US 8,478,620 B2Granted

Profit comparison of extended warranties

AssigneeHewlett-Packard Development Company, L.P.

InventorsJulie Ward Drew, Filippo Balestrieri, Ruxian Wang

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Abstract

Systems, methods, and machine-readable and executable instructions are provided for profit comparison. Profit comparison can include determining a first profitability function of a flexible duration extended warranty offering with respect to a first plurality of warranty parameters and determining a second profitability function of a fixed duration extended warranty offering with respect to a second plurality of warranty parameters. Profit comparison can also include comparing the first function and the second function for at least one level of at least one of profit lift and flexible duration warranty offering coverage duration. Presenting results of the comparison for a range of values of the first and second plurality of warranty parameters can also be included in profit comparison.

Claims15

Dependent claims

A computer-implemented method for profit comparison comprising:

determining, via a computer, a first expected profitability of a flexible duration extended warranty offering based on a first plurality of warranty parameters including a demand for the flexible duration extended warranty offering, a probability of failure of hardware associated with the flexible duration extended warranty offering, and a price of the flexible duration extended warranty offering;
determining, via the computer, a second expected profitability of a fixed duration extended warranty offering based on a a second plurality of warranty parameters including a demand for the fixed duration extended warranty offering, a price of the fixed duration extended warranty offering, and a probability of failure of hardware associated with the fixed duration extended warranty offering;
comparing, via the computer, the first expected profitability and the second expected profitability to determine a profit lift of the flexible duration extended warranty offering over the fixed duration extended warranty offering;
and
presenting results of the comparison, via the computer, for a plurality of values of the first and second plurality of warranty parameters.

2 more elements

A non-transitory machine-readable medium storing a set of instructions for profit comparison executable by the computer to cause the computer to:

determine an expected profit of a flexible duration extended warranty offering based on a first plurality of warranty parameters including a demand for the flexible duration extended warranty offering, a price of the flexible duration extended warranty offering, and a probability of failure of hardware associated with the flexible duration extended warranty offering;
determine an expected profit of a fixed duration extended warranty offering based on a second plurality of warranty parameters including a demand for the fixed duration extended warranty offering, a price of the fixed duration extended warranty offering, and a probability of failure of hardware associated with the fixed duration extended warranty offering
determine an average coverage duration of a flexible duration extended warranty customer for which the expected profit of the flexible duration extended warranty offering equals a predetermined profit lift level over the expected profit of the fixed duration warranty offering as a function of the first and second plurality of warranty parameters;
fix values of a first portion of the first and second plurality of parameters;
and
present results of the average coverage duration determination for a plurality of values of a second portion of the first and second plurality of parameters.

3 more elements

Dependencies are inferred from the claim text.