as) United States
`a2) Patent Application Publication co) Pub. No.: US 2012/0203611 Al
`(43) Pub. Date:
`Aug. 9, 2012
`Mesaros
`
`
`US 20120203611A1
`
`(54)
`
`DISCOUNTED PRICING
`
`(76)
`
`Inventor:
`
`Gregory J. Mesaros, Tampa, FL
`(US)
`
`(21)
`
`Appl. No.:
`
`13/449,658
`
`(22)
`
`Filed:
`
`Apr. 18, 2012
`
`(63)
`
`(60)
`
`Related U.S. Application Data
`
`Continuation of application No. 13/292,971, filed on
`Nov. 9, 2011, which is a continuation of application
`No. 09/922,884, filed on Aug. 6, 2001, which is a
`continuation-in-part of application No. 09/324,391,
`filed on Jun. 3, 1999, now abandoned,said application
`No. 09/922,884 is a continuation-in-part ofapplication
`No. 09/426,063, filed on Oct. 22, 1999, now Pat. No.
`7,818,212, which is a continuation-in-part of applica-
`tion No. PCT/US00/11989, filed on May 3, 2000.
`
`Provisional application No. 60/133,769,filed on May
`12, 1999, provisional application No. 60/137,583,
`filed on Jun. 4, 1999, provisional application No.
`60/138,209,filed on Jun. 9, 1999, provisional applica-
`tion No. 60/139,338, filed on Jun. 16, 1999, provi-
`sional application No. 60/139,518, filed on Jun. 16,
`1999, provisional application No. 60/139,519, filed on
`
`Jun. 16, 1999, provisional application No. 60/142,371,
`filed on Jul. 6, 1999, provisional application No.
`60/160,510,filed on Oct. 20, 1999, provisional appli-
`cation No. 60/162,182, filed on Oct. 28, 1999, provi-
`sional application No. 60/173,409, filed on Dec. 28,
`1999, provisional application No. 60/237,474, filed on
`Oct. 2, 2000.
`
`Publication Classification
`
`(51)
`
`Int. Cl.
`(2012.01)
`G06Q 30/02
`(52) US. CMe cccccccscssssssssssseseeseeesesesssssstsssnnneeees 705/14.23
`
`(57)
`
`ABSTRACT
`
`A system and method that facilitates e-commerce volume
`pricing is provided. According to one aspect of the present
`invention, the system includes an offers and orders compo-
`nentthat receives and aggregates orders for a product from a
`plurality of buyers. The system also includesa logistics com-
`ponent that determines a shipping price for the product for a
`subset of the plurality of buyers. The shipping price is deter-
`mined at least in part upon the subset of buyers sharing a
`shipping method. According to another aspect of the present
`invention, a method is provided in which buyers within an
`aggregated purchasing group maybe subjectto differentpric-
`ing structures for the same product.
`
`150
`
`165
`PRODUCT CATEGORY Lo
`
` Help Contact/Info Profile Orders Favorites Search Logoff
`170
`155
`a
`175
`SO
`Description of Category
`180
`185
`S/o
`Jo 185
`Sub-Categories
`Sub-Category #1 ta
`Sub-Category #2
`
`160
`160 “WNcategory #1
`160 —N\cateson #2
`Category #3
`.
`
`
`
`SINGLE OFFERS as
`250
`2300 yx 235 ye 240 yp 245
`wr 225
`
`
`Product #1 OfferNo. Ship Date|ORDERShip Terms Price
`
`
`
`
`Product #1 OfferNo. Ship Date[ORDER|Ship Terms Price
`
`
`220
`AGGREGATE OFFERS”
`
`wr250
`ye 225
`yr 230 285 240 r 245
`
`
`Product #2 OfferNo. Ship Date|ORDERShip Terms Price
`
`
`Product #3 OfferNo.
`Ship Terms
`Price
`Ship Date
`ORDER
`Product #3 OfferNo.
`Ship Terms
`Price
`
`we 195 #200
`Agee Singie
`0
`2
`1
`0
`2
`0
`
`wr 240
`
`DETAILS
`
`DETAILS
`DETAILS
`
`
`
`
`
`
`
`PROVI-1010 - Page 1
`
`Ship Date|ORDER|
`
`
`
`160 +
`
`INcategon an
`
`x» 190
`Product Listing
`Product#1
`Product #2
`Product #3
`
` Category Name
`
`PROVI-1010 - Page 1
`
`

