claims 1 to 10, wherein the seller(s) and the 1o agent(s) are paid either prior to or after selection of the winning buyer.

12. A method as claimed in any one of claims 1 to 11, wherein, if not all units become sold, said item is returned to the seller(s). S is 13. A method as claimed in any one of claims 1 to 11, wherein, if not all units become sold, the predetermined unit price may be increased. :o

14. A method as claimed in any one of claims 1 to 11, wherein, if not all units become sold, the predetermined sale price may be adjusted.

15. A system for selling items, said system including: input means, for inputting information including a predetennrmined price of an 0 item, and details corresponding to a seller and a plurality of buyers; processor means, for calculating, from said predetermined price of an item, the number of units to be sold; memory means, for storage of details corresponding to said seller and each of said plurality of buyers; selector means, for randomly selecting a winning buyer from said plurality of buyers; and, output means, to indicate said winning buyer, wherein one or more agent fee for conducting the sale of the item is either incorporated within, or added to, said predetermined price. io-

16. A method of selling an item, substantially as herein described.

17. A system for selling items, substantially as herein described with reference to the accompanying drawings. DATED this 16'h day of March, 2005 JOEL JAMES MONTGOMERY and KENNY-YUE LIAO