Classifications

• • G—PHYSICS
  • G06—COMPUTING; CALCULATING OR COUNTING
  • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
  • G06Q30/00—Commerce
  • G06Q30/02—Marketing; Price estimation or determination; Fundraising

Definitions

• This invention relates to the sale of goods and/or services through an interactive website on the Internet.
• the Internet provides a medium that allows customers, including individual consumers and representatives of small and large entities, to shop conveniently from the home or office, without physically going to a store location. Consumers can shop at any time of the day, have access to a wide variety of products and services, and can purchase items either by browsing or going
• Internet search engines are available to assist prospective purchasers in locating websites where specific products, or types of products are being offered for sale. Manufacturers and distributors of various types of products and services have provided detailed descriptions and specifications at websites which they maintain. In some cases, manufacturers and distributors provide interactive purchase order display screens that permit customers to order, confirm the availability of, and pay for products via the Internet without any direct contact with the seller's personnel.
• a number of Internet marketers have succeeded by offering purchasers standard products, such as books, at a discounted price that is far below discounted prices offered at traditional book store outlets.
• the Internet marketer's lower price is based on an anticpated large volume of sale for a particular product, the discounted price is fixed and does not vary with actual volume of sales.
• the mail-order catalog fulfillment operation does not incur the costs of retail store leasing, fixture purchase and installation charges, sales personnel, cash registers, security, etc. , and can locate its fulfillment/distribution center in relatively less costly warehouse space, staffed with less-skilled workers.
• the mailorder business can secure volume discounts from national shippers, and the potential avoidance of state and with the avoidance of local sales tax, the cost of getting the goods into the hands of the purchaser should be less than through the normal retail channels of trade.
• Yet another object of the invention is to provide means for managing and operating an Internet website that will lease advertising space and time, provide consumer ordering, billing and acknowledgement services, generate order price confirmation information and shipping instructions to thereby provide marketers with new opportunities to meet customer needs and generate additional sales.
• the method and apparatus of the invention for operating a website on the Internet at which one or more products and/or services are offered for sale to consumers at an initial or base price and at one or more prospective lower prices that are correlated to or determined by the total number of sales orders for the specific product or service that are received by the seller.
• the discount, or reduced selling price can be based on each individual unit sold during a given time period, or can be reduced incrementally as the number of orders received reach specified numerical levels.
• the information for the product will include at least one target date in the future or a time limit by which the final selling price of the product will be confirmed to the buyer.
• the purchaser is provided with at least one option to extend the period of pendency of the order before shipment for the purpose of prospective entry of additional individual purchase orders that will further reduce the final purchase price for the product of interest.
• a first target date or time for determination of the total number of purchase orders and the correlated final sales price will be dependent upon a number of factors, including the total number of items that can be supplied from inventory or produced by the manufacturer.
• a first, second and additional target dates can be established at the outset so that predetermined, or
• the method of the invention can also be programmed to operate the system for the purchase of products at a special daily price if a sufficient number of orders are received, then the product will be sold at the specified lower price.
• the purchase order can be accepted with the understanding that it will be canceled if the volume of orders is insufficient to trigger the reduced final sales price and that the product will be shipped without further confirmation and the buyer billed at the end of the day, or other announced sale time.
• the invention comprehends the establishment of an interactive marketing website on the Internet and the posting to this website of displays of informational fields describing at least one, but preferably a plurality of products and/or services that are available for sale.
• informational fields describing at least one, but preferably a plurality of products and/or services that are available for sale.
• Also posted at the website in association with the product identification information is at least one lower alternative price and an associated number of prospective sales of the product that must be concluded in order for the initial or current price to be reduced ot the next lower alternative price
• a prospective purchaser or browser who visits the website is provided with information that establishes a direct correlation between the initial or current offering price for the product and the reduction in the price that will result from the confirmation of a specified number of prospective sales.
• the individual purchaser can therefore obtain the benefit of a specified quantity discount so long as the indicated number of purchase orders are confirmed in the future.
• a time period is also established during which the required number of purchase orders must be confirmed in order to secure a specified reduction or a lower price.
• incremental increases in the number of confirmed purchase order results in corresponding incremental decreases in the eventual final sales price of the product or service.
• the final sales price is entered into a data processing system and compared to all confirmed purchase orders.
• Purchase orders reflecting a sales price that is greater than the final selling price are sorted, and a credit for the price difference is transmitted to the purchaser's debit or credit account holder.
• a final confirmation of sale is also transmitted via e-mail, telephone, or facsimile to the purchaser.
• the final purchase order confirmation list is also transmitted to the fulfillment center, which may be the product's manufacturer, a regional or national distributor, wholesaler or local merchant.
• a notice can be transmitted to the purchaser with an option to rescind the purchase order, or to maintain the order for a further specified period of time. If the purchaser elects to rescind the order, a credit notice is transmitted to the purchaser's debit or credit account holder in the amount of the purchase price previously billed.
• the apparatus and method of the invention further comprehend according a purchaser of multiple units shipped to the same address a reduction from the pro rata shipping charges for a single unit to the same address; and according discounts to individuals or entities whose names appear on a "membership" list and/or to repeat purchasers, i.e. , to those who have completed a prescribed number of previous purchases in a prescribed period of time.
• Fig. 1 is a flow chart of a presently preferred embodiment of the method of the invention
• Figs. 2-5 are schematic illustrations of website screens depicting several aspects of the invention. Detailed Description of the Invention
• the website operator or product seller will typically allocate a web page or a portion of a page to a product and will typically include a picture of the product and a description which can be in the form of text, audio and/or visual display.
• the website can provide a hyper link to another website maintained by the manufacturer and/or distributor as part of a catalog of other products as illustrated in Fig. 1.