`

`Patent Application Publication
`
`Aug. 9, 2012 Sheet 1 of 15
`
`US 2012/0203611 Al
`
`fo
`|rHryPT 45
`
`35
`
`40
`
`Fig.1
`
`50
`
`50
`
`30
`
`
`
`lp
`
`ro)
`
`f
`lo=
`
`PROVI-1010 - Page 2
`
`4045—35
`
`\50
`
`lo
`
`o wv
`
`So
`wv
`
`N
`
`SELLERS
`
`f-
`
`50
`
`50
`
`30
`
`BUYERS
`
`25
`
`30
`
`CENTRAL50SERVER
`
`
`PROVI-1010 - Page 2
`
`

`

`Patent Application Publication
`
`Aug. 9,2012 Sheet 2 of 15
`
`US 2012/0203611 Al
`
`OPEN OFFER PERIOD STARTED
`
`PRICING CURVE IS APPLIED TO OFFER
`
`PLURALITY OF BUYERS PLACE ORDER
`
`OPEN OFFER PERIOD ENDS
`
`FINAL PRICE CALCULATED FROM PRICING
`CURVE
`
`60
`
`62
`
`64
`
`66
`
`68
`
`70
`
`
`DO ANY BUYERS HAVE NTE
`CONTRACT WITH SELLER?
`
`
`
`
`
`
`YES
`
`72
`
`YES
`
`
`IS NTE PRICE LOWER THAN
`CALCULATED FINAL PRICE?
`
`
`
`
`
`74
`
`BUYER(S) RECEIVE NTE PRICE
`
`NO
`
`BUYER(S) RECEIVE FINAL PRICE
`CALCULATED FROM PRICING CURVE
`
`76
`
`YES
`
`80
`78
`
`YES|COUPON APPLIED TO FINAL
`CAN BUYER(S) RECEIVE
`COUPONS?
`PRICE
`
`
`NO
`
`NO ADDITIONAL DISCOUNT
`
`82
`
`GIVEN
`
`Fig 2
`
`PROVI-1010 - Page 3
`
`PROVI-1010 - Page 3
`
`

`

`SELLER OPENS TWO OR MORE
`DEAL ROOMS
`
`CAPACITY IS LINKED BETWEEN THE
`DEAL ROOMS
`
`AT LEAST ONE BUYER PLACES AN
`ORDER IN AT LEAST ONE DEAL
`ROOM
`
`Patent Application Publication
`
`Aug. 9,2012 Sheet 3 of 15
`
`US 2012/0203611 Al
`
`ROOMS
`
`AVAILABLE CAPACITY DECREASES
`BY THE ORDERED AMOUNT IN
`EACH OF THE OPENED DEAL
`
`PROVI-1010 - Page 4
`
`PROVI-1010 - Page 4
`
`

`

`Patent Application Publication
`
`Aug. 9,2012 Sheet 4 of 15
`
`US 2012/0203611 Al
`
`120
`
`ENTER
`REGISTERED
`BUYERS
`
`ENTER
`REGISTERED
`SELLERS
`
`Now!
`
`BUYERS
`REGISTER
`NOW!
`
`SELLERS
`REGISTER
`
`Fig. 4
`
`PROVI-1010 - Page 5
`
`PROVI-1010 - Page 5
`
`

`

`Patent Application Publication
`
`Aug. 9,2012 Sheet 5 of 15
`
`US 2012/0203611 Al
`
`PRODUCT CATEGORY
`
`Help Contact/Info Profile Orders Favorites Search Logoff
`
`170
`
`180
`
`185
`
`Category Name 4 175
`Description of Category”
`Sub-Categories” Ve 1
`
`Sub-Category#1-Sub-CalesoryAt” 85
`
`Sub-Category #2
`
`160 150
`
`ProductListin
`
`g
`Product #1
`
`Product #2
`
`Product #3
`
`Open Offers
`Agg.
`Single
`0
`2
`
`1
`
`0
`
`0
`
`ye 210
`DETAILS
`
`SINGLE OFFERS
`ye 225 2300 gs 2385 og 240g-245 ye 250
`
`
`
`Product #1 OfferNo. Price ShipDate|ORDERShip Terms
`
`Product #1 OfferNo.
`Ship Terms’
`Price
`Ship Date
`ORDER
`220
`
`215
`
`AGGREGATE OFFERS Yo
`225
`ye 230
`Product #2 OfferNo.
`Product#3 OfferNo.
`Product #3 OfferNo.
`
`ye 235 xr 240 l- 245
`Ship Terms
`Price
`Ship Date
`Ship Terms’
`Price
`Ship Date
`Ship Terms
`Price Ship Date
`
`ye250
`
`Fig. 5
`
`PROVI-1010 - Page 6
`
`PROVI-1010 - Page 6
`
`

