Granted Patent B2

US 7,124,116 · App. 09/740,004 · Granted Oct 17, 2006

Abstract

Claims (28)

1. A computer-based method for setting market-adapted prices for prices for planning prices for a plurality of target products, said method comprising the following steps:

determining a current price for each target product of said plurality of target products;

obtaining market prices for a set of products competitive to each of said target products;

for each said set of products, calculating a first quartile price and a third quartile price and a percentage difference between said first and third quartile prices;

sorting, electronically, said first and third quartile prices for each product set based on said percentage difference between said first and third quartile prices;

displaying a graph of said sorted first and third quartile prices such that the first and third quartile pricing for said product sets having a smaller percentage difference are plotted on one end of the graph and said first and third quartile pricing for said product sets having a larger percentage difference are plotted on the other end of the graph; and

setting prices, in a database, for each of said product sets based on said graph wherein the prices for the product sets are set closer to an average or median of the market prices of the competitive products for product sets having the smaller percentage difference and the prices for the product sets are set further from the average or median for product sets having the larger percentage difference.

2. A method as in claim 1 , further comprising further displaying on said graph a plot of the price for each target product of said plurality of target products.

3. A computer-based method for performing market-adapted price planning for a plurality of target products in a market wherein market prices are published in advance, said method comprising the following steps:

determining a current price for each target product of said plurality of target products;

obtaining market prices for a set of competitive products competitive to each of said target products;

determining a range of prices for each of the competitive products;

correlating relative price sensitivity with the prices of the competitive products over said range wherein smaller differences between the prices of the competitive products indicate a higher sensitivity and larger differences between the prices of the competitive products indicate a lower sensitivity; and

setting a new price, in a database, for each of said target products based on the range of prices for each of the competitive products and the correlated relative price sensitivity, wherein the prices for each target product are set by the computer closer to an average or median of the prices of the competitive products when the relative price sensitivity is high and are set by the computer further from said average or median when the relative price sensitivity is low.

4. A method as in claim 3 wherein different quartiles of the prices of the competitive products are selected based on whether the product is determined to be of a competitive leader price type or of a competitive follower price type.

5. A method as in claim 3 , further comprising:

calculating quartile prices of said market prices for competitive products; and

setting said new price for each of said target products based also on at least one of said quartile prices.

6. A method as in claim 5 , wherein first and third quartile prices are calculated and at least one of the first and third quartile prices is used in determining said potential new price for each of said target products.

7. A method as in claim 6 , wherein a further factor is calculated that represents the difference between said third quartile and said first quartile prices and said further factor is used in determining said new price for at least one of said target products.

8. A method as in claim 3 , wherein product price types are allocated by a seller of said target products and wherein a first product price type comprises a competitive leader price type that identifies a product that the seller determines should generally be priced above other products in the market competitive thereto, and a second product price type comprises a competitive follower price type that identifies a product that the seller determines should generally be priced below other products in the market competitive thereto, and setting of the new price is further based on the product price types of the target products.

9. A method as in claim 8 , wherein a third product price type comprises a captive price type that identifies a product having no significant direct competitors but whose price is constrained by similar products in the marketplace.

10. A method as in claim 3 , wherein a set of pricing parameters is provided which comprises a decrease switch and at least one decrease factor, and the new price for each said target product is determined based on an algorithm wherein:

if said decrease switch is on, and if said current price is greater than said average or median price, said new price is set equal to a first quartile price plus a first decrease factor of said at least one decrease factors multiplied by a calculated factor representing the difference between the first quartile price and a third quartile price and, if said new price is less than said current price, said new price is reset to said current price.

11. A method as in claim 3 wherein a set of pricing parameters is provided which further comprises an increase switch and at least one increase factor, and wherein the new price for each said target product is determined based on an algorithm wherein:

if said increase switch is on, and if said current price is greater than said average or median price, said new price is set equal to a first quartile price plus a first increase factor of said at least one increase factor multiplied by a calculated factor representing the difference between the first quartile price and a third quartile price and, if said new price is greater than said current price, said new price is reset to said current price.

12. A method as in claim 10 , wherein, in said algorithm, if said current price is less than said average or median price, said new price is set equal to said first quartile price plus a second decrease factor multiplied by said calculated factor and, if said new price is less than said current price, said new price is reset to said current price.

13. A method as in claim 11 , wherein, in said algorithm, if said current price is less than said average or median price, said new price is set equal to said first quartile price plus a second decrease factor multiplied by said calculated factor and, if said new price is less than said current price, said new price is reset to said current price.

Assignments (6)