• the product descriptive page can also include information on pricing, such as the manufacturer's suggested retail price and prevailing prices at conventional retail and/or discount shopping outlets.
• Text and graphic or visual displays indicating the base price, target price, target date and current price can also be provided on the same page or on a separate page with the partially completed order form for the product or service.
• the webpage can include a visual display such as that depicted in Fig. 2 which depicts a series of bar graphs reflecting time and increasing quantities purchased.
• an appropriate instruction or icon is provided to guide the prospective purchaser, and to assist in completing the purchase order form.
• the buyer will be asked to select a target price and/or a target date for confirmation of the sale and fulfillment, and will also be asked to acknowledge the financial terms of the transaction including any non- refundable deposit, handling charges, service fees, and the like that will be billed to a debit or credit account holder.
• the purchaser will also be prompted to electronically store or print a record of the purchase order as completed and authorized for future reference in determining any price reductions, the status of the order and/or its fulfillment upon receipt of the product or service.
• the website will preferably include information displays relating to the original or base sales price and the current reduced price, if any, based on orders received. This information is presented in real time so that those who have already placed purchase orders as well as prospective buyers can see what price reductions have occurred since the product was originally entered at the website and offered for sale. Pricing information can be displayed in any number of graphic forms, including bar graphs, pie charts, numerical tabulations, or the like. Target price reductions can be correlated to display an estimated date upon which the target price will be reached based upon the number of units sold; or the estimated final sales price can be provided as of the target date, where the sale will conclude on a date certain period.
• the system can also advantageously be programmed to provide a real time graphic display at the website to display the purchase price as it may be reduced by each confirmed purchase order, or to indicate the rate at which orders are being received to achieve the next incremental price reduction.
• a real time graphic display at the website to display the purchase price as it may be reduced by each confirmed purchase order, or to indicate the rate at which orders are being received to achieve the next incremental price reduction.
• orders can be placed at stores, either directly by the customer or through the intermediary of a store clerk, at kiosks, or the like, established for the purpose, or
• the method of the invention comprehends and can accommodate a variety of payment and billing systems.
• the prospective buyer is a member of the prospective buyer.
• the "hold" amount is replaced with a charge and fund transfer to the
• a deposit in a predetermined dollar amount is charged to the buyer's credit or debit account at the time that the purchase order is processed and confirmed.
• a deposit in a predetermined dollar amount is charged to the buyer's credit or debit account at the time that the purchase order is processed and confirmed.
• non- refundable deposit can insure the seriousness of the buyer, and provide an incentive for the buyer to complete the transaction at the target date, as well as covering some or all of the seller or website operator's expenses and the profit
• the product transaction is stored in a register that can be accessed by the website operator and/or provider of the product on a real time basis so that sales data can be queried and
• the computer can be
• the apparatus and method of the invention thus provides a management tool to assist in the efficient planning of inventories, manufacturing, and raw material requirements.
• the fulfillment of product orders is preferably undertaken by the manufacturer, a national distributor or a regional warehouse facility by means that
• the system software identifies all purchasers associated with products having a specified target date for fulfillment and/or a target price.
• the target date whether
• a first, second or subsequent date is the parameter used to initiate the fulfillment process.
• the entry by the buyer of the purchase order may complete the transaction, with only the final sales price to be determined based on the total volume of sales within the target date.
• the initial or current sales price at the time the purchase order was entered has already been held or deducted from the debit or credit account of the buyer, and where the final sales price is lower, a credit transaction is processed to the buyer's account holder.
• the sales transaction is contingent upon the buyer's
• a message can be transmitted electronically to the buyer's facsimile address and/or via mail, requesting confirmation.
• the purchase order is entered on the fulfillment database and appropriate electronic and/or printed instructions are issued to the agency responsible for shipping the
• An acknowledgement can also be transmitted to the buyer with information of the expected shipping date. If no confirmation is received from the buyer within a prescribed period of time, the purchase order information is transferred to a
• an appropriate credit notice is transmitted to the buyer's credit or debit account holder, and preferably, a notice is also transmitted to the prospective buyer.
• the method of the invention is based upon the principle that it is less expensive to purchase items in larger quantities than it is to purchase them individually or in smaller orders. In the method of the invention, there is a direct correlation between the price of the item and the quantity of items ordered. The success of bulk discount shopping stores attests to the fact that there is a great demand for this type of price discount.
• the invention is based on the recognition that the Internet can serve as a practical means to economically offer a unique service to the public by means of specially programmed computers that would otherwise be impossible to provide.
• the invention differs from other quantity discount sales methods because it takes full advantage of the Internet's global commerce environment, allowing many people to take part in a unified purchasing transaction that simultaneously benefits all parties by reducing the purchase price of the product or service.
• quantitydiscount.com will be used to identify a website that exists to create a mutually beneficial commercial environment to all purchasers in the marketplace based on the principle of quantity discounts.
• the initial offering price, as well as one or more incremental discount prices, must be determined for each product or service offered at the website.
• the website operator may choose to commit to the purchase of a certain volume of goods with the expectation that they can be sold over a specified period of time at one or more incrementally discounted prices.
• Products in this category could include photographic film, batteries, small appliances, and the like, which are readily available from manufacturers and/or wholesalers in large volume on short notice.
• Products that are not expendable and/or that are more expensive, such as power tools, home appliances, jewelry, watches and more expensive gift items which can be expected to require a longer period of time for the accumulation of a significant number of confirmed purchase orders would preferably be sold in conjunction with the manufacturer, distributor or wholesaler, which entity can establish the discount schedule and related sales volume, as well as the time period and delivery schedule.
• the specific information for each product and/or service is entered into the memory storage device of an appropriately programmed general purpose computer of the type conventionally employed to support an Internet website in order to provide product/service inventory information in response to inquiries received from a plurality of individual sources via the Internet.