`

`Patent Application Publication
`
`Aug. 9,2012 Sheet 6 of 15
`
`US 2012/0203611 Al
`
`PRODUCT DETAILS
`
`Help Contact/Info Profile Orders Favorites Search Logoff
`
`160
`160
`160
`
`Product Name
`
`Product Image
`
`160 Va 260
`
`LO 270
`
`PRODUCTDETAILS
`
`275
`
`mN Seller
`
`Manufacturer(if different than Seller)
`o\ Units
`290~product Description
`
`285
`
`295
`
`300
`
`305
`
`View Open Offers
`
`View History
`
`Create RFQ/REO
`
`Fig. 6
`
`PROVI-1010 - Page 7
`
`PROVI-1010 - Page 7
`
`

`

`Patent Application Publication
`
`Aug. 9,2012 Sheet 7 of 15
`
`US 2012/0203611 Al
`
`310
`
`DEAL ROOM
`
`Help Contact/Info Profile Orders Favorites Search Logoff
`
`315
`
`Product Name
`View Product Details °7°
`
`J 350
`
`160
`160
`
`160 Category#1325
`Category #2| OFFER DETAILS A
`PRICING x 330
`
`Category#3]Offer Number $50
`.
`Seller
`Ship Date
`Ship Terms
`Available Quantity
`Quantity Sold
`Quantity on Hold
`Minimum Order Quantity
`Ship Increments
`Additional Information
`Open Date
`Close Date
`
`ORDER
`
`160
`
`.
`.
`
`345
`
`4
`QPTIONS
`Ize
`rice
`22mm
`$0.00
`28 mm
`$1.50
`
`Price
`$0.00
`$0.50
`$0.75
`
`Color
`White
`Red
`Green
`Blue
`$0.75
`
`355
`
`Watch This Offer
`
`Contact Seller
`
`Quantity
`(pieces)
`100-499
`500-999
`1000+
`
`(per thousand)
`$50
`$40
`$20
`
`Current Price-~
`
`340
`
`360
`
`350
`
`PROVI-1010 - Page 8
`
`PROVI-1010 - Page 8
`
`

`

`Patent Application Publication
`
`Aug. 9,2012 Sheet 8 of 15
`
`US 2012/0203611 Al
`
`380
`
`Help Contact/Info Profile Orders Favorites Search Logoff
`
`160
`160
`160
`
`160
`
`$0.75
`
`Product Name 4
`
`315
`
`ORDER INFORMATION
`
`PO Number
`Order Quantity
`Coupon/Discount
`Total Price
`
`OFFERDETAILS A
`
`325
`
`Offer Number
`Seller
`Ship Date
`Ship Terms
`Available Quantity
`Quantity Sold
`Quantity on Hold
`Minimum Order Quantity
`Ship Increments
`Additional Information
`
`OPTIONS Yo
`
`345
`
`Size
`22 mm
`28 mm
`
`Color
`White
`Red
`Green
`Blue
`
`Price
`$0.00
`$1.50
`
`Price
`$0.00
`$0.50
`$0.75
`
`Select One
`
`Select One
`
`PROVI-1010 - Page 9
`
`PROVI-1010 - Page 9
`
`

`

`Patent Application Publication
`
`Aug. 9,2012 Sheet 9 of 15
`
`US 2012/0203611 Al
`
`380
`
`x 395
`
`BILLING INFORMATION
`
`SHIPPING INFORMATION
`
`Name
`Company
`Address 1
`Address 2
`City
`State
`Zip Code
`Country
`Phone
`Fax
`Email
`
`Name
`Company
`Address1
`Address 2
`City
`State
`Zip Code
`Country
`Phone
`Fax
`Email
`
`415
`
`GIFT CERT./MERCH. CREDIT Cc
`
`405
`
`ADDITIONAL INSTRUCTIONS
`
`SHIPPING INSTRUCTIONS
`
`Fig. 9
`
`PROVI-1010 - Page 10
`
`PROVI-1010 - Page 10
`
`

`

`Patent Application Publication
`
`Aug. 9, 2012 Sheet 10 of 15
`
`US 2012/0203611 Al
`
`420a
`
`BUYER REGISTRATION
`
`PREFERRED PASSWORD (VERIFICATION):
`
`BUYER NAME:
`
`ADDRESS:
`
`PRIMARY CONTACT:
`
`TELEPHONE:
`
`FAX:
`
`E-MAIL:
`
`DESCRIPTION OF COMPANY:
`
`PREFERRED USER NAME:
`
`PREFERRED PASSWORD:
`
`Fig. 10
`
`PROVI-1010 - Page 11
`
`PROVI-1010 - Page 11
`
`

`

`Patent Application Publication
`
`Aug. 9,2012 Sheet 11 of 15
`
`US 2012/0203611 Al
`
`Lp“big
`
`Jajjas
`uolnoeuel]paiosuods
`
`
`
`
`(S)WSLSASNOLLYDSYDOV/ONIHOLVN
`
`Y3aT1As
`
`PROVI-1010 - Page 12
`
`PROVI-1010 - Page 12
`
`

