# US 2014/0156438 A1 · Enhanced Online Dutch Auction with Seller Optimized Pricing Algorithms and Tabular Bidding Interface > Agents: this data is available as JSON from the patentgrep API and MCP server — see https://patentgrep.com/llms.txt - Number: US 2014/0156438 A1 - Document ID: US20140156438A1 - Status: Published application - Kind: A1 - Application number: 13/689,788 - Filed: 2012-11-30 - Published: 2014-06-05 - Earliest claimed: 2012-11-30 - Assignees: Timothy Rex Beavers - Inventors: Timothy Rex Beavers - Web page: https://patentgrep.com/patent/US20140156438A1 ## CPC - G06Q 30/08: Auctions - 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 ## Abstract The invention is an online Dutch auction where sellers can optimize the auction's pricing algorithm and related parameters to suit their needs and market conditions. Using the pricing algorithm, the invention creates BidBlocks for each price point, and places them in a tabular format or calendar where appropriate to simplify bidding. The invention always presents a “Buy It Now” option to shoppers to purchase the item at the current discount, or alternatively allows bidding on future price points. Active bidders are displayed in a Leaderboard which summarizes their status and relative placement. Numerous other features enhance the operability and usefulness of this invention for both buyers and sellers. ## Claims ### Claim 1 A method of conducting an online auction with automatic price adjustments comprising the steps of: (a) interfacing via a network between multiple client computing devices and a Web server running software applications and accessing a database to deliver requested content; (b) establishing the starting price, floor price, and reserve price for the item, as well as descriptions, policies, instructions and procedures; (c) establishing the starting quantity; (d) selecting the pricing algorithm; (e) selecting the criterion to start the pricing algorithm; (f) accepting current purchase orders based on the current calculated price; (g) accepting bids for purchase orders for price points that will occur in the future. ### Claim 2 (depends on 1) The method of claim 1 wherein the selected pricing algorithm of step (d) linearly reduces the price a set amount for each set interval of time from the start price down to but not going lower than the floor price. ### Claim 3 (depends on 1) The method of claim 1 wherein the selected pricing algorithm of step (d) iteratively reduces the price a set percentage in a compounding manner for each set interval of time from the start price down to but not below the floor price. ### Claim 4 (depends on 1) The method of claim 1 wherein the selected pricing algorithm of step (d) may, at the seller's option, be delayed or extended a set time period upon each purchase activity, effectively allowing the pricing algorithm to resume only after a set time period without purchase activity. ### Claim 5 (depends on 1) The method of claim 1 wherein the selected pricing algorithm of step (d) may, at the seller's option, have its time interval basis automatically overridden and substituted by a basis correlating to a desired sales rate, allowing for prices to automatically increase during periods of higher sales, remain steady during periods of optimum sales, or decrease according to the original pricing algorithm during periods of lower sales. ### Claim 6 (depends on 1) The method of claim 1 wherein the pricing algorithm of step (d) is used in combination with the starting price and the floor price to create a finite array of price points along with each price point's related data such as price, discount, n number, start time, end time, active bidders and their requested quantity and registered alerts. ### Claim 7 (depends on 6) The method of claim 6 wherein the array of price points is referenced to generate a graphical user interface (GUI) for each price point, allowing the bidder to perform any action related to that price point such as bidding, setting alerts, or viewing more details. ### Claim 8 (depends on 7) The method of claim 7 wherein the GUI of each price point may have its style or functionality altered by content, colors, borders, font effects or other means to allow bidders to quickly and easily assess that price point's status in various dimensions such as whether the price point is past, current or future, or whether the price point is occupied by bidders, or other metrics. ### Claim 9 (depends on 1) The method of claim 1 wherein the criterion of step (e) is set so that the pricing algorithm commences at a pre-determined time. ### Claim 10 (depends on 1) The method of claim 1 wherein the criterion of step (e) is set so that the pricing algorithm commences when consumer interest reaches a predetermined level. ### Claim 11 (depends on 10) The method of claim 10 wherein the level of consumer interest is scored by an algorithm based on measurable data points, such as numbers of bids, aggregate bid quantity requested vs. quantity for sale or numbers of views. ### Claim 12 (depends on 1) The method of claim 1 wherein buyers can either purchase at the current price, choose to wait for their desired price point to become active, or bid on their desired price point with their bid being recorded in a FIFO order of priority on that price point. ### Claim 13 (depends on 12) The method of claim 12 wherein bidders for multiple quantity items may also designate the quantity desired up to the seller's per person limit, and for the cases where they have requested a quantity greater than one, whether they will accept the sale of partial quantities less than requested. ### Claim 14 (depends on 12) The method of claim 12 wherein bids are recorded with an execution time, and processed at regular intervals to generate purchase orders for those bids whose execution time has been reached. ### Claim 15 (depends on 1) The method of claim 1 wherein the auction may be paused at the discretion of the seller and resumed at a later date. ### Claim 16 (depends on 1) The method of claim 1 wherein a single item auction may, at the seller's option, be ‘frozen’ after a sale is struck, and either finalized or resumed pending the outcome of the active sale. ### Claim 17 (depends on 1) The method of claim 1 wherein the seller may optionally require that bidders meet seller defined criteria before being granted permission to bid. ### Claim 18 (depends on 16) The method of claim 16 wherein the seller may create a whitelist, or conversely a blacklist of bidders to automate the granting of bidding permissions. ### Claim 19 (depends on 1) The method of conducting an auction of claim 1 wherein bidders are ranked and placed on a leaderboard depicting their rank order and relative status, and in the case of auctions with a multiple limited quantities, visually demarking bidders who will at the current point in time either be awarded a sale or not. ### Claim 20 (depends on 1) The method of conducting an auction of claim 1 wherein sales that are struck below the seller's reserve price are granted a pending status, where it becomes the seller's option to either accept or reject the sale without prejudice. ### Claim 21 (depends on 1) The method of conducting an auction of claim 1 wherein the core functionality is programmatically embedded on a third party host website, allowing for the host website to benefit from the excitement, attraction and user return rates of dynamic pricing while keeping the visitor at the host site. ### Claim 22 (depends on 1) The method of conducting an auction of claim 1 wherein the core functionality is ported to use as a plug-in application for a third party merchant hosting service.