• the data processing software will also include an interactive purchase order display and entry system, a debit or credit account holder billing system and an accounting system.
• the implementation and use of commercially available systems to support and practice the method of the invention is within the skill of a systems and software designer.
• a graphic display such as that shown in Fig. 3 can be displayed to manufacturers or other suppliers by the website operator.
• the apparatus for the practice of the invention includes one or more appropriately programmed computers of the type conventionally used for establishing an Internet website used for electronic commerce.
• Appropriate software is commercially available for transmitting appropriate purchase order forms receiving the data entered by the prospective purchaser communicating with the purchaser's credit or debit account holder and confirming the placement in terms of the order.
• the ordering process by clicking on an appropriate icon associated with the product displayed on the screen which calls up a partially completed purchase order form upon which the remaining information is entered.
• the order is paid for using a debit or credit card account number and the buyer is given the option to either provide a
• the data processing system will, when queried, calculate and display the discount, which the shopper can compare to the original retail or initial offering price, thereby determining then-current savings.
• a toll-free number can be
• ski resort passes and the like. Consumers generally know well in advance that they will be buying such seasonal goods and services. Products are offered and orders are placed early in the year for outdoor gas grills in anticipation of summer barbecues; order periods for winter sports items and services scheduled in advance of winter gift-
• FIG. 5 An example of an element of a graphic screen display for use in a sale event for a gas barbecue grill is shown in Fig. 5. A similar display
• Some examples of consumer service providers that can benefit from the practice of the invention are lawn services, landscaping services, chimney sweeping
• a customer may purchase ongoing service packages offered at quantity discounts in a particular area. If a purchaser is interested in signing up for installation of television cable service,
• volume buying discounts works for all types of business enterprises, and in many instances can present smaller companies with an opportunity to "even the playing field" with their larger competitors.
• Other classes of purchasers such as individual municipalities can obtain price reductions on orders for standard items, e.g. , orange safety cones for new construction projects. Stop signs and street lights, concrete and reflective material can be purchased at a discount when combined with time-based orders from other municipalities, permitting smaller governmental agencies or units to obtain savings that otherwise could not be negotiated with suppliers.
• the website is established to include a registry for suppliers of specialized products or services to fulfill purchase orders in relatively small cells or geographic regions.
• This embodiment is conveniently illustrated by the following example which also describes a seasonal product and service that will be of interest in consumers residing in predetermined geographical areas.
• the product and service is the delivery of firewood in a specified unit, i.e. , a cord of wood.
• Various types of wood e.g. , pine, oak, etc. , can form subclasses of the product.
• the economics of handling and distribution dictate relatively small geographic areas over which a particular supplier can provide the service.
• the Internet operator therefore solicits suppliers at its website that will undertake to service a specified area. This information is entered into a supplier's database, along with minimum pricing and volume requirements and capabilities.
• fireplace wood can be posted to the website at any time in advance of the heating season with fulfillment target dates being established in relation to ⁇ average temperatures in particular geographic areas.
• the market can be subdivided and individual purchase orders processed according to postal zip codes.
• large volumes of orders that an individual local business might not be in a position to supply can be satisfied by truckload deliveries of the required product to the local distributor based upon advance orders.
• individual orders can be placed well in advance of the February 14th holiday and nationwide orders received at a single location can be
• Fig. 4 is a graphic data display used for correlating the incremental price reductions and reduced prices based upon the quantity of the orders received over time.
• the method and apparatus of the invention is also especially suited for the sale of less expensive consumer items such as batteries and photographic film under the terms of a sale transaction that has a very short duration.
• the sale period can be one day — or it can be measured in hours or even minutes — with fulfillment shipments being undertaken during the night or the following day.
• the price at the beginning of the day is reduced incrementally as new purchase orders are received and the reductions in price are posted in ten cent, five cent, or even one cent increments.
• a nominal value such as batteries, film and the like
• no subsequent confirmation of the order at the final purchase price will be required and all information will be held until the end of the day or other shortened buying period, to determine the final price; thereafter all orders for that day are batch-processed and billed to the individual buyer's credit or debit card holder's account.
• Another preferred embodiment of the apparatus and method of the invention includes the establishment of a "preferred purchaser" data list in a memory device.
• One form of preferred purchase list is a membership list in which members are identified either by their names or, preferably, by an identification number such as an individual's social security number or a legal entity's federal tax identification number or EIN.
• the website can display a different lower price or percentage of price reduction that will be afforded to preferred purchasers who are members.
• Many discount retailers have established membership fees and require all purchasers to identify themselves by displaying a membership card, which membership can only be maintained by payment of an annual fee; non-members are not allowed to make purchases.
• the method of the invention comprehends the acceptance of purchase orders from members and non-members alike, with members being afforded a lower price.
• the purchase order includes a data entry position relating to membership status, which is verified by comparing the purchase order data with a membership list maintained in a data storage register. If membership is verified successfully, this status is maintained in the purchase order data file and at the time of confirmation and/or final billing the lower member's price is identified for billing.
• a database is maintained of the names and/or identification numbers associated with purchase transactions that were completed in a past period of time.
• purchaser identification data from a new purchase order is received by the website server, it is compared to the database of prior purchasers during the prescribed past period of time, e.g. , twelve months.
• the system is programmed to display a current purchase price to a particular "preferred purchaser" that may be lower than the then-current general posted purchase price that appears at the web site, the lower price being based upon the number and/or dollar volume of previous completed purchases by the particular purchaser within the prescribed time period.
• the frequent purchaser is provided with an additional incentive in the form of a further discounted price afforded to preferred purchaser.
• This method can be applied to the embodiment where membership status affords the purchaser with a lower current price, whereby the member who is also a frequent purchaser receives a greater reduction in the final price than a non-member or another member who does not meet the prescribed requirements of a frequent purchaser.