`

`Patent Application Publication
`
`Aug. 9, 2012 Sheet 12 of 15
`
`US 2012/0203611 Al
`
`cL‘Bi4
`
`NOILVDSYDOV/ONIHOLVIN uoloeues|
`
`paiosuodsseAng
`
`(S)WALSAS
`
`
`
`ey34711gs'437114S
`
`PROVI-1010 - Page 13
`
`PROVI-1010 - Page 13
`
`

`

`Patent Application Publication
`
`Aug. 9, 2012 Sheet 13 of 15
`
`US 2012/0203611 Al
`
`€,‘big
`
`
`
`uoljoeues|paiosuods(s)1a]]9S/(s)4aAng
`NY3714S“Y3aTIAS‘4471458
`
`
`
`
`
`(S)WSLSASNOILVDSYDOV/ONIHOLVN
`
`
`
`PROVI-1010 - Page 14
`
`PROVI-1010 - Page 14
`
`

`

`Patent Application Publication
`
`Aug. 9, 2012 Sheet 14 of 15
`
`US 2012/0203611 Al
`
`450
`
`HOMEPAGE
`
`Help Contact/Info Profile Orders Favorites Search Logoff
`
`History
`
`160
`
`160
`
`OPEN OFFERS-
`PARTICIPATING
`
`MARKET NEWS/
`INFORMATION
`
`OPEN OFFERS-
`WATCHING
`
`SELLER/BUYER
`INFORMATION
`
`PRODUCT/PRODUCT
`CATEGORIES
`INFORMATION
`
`search [SY
`
`480
`
`485
`
`—_
`AccountInformation
`
`490
`
`fo
`
`Fig. 14
`
`PROVI-1010 - Page 15
`
`PROVI-1010 - Page 15
`
`

`

`Patent Application Publication
`
`Aug. 9,2012 Sheet 15 of 15
`
`US 2012/0203611 Al
`
` FLOPPY
`DRIVE
` INTERFACE
`ADAPTOR SERIAL
`
`ADAPTOR FIG. 15
`
`DRIVE
`
`DISK
`
`|
`
`690
`
`INTERFACE
`
`VIDEO
`
`PORT
`
`INTERFACE
`
`NETWORK
`
`REMOTE
`COMPUTER(S)
`
`750
`
`PROVI-1010 - Page 16
`
`PROVI-1010 - Page 16
`
`

