US5822736A
Expired / Lapsed
US
⏱️ 0.0 years remaining
Variable margin pricing system
Assignee: United Hardware Distributing Co
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Filing: 1995-02-28
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Granted: 1998-10-13
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Expires: 2015-02-28
Abstract
Abstract A variable margin pricing system and method that generates retail prices based on customer price sensitivity. Products are grouped into pools from a first pool for most price sensitive products to a last pool for least price sensitive products. A logical relationship between margins and the customer price sensitivity is determined for the products. Based on this logical relationship and each product's pool assignment, the system and method calculate each product's margin and corresponding retail price. The method is also used to generate retail price labels having retail prices based on customer price sensitivity for the products to which the labels are to be affixed or located proximate.
Inventors
- 👤 David J. Hartman
- 👤 Frank Lewandowski
Bibliographic Details
Application Number
—
Jurisdiction
US
Data Source
google_patents
Last Synchronized
2026-11-01 20:08
CPC Classifications
G; G06; G06Q; G06Q20/00; G06Q20/08; G06Q20/20; G06Q20/201; G06Q20/208; G06Q30/00; G06Q30/02; G06Q30/0201; G06Q30/0206; G06Q30/0283
Claims Analysis
Total Claims: 8
Claim 1
Independent Claim
155 words
A method implemented by a computer for generating retail prices for products using variable margins based on customer price sensitivity for the corresponding products, comprising the steps of: electronically dividing a group of products into a series of pools ranging from a first pool in the series for products having a highest price sensitivity to a last pool in the series for products having a lowest price sensitivity; receiving electronic product cost information including a cost for each of the products; and electronically generating from the cost information retail prices for the products, comprising assigning a first retail price margin to each of the pools, the first retail price margins decreasing from the first pool to the last pool, and assigning varying retail price margins to the products in each of the pools, the varying retail price margins decreasing from the first retail price margin as the product costs increase within each of the pools.
Claim 2
Independent Claim
155 words
A method implemented by a computer for generating retail prices for products using variable margins based on customer price sensitivity for the corresponding products, comprising the steps of: electronically dividing a group of products into a series of pools ranging from a first pool in the series for products having a highest price sensitivity to a last pool in the series for products having a lowest price sensitivity; receiving electronic product cost information including a cost for each of the products; and electronically generating from the cost information retail prices for the products, comprising assigning a first retail price margin to each of the pools, the first retail price margins decreasing from the first pool to the last pool, and assigning varying retail price margins to the products in each of the pools, the varying retail price margins decreasing from the first retail price margin as the product costs increase within each of the pools.
Claim 3
Dependent Claim
26 words
The method of claim 1 wherein the generating step comprises the step of assigning the margins based on a logarithmic relationship between retail price and cost.
Claim 4
Dependent Claim
39 words
The method of claim 1 wherein the generating step comprises the step of calculating the retail prices using the formula: retail price=cost/((1-M1)+K2log(cost)), wherein M1 is a predetermined margin at a particular cost and K2 is a predetermined constant value.
Claim 5
Dependent Claim
25 words
The method of claim 1 wherein the generating step comprises the step of altering the generated retail prices according to predetermined final price rounding rules.
Claim 6
Dependent Claim
24 words
The method of claim 1, further comprising the step of allowing a user to manually alter one or more of the generated retail prices.
Claim 7
Dependent Claim
18 words
The method of claim 1 wherein the method is used to generate the retail prices for hardware products.
Claim 8
Dependent Claim
17 words
The method of claim 1, further comprising the step of interrelating the pools based on predefined criteria.
References Cited (Backward Citations)
USPTO Annuity & Maintenance Windows
| Annuity Stage | Window Opens | Payment Deadline | Surcharge Period Until | Estimated Fee | Status |
|---|---|---|---|---|---|
| 3.5 Years (Year 4) | 2001-10-12 | 2002-04-13 | 2002-10-13 | $2000.00 | Window Closed / Lapsed |
| 7.5 Years (Year 8) | 2005-10-12 | 2006-04-13 | 2006-10-13 | $3760.00 | Window Closed / Lapsed |
| 11.5 Years (Year 12) | 2009-10-12 | 2010-04-13 | 2010-10-13 | $7700.00 | Window Closed / Lapsed |