Pricing model system and method
AssigneeAvanous, Inc.
InventorAnthony J. Pericle
Life of this patent
Estimating the term…
Abstract
A pricing model may be used by a decision maker in the evaluation of prices of numerous items to multiple customers. The present system and method facilitates targeted and strategic pricing decisions that increase profitability and avoid unnecessary risks in pricing changes. The method includes the analysis of three categories of information—sales volume, purchase frequency and gross profit percent.
Claims18
A method for determining a price for a plurality of different types of items to be presented to a specific customer, the method comprising the steps of:
- providing a sales information database comprising
- a) the sales history of items sold to a plurality of customers, and
- b) the gross profit of the sale of each item to each customer;
- for each customer, calculating the sales volume, purchase frequency and gross profit percent for each item sold to that customer;
- for the specific customer for whom the prices are being determined, comparing the foregoing calculation of the categories of sales volume, purchase frequency and gross profit percent with corresponding sales to the other customers;
- and
- using the comparison to reach a pricing decision for the plurality of items offered for sale to the specific customer.
A method of calculating a sales risk ratio for use in making pricing decisions comprising the steps of:
- providing
- a) a database of historical sales of a plurality of items to a specific customer, and
- b) a proposed sales price list comprising price increases for some of the plurality of items;
- and
- calculating the sales risk ratio of customer sales of items with price increases as compared to the total sales to that customer.
A method of calculating a frequency risk ratio for use in making pricing decisions comprising the steps of:
- providing
- a) a database of historical sales of a plurality of items to a specific customer, and
- b) a proposed sales price list comprising price increases for some of the plurality of items;
- and
- calculating the frequency risk ratio comprising the frequency per hundred items of items with sales price increases based on the proposed sales price list.
Dependencies are inferred from the claim text.