`

`US 2012/0203611 Al
`
`Aug. 9, 2012
`
`DISCOUNTED PRICING
`
`CROSS REFERENCE TO RELATED
`APPLICATIONS
`
`[0001] This application is a continuation and claims the
`priority benefit of U.S. patent application Ser. No. 13/292,
`971, filed Nov. 9, 2011, and entitled E-COMMERCE VOL-
`UMEPRICING,which is a continuation and claimsthe pri-
`ority benefit of U.S. patent application Ser. No. 09/922,884,
`filed Aug. 6, 2001, and entitled E-COMMERCE VOLUME
`PRICING,which:
`[0002]
`(1) is a continuation-in-part and claimsthe priority
`benefit of U.S. patent application Ser. No. 09/324,391, filed
`Jun. 3, 1999, and entitled E-COMMERCE VOLUMEPRIC-
`ING, which claimspriority to U.S. provisional application
`No. 60/133,769, filed May 12, 1999, and entitled E-COM-
`MERCE VOLUMEPRICING;
`[0003]
`(2) is a continuation-in-part and claimsthe priority
`benefit of U.S. patent application Ser. No. 09/426,063, filed
`Oct. 22, 1999, and entitled MULTIPLE CRITERIA BUY-
`ING AND SELLING MODEL,now U.S. Pat. No. 7,818,212;
`[0004]
`(3) is a continuation-in-part and claimsthe priority
`benefit of P.C.T. patent application number PCT/USO00/
`11989, filed May 3, 2000, and entitled MULTIPLE CRITE-
`RIA BUYING AND SELLING MODEL, AND SYSTEM
`FOR MANAGING OPEN OFFER SHEETS, which claims
`priority to: U.S. provisional application No. 60/137,583, filed
`Jun. 4, 1999, and entitled E-COMMERCE AUTOMATED
`SELLER SELECTION SYSTEM;USS. provisional applica-
`tion No. 60/138,209, filed Jun. 9, 1999, and entitled SECU-
`RITIZATION OF ACCOUNTS RECEIVABLE; U.S. provi-
`sional application No. 60/139,338, filed Jun. 16, 1999, and
`entitled REAL-TIME OPTIMIZED BUYING BLOCK;USS.
`provisional application No. 60/139,518, filed Jun. 16, 1999,
`and entitled REAL-TIME MARKET PURCHASING;USS.
`provisional application No. 60/139,519, filed Jun. 16, 1999,
`and entitled E-COMMERCE PURCHASING CARD; USS.
`patent application Ser. No. 09/342,345, filed Jun. 29, 1999,
`and entitled CREDIT BASED TRANSACTION SYSTEM
`
`AND METHODOLOGY;U.S. provisional application No.
`60/142,371, filed Jul. 6, 1999, and entitled TIME VALUE OF
`MONEY BASED CREDIT CARD FOR MERCHANT; USS.
`provisional application No. 60/160,510, filed Oct. 20, 1999,
`and entitled MULTIPLE CRITERIA BUYING AND SELL-
`ING MODEL, AND SYSTEM FOR MANAGING OPEN
`OFFER SHEETS; U.S. patent application Ser. No. 09/426,
`063, filed Oct. 22, 1999, and entitled MULTIPLE CRITERIA
`BUYING AND SELLING MODEL, now U.S. Pat. No.
`7,818,212; U.S. provisional application No. 60/162,182, filed
`Oct. 28, 1999, and entitled MULTIPLE CRITERIA BUY-
`ING AND SELLING MODEL, AND SYSTEM FOR MAN-
`AGING OPEN OFFER SHEETS; and U.S. provisional appli-
`cation No. 60/173,409, filed Dec. 28, 1999, and entitled
`MULTIPLE CRITERIA BUYING AND SELLING
`MODEL, AND SYSTEM FOR MANAGING OPEN OFFER
`SHEETS; and
`[0005]
`(4) claims priority to U.S. provisional application
`No. 60/237,474, filed Oct. 2, 2000, and entitled MULTIPLE
`CRITERIA BUYING AND SELLING MODEL, AND SYS-
`TEM FOR MANAGINGOPEN OFFER SHEETS.
`
`[0006] The entireties of all prior-filed applications listed
`herein are hereby incorporated by reference.
`TECHNICAL FIELD
`
`invention relates to a system and
`[0007] The present
`methodthat facilitates e-commerce volumepricing.
`BACKGROUND OF THE INVENTION
`
`[0008] The buying andselling of goods andservices (col-
`lectively referred to as “products”) has resulted in a vast array
`of costing schemes whichare usedto select the price at which
`such products are sold.
`[0009] One of the most common costing schemes which
`consumers encounter everyday is known asfixed pricing.
`Accordingto this costing scheme,sellersset a fixed price for
`their products based on a past demandfor the product and/or
`anticipated future demand. Buyers desiring to purchase prod-
`ucts from the seller are each required to pay the same fixed
`price regardless of the number of products purchased. If a
`seller finds that the demandfor a given productis greater or
`less than expected,theseller can later adjustthefixed price of
`the product to account for such findings. Although the fixed
`pricing provides a simple wayfor a seller to conduct business
`with multiple buyers, one drawbackofthis costing schemeis
`that it fails to reward buyers willing to purchase greater quan-
`tities of products.
`[0010] Another common costing schemefor pricing a prod-
`uct is an auction.In an auction,a seller sets an initial price for
`an item and then multiple buyers are given an opportunity to
`bid against each other for the product. The buyer having
`placed the highest bid for the productat the end ofthe auction
`purchasesthe productat thefinal price bid. Although auctions
`provide advantages when selling unique products for which
`customersare willing to competitively bid, the auction forum
`is not well suitedforsellers desiring to sell large quantities of
`goods to multiple buyers given the inherent inefficiencies
`involved with selling one product at a time in a bidding
`environment.
`[0011] Yet another costing scheme, which has been
`advancedin recentyears, is buyer-driven bidding. According
`to this costing scheme, a single buyer desiring to obtain a
`product communicatesa price at which the buyeris willing to
`purchasethe product to multiple sellers. Each ofthesellers is
`provided an opportunity to review the buyer’s price. A sale is
`complete when oneofthe sellers agrees to sell the product to
`the buyer at the price suggested by the buyer. While the
`buyer-driven bidding schemeprovides advantagesfor certain
`types of transactions when, for example, sellers may be will-
`ing to sell products at lower than normalprices, the uncer-
`tainties involved with whether a buyer’s offer will be accepted
`is often problematic for high volume commercialtransactions
`in whichthereliability that a transaction will be complete is of
`paramount importance.
`[0012] While the costing schemes described above have
`various advantages and disadvantages in different situations,
`a commonality amongall of the costing schemesis that each
`buyer operates independently with one or moresellersto set
`a purchase price of a product in low volumetransactions.
`Accordingly, there is a strong need in the art for a volume
`costing scheme which overcomesthe above-mentioned draw-
`backs andothers.
`
`SUMMARY OF THE INVENTION
`
`[0013] The following presents a simplified summary of the
`invention in order to provide a basic understanding of some
`PROVI-1010 - Page 17
`
`PROVI-1010 - Page 17
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`

