Dynamic pricing of items based on sales criteria
A method of dynamically adjusting prices of items using a processor based upon the category to which the item is assigned and sales criteria of the item relative to other items in the category is disclosed. The items are of the type that are deliverable over a network.
1. A method, comprising:
identifying a plurality of media items belonging to a category;
grouping using a processor a first plurality of the media items identified as belonging to the category into a first group based on a sales criteria associated with each of the plurality of media items;
pricing each media item in the first group according to a first pricing strategy using a processor;
sending a first price determined by the processor using the first pricing strategy of a first item of the plurality of items in the first group for sale from a processor to one or more clients over a network;
grouping using a processor a second plurality of the media items identified as belonging to the category into a second group based on a sales criteria associated with each of the plurality of media items; pricing each media item in the second group according to a second pricing strategy;
sending a second price determined by the processor using the second pricing strategy of a second item of the plurality of items in the second group for sale from a processor to one or more clients over a network;
wherein the value of the sales criteria associated with each of the media items in the first group is superior to the value of the sales criteria associated with each of the media items in the second group and wherein the first pricing strategy generates a higher price for media items in the first group than the price generates for each media item in the second group by the second pricing strategy;
receiving one or more orders for the second of the plurality of items in the second group at the second price from one or more of the clients, updating the sales criteria for the second of the plurality of items in the second group using the processor, and regrouping the plurality of items into the first and second groups based on the updated sales criteria.
2. The method of claim 1 wherein the category identifies the type of work of the media item.
3. The method of claim 2 wherein the type of work of the media item is selected from the group of music, text, software or video.
4. The method of claim 1 , wherein the category identifies the genre of the media item.
5. The method of claim 1 , wherein the sales criteria associated with the media item is reflective of the volume of sales.
6. The method of claim 5 , wherein the sales criteria associated with each media item is the rank of the sales of the media item relative to the other media items identified as belonging to the category.
7. The method of claim 1 , wherein the sales criteria associated with the media item is reflective of the volume of sales.
8. The method of claim 7 , wherein the sales criteria associated with each media item is the rank of the sales of the media item relative to the other media items identified as belonging to the category.
9. The method of claim 1 , wherein the sales criteria associated with each item is profit.
10. The method of claim 1 , wherein the sales criteria associated with each item is revenue.
11. The method of claim 1 wherein the first pricing strategy generates a median price and further comprising randomly pricing each item in the first group within a price randomly distributed about the median price.
12. The method of claim 11 wherein the median price is dynamically adjusted.
13. The method of claim 1 wherein the first pricing strategy generates a price and further comprising pricing each item in the first group at the price.
14. The method of claim 13 , wherein the price is dynamically adjusted.
15. The method of claim 1 and further comprising:
grouping by a processor a third plurality of the items identified as belonging to the category into a third group based on a sales criteria associated with each of the plurality of items;
pricing each item in the third group according to a third pricing strategy;
wherein the value of the sales criteria associated with each of the items in the third group is inferior to the value of the sales criteria associated with each of the items in the second group and the third pricing strategy generates a lower price for each item in the third group than the second pricing strategy.
16. A method, comprising:
identifying a plurality of media items belonging to a category;
grouping by a processor a first plurality of the media items identified as belonging to the category into a first group based on a sales criteria associated with each of the plurality of media items;
pricing each media item in the first group according to a first pricing strategy by a processor;
sending a first price determined by the processor using the first pricing strategy of a first item of the plurality of items in the first group for sale from a processor to one or more clients over a network;
grouping by a processor a second plurality of the media items identified as belonging to the category into a second group based on a sales criteria associated with each of the second plurality of media items;
pricing each media item in the second group according to a second pricing strategy;
sending a second price determined by the processor using the second pricing strategy of a second item of the plurality of items in the second group for sale from a processor to one or more clients over a network;
the sales criteria associated with each of the media items in the first group and the sales criteria associated with each of the media items in the second group is from one of profit, revenue, absolute sales numbers, cost and marginal cost,
the value of the sales criteria associated with each of the media items in the first group is superior to the value of the sales criteria associated with each of the media items in the second group, and
the first pricing strategy is associated with one of ranking of sales volume for a media item in the first group as compared to all other media items, all other media items in the first group, and all other media items with same artist, and
the second pricing strategy is associated with one of ranking of sales volume for a media item in the second group as compared to all other media items, all other media items in the second group as compared to all other media items, all other media items in the second group, and all other media items with same artist;
receiving one or more orders for the second of the plurality of media items in the second group at the second price from one or more of the clients, updating the sales criteria for the second of the plurality of items in the second group by the processor, and regrouping the plurality of items into the first and second groups based on the updated sales criteria.
17. The method of claim 16 , the first pricing strategy generates a higher price for media items in the first group than the price generated for each media item in the second group by the second pricing strategy.
18. The method of claim 16 , further comprising:
grouping by a processor a third plurality of the items identified as belonging to the category into a third group based on a sales criteria associated with each of the plurality of items; and
pricing each item in the third group according to a third pricing strategy;
the value of the sales criteria associated with each of the items in the third group is inferior to the value of the sales criteria associated with each of the items in the second group and the third pricing strategy generates a lower price for each item in the third group than the second pricing strategy.