Landscapes

• Business, Economics & Management (AREA)
• Engineering & Computer Science (AREA)
• Accounting & Taxation (AREA)
• Development Economics (AREA)
• Strategic Management (AREA)
• Finance (AREA)
• Game Theory and Decision Science (AREA)
• Entrepreneurship & Innovation (AREA)
• Economics (AREA)
• Marketing (AREA)
• Physics & Mathematics (AREA)
• General Business, Economics & Management (AREA)
• General Physics & Mathematics (AREA)
• Theoretical Computer Science (AREA)
• Management, Administration, Business Operations System, And Electronic Commerce (AREA)

Applications Claiming Priority (3)

Publications (2)

Family

ID=22946058

Family Applications (1)

Country Status (4)

Families Citing this family (10)

Citations (4)

Family Cites Families (7)

• 2000
  • 2000-02-09 EP EP00910126A patent/EP1203333A4/de not_active Withdrawn
  • 2000-02-09 CA CA002362467A patent/CA2362467A1/en not_active Abandoned
  • 2000-02-09 WO PCT/US2000/003421 patent/WO2000048104A1/en active IP Right Grant
  • 2000-02-09 AU AU32269/00A patent/AU767988B2/en not_active Ceased

Patent Citations (4)

Non-Patent Citations (2)

Also Published As

Similar Documents

Legal Events