`US 2012/0203611 Al
`
`Aug. 9, 2012
`
`price. Otherwise, the orders are filled at the third price for the
`aspects of the invention. This summary is not an extensive
`first set of buyers andat the fourth price for the secondset of
`overview ofthe invention.It is intended to neither identify key
`buyers.
`or critical elements ofthe invention nordelineate the scope of
`In accordance with yet anotheraspectof the present
`[0019]
`the invention. Its sole purposeis to present some concepts of
`invention a volumepricing system is provided which includes
`the invention in a simplified form as a prelude to the more
`a server configured to receive orders for a product from a
`detailed description that is presentedlater.
`plurality of different buyers via at least one remote computer
`[0014] According to one aspect of the present invention, a
`system. The server includesa processor, a memory coupled to
`system and methodthat facilitates e-commerce volumepric-
`the processor, and a network interface coupled to the proces-
`ing is provided. The e-commerce volumepricing system and
`sor for transmitting and receiving data with the at least one
`methodologyis structured to provide incentive for buyers to
`remote computer system. The memory is utilized to store a
`work together when purchasing products. By working
`first price schedule and a secondprice schedule,thefirst price
`together, buyers are able to take advantage of lower pricing
`schedule operable to determinea first price for the product for
`due to quantity discounts. To facilitate buying and selling
`at least one of the plurality ofdifferent buyers and the second
`products using the e-commerce volumepricing system and
`price schedule operable to determine a secondprice for the
`methodology, an electronic forum is provided whereby buy-
`productfor the other plurality of different buyers.
`ers andsellers are able to conveniently exchange information
`[0020]
`In accordance with another aspect of the present
`and order products.
`invention, a method of costing is provided. The method
`[0015] Thus, according to one aspect of the present inven-
`includes electronically offering a product for sale in accor-
`tion, system for facilitating volumepricing is provided. The
`dance with a price schedule, the price schedule setting a price
`system includes an offers and orders componentthat receives
`for the product which varies in accordance with a quantity of
`and aggregates ordersfor a product fromaplurality ofbuyers.
`the product ordered and receiving ordersfor the product from
`The system also includes a logistics component that deter-
`a plurality of different buyers. The total quantity of products
`mines a shipping price for the product for a subset of the
`ordered from the plurality of different buyers is calculated. A
`plurality of buyers. The shipping price is determinedat least
`shipping price is then determined from at least one of the
`in part upon the subset of buyers sharing a shipping method.
`plurality ofdifferent buyers sharing a shipping method with at
`[0016]
`In accordance with yet another aspectof the present
`least anotherof the plurality of different buyers. A final price
`invention, a method of costing is provided. The method
`for the product is determined from the price schedule based
`includeselectronically offering a productfor sale, receiving a
`on the total quantity of products ordered and the determined
`first order for the product fromafirst set of buyers at a first
`shipping price and the orders are filled for the plurality of
`price, and receiving a second order for the product from a
`different buyers at the final price.
`second set of buyers at a second price. A total quantity of
`[0021]
`In accordance with another aspect of the present
`products ordered from thefirst set of buyers and the second
`invention, a data packet is provided. The data packet is
`set of buyers is calculated andthefirst orderis filled at a third
`adapted to be transmitted between two or more computer
`price and the secondorderisfilled at a fourth price, the third
`processes and includes, one or morefirst fields adapted to
`and fourth prices being based uponthe total quantity ofprod-
`ucts ordered.
`store at least one pricing structure for a product, one or more
`secondfields adapted to store orders from a plurality of buy-
`In accordance with another aspect of the present
`[0017]
`ers for the product, and one or morethird fields adapted to
`invention, a method of costing is provided. The method
`store a final price for the product based uponthe total quantity
`includeselectronically offering a product for sale by a seller
`of products ordered from the plurality of buyers or a Not To
`and receiving orders for the product from a plurality of buy-
`Exceed (NTE) contract price between the seller and at least
`ers. A final price is determinedfor the product based upon the
`one ofthe plurality of buyers.
`total quantity ofproducts ordered from the plurality ofbuyers
`[0022]
`To the accomplishmentof the foregoing andrelated
`and the final price is then compared to a contract price
`ends, the invention then, comprises the features hereinafter
`between the seller and at least one of the plurality of buyers.
`fully described and particularly pointed out in the claims. The
`If the final price is less than the contract price, the orders are
`following description and the annexed drawingsset forth in
`filled for all of the plurality of buyers at the final price.
`detail certain illustrative aspects of the invention. These
`However,if the final price is greater than the contractprice,
`aspects are indicative, however, of but a few of the various
`the orders for the at least one ofthe plurality ofbuyersis filled
`ways in which the principles of the invention may be
`at the contract price and the ordersfor the other of the plural-
`employedandthe present invention is intended to include all
`ity of buyersisfilled at the final price.
`such aspects and their equivalents. Other objects, advantages
`[0018]
`In accordance with yet another aspectof the present
`and novel features ofthe invention will becomeapparent from
`invention, a method of costing is provided. The method
`the following detailed description of the invention when con-
`includeselectronically offering a productfor sale, receiving a
`sidered in conjunction with the drawings.
`first order for the product fromafirst set of buyers at a first
`BRIEF DESCRIPTION OF THE DRAWINGS
`price, and receiving a second order for the product from a
`secondset ofbuyers at a secondprice. Third and fourth prices
`are determinedforthe first set of buyer and the secondset of
`buyers, respectively, based uponthe total quantity ofproducts
`ordered.It is then determined whetherthe third price is less
`than a contract price betweena seller and at least one of the
`first set ofbuyers. Ifthe third price is not less than the contract
`price, the orders are filled for at least one ofthe first set of
`buyersat the contract price, the otherofthefirst set of buyers
`at the third price, and the secondset of buyers at the fourth
`
`FIG. 1 illustrates a diagrammatic view of a system
`[0023]
`for electronically conducting business in accordance with one
`aspect of the present invention;
`[0024]
`FIG. 2 illustrates a flow diagram for facilitating
`e-commerce volumepricing in accordance with one aspect of
`the present invention;
`[0025]
`FIG. 3 illustrates a flow diagram for linking deal
`roomsin accordance with one aspect ofthe present invention;
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`FIG.4 illustrates a web page providing options to
`[0026]
`buyers andsellers desiring to conduct business electronically
`in accordance with one aspect of the present invention;
`[0027]
`FIG. 5 illustrates a web page providing options to
`buyers desiring to conduct business electronically in accor-
`dance with one aspect of the present invention;
`[0028]
`FIG.6 illustrates a web page in which details for a
`product are displayed in accordance with one aspect of the
`present invention;
`[0029]
`FIG.7 illustrates a deal room in which buyers may
`place electronic orders for products posted by sellers in accor-
`dance with one aspect of the present invention;
`[0030]
`FIG. 8 illustrates a web page for a buyerto place an
`order for a product in accordance with one aspect of the
`present invention;
`[0031]
`FIG.9 illustrates a continuation of the web page in
`FIG.6 in accordance with one aspectofthe present invention;
`[0032]
`FIG. 10 illustrates an on-line registration form for a
`buyerin accordance with one aspectof the present invention;
`[0033]
`FIG. 11 illustrates a seller sponsored transaction in
`accordance with one aspect of the present invention;
`[0034]
`FIG. 12 illustrates a buyer sponsoredtransaction in
`accordance with one aspect of the present invention;
`[0035]
`FIG. 13 illustrates a multiple buyer and multiple
`seller sponsored transaction in accordance with one aspect of
`the present invention;
`[0036]
`FIG. 14 illustrates a web page in which buyers and
`sellers may customize in accordance with one aspect of the
`present invention; and
`[0037]
`FIG. 15 illustrates a block diagram of a central
`server in accordancewith one aspectofthe present invention.
`
`DETAILED DESCRIPTION
`
`[0038] The present invention is now described with refer-
`ence to the drawings, wherein like reference numerals are
`used to refer to like elements throughout. In the following
`description, for purposes of explanation, numerousspecific
`details are set forth in order to provide a thorough understand-
`ing ofthe present invention. It may be evident, however, that
`the present invention may be practiced without these specific
`details. In other instances, well-knownstructures and devices
`are shown in block form in orderto facilitate describing the
`present invention.
`[0039] Referring initially to FIG. 1, a system 10 is shown in
`which multiple buyers 15 and sellers 20 are electronically
`linked via a central server 25. As discussed in more detail
`
`below, the central server 25 is configured to provide the
`buyers 15 and sellers 20 with a convenient forum in which to
`buy and sell goods in accordance with a volumepricing
`methodology described herein. The forum can, for example,
`be an established Internet web page wheresellers 20 are able
`to post product information and the buyers 15 are able to order
`the products.
`[0040] Each of the buyers 15 and sellers 20 can access the
`central server 25 in any of a variety of ways. For example,
`each buyer 15 and seller 20 is shownto be part of separate
`establishments 30 which include oneor more respective com-
`puter systems 35 andlocal servers 40. The computer systems
`35 can, for example, be a desktop or laptop computer with a
`local area network (LAN)interface for communicating over a
`network backbone 45to the local server 40. The local servers
`40, in turn, interface with the central server 25 via a network
`cable 50 or the like. It will be appreciated that while the
`computer system 35 is depicted as communicating with the
`
`central server 25 via hardwired network connections, alter-
`natively, the computer system 35 can interface with the cen-
`tral server 25 using a modem,wireless local area and/or wide
`area networks, etc. Further, it will be appreciated, that while
`the buyers 15 and sellers 20 are shown to communicate with
`the central server 25 via different computer systems35,it will
`be appreciated that the buyers 15 and/orsellers 20 can access
`the central server 25 from the same computer system 25.
`[0041] As used in this application, the terms “component”
`and “module” are intended to refer to a computer-related
`entity, etther hardware, a combination of hardware andsoft-
`ware, software, or software in execution. For example, a
`component and/or module may be, but is not limited to, a
`process running on a processor, a processor, an object, an
`executable, a thread of execution, a program, and a computer.
`By wayofillustration, both an application running on a server
`and the server can be a componentand/or module.
`[0042] The underlying architecture of the software system
`used to provide buyers andsellers with a forum for conduct-
`ing business is created as a collection of components. Com-
`ponent-basedarchitecture allows separate sections of code to
`stand alone from one another,
`thus allowing for easier
`replacement, debugging, removal, updating, etc. Compo-
`nents also allow multiple users to work independently on
`separate components without interference from other com-
`ponents. For example, a component could be reprogrammed
`to enhanceits speed without necessitating the recoding ofhalf
`ofthe system as might be required in a non-componentbased
`system. Furthermore, custom components can be developed
`for specific customers based upon the requirements of the
`customers. Such components can be further customized to
`interact directly with the customers’ systems. The compo-
`nent-based system also hasthe ability to recognize when two
`or more users are simultaneously making changes to a com-
`ponent or module. Thus, the system can accommodatefor the
`simultaneous changes to mitigate any problems that might
`occur. For example, a locking or change comparison process
`can preventa first user from writing over new data, entered by
`a second user, with old data.
`[0043] The kernel componentis the central component in
`the operating system. Typically, the kernel is responsible for
`memory management, process and task management, and
`disk management. In the present invention, the kernel com-
`ponentis divided into twelve functional modules. However, it
`is to be appreciated that the number of modulesis not essen-
`tial to the invention. Thus, a kernel containing moreorless
`than twelve modules, which performs the functions as
`described herein, is contemplated as falling within the scope
`of the present invention.
`[0044] The first module is an offers and orders module,
`which manages the offers and orders for products, such as
`posting, processing, storing, etc. The second module is a
`catalog module, which managesseller catalogs, product cat-
`egories, and products. The third module is a users and groups
`module. This module allowsfor the storage, creation, editing,
`and deletion ofusers and groups and will generally be used by
`the deal rooms. The fourth module, an access control module,
`is responsible for enabling users and groups to see what they
`have been authorized to see and similarly, perform the tasks
`that they have been authorized to perform.
`[0045] The fifth module is a messaging module, which
`allows various module functions to be invoked by the user
`interface and/or remote integrated systems. The messaging
`functionality may also be embeddedinto other modules. The
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`through a non-aggregation aware system. Generally, the net
`volume of product ordered by the plurality of buyers deter-
`minesthe final price of the product. A seller can provide a
`pricing structure/price curve or an equation to detail how the
`price of the product changes with the volumeordered. Addi-
`tionally, or alternatively, the price of the product can change
`with respect to the time remaining on an open offer. For
`example, the seller can discount the product by 25% during
`the last five days ofthe offer or the price can be programmed
`to regularly drop by a percentage throughoutthe time period
`ofthe offer until a hidden price pointis reached. Otherfactors
`which can affect the product pricing strategy include: market
`conditions, time remaining before shipment, the numberof
`current orders on an offer, the quantity of productstill avail-
`able, and the numberof buyers currently participating in the
`offer.
`
`sixth module is a terms and conditions module, which man-
`ages agreements between parties involved in each transac-
`tion, such as the terms and conditions agreed to between
`buyerandseller, buyer and system administrator, seller and
`system administrator, etc. The seventh module is a blanket
`pricing module. This module manages agreements between
`buyers andsellers as 5 to product prices. The eighth module,
`a productrelationships module, allowssellers to create rela-
`tionships between related products. The ninth module is a
`logistics module, which allows for the management of the
`product shipment. A RFQ/RFO/RFP module manages quote,
`offer, and product requests. The eleventh module is an invoic-
`ing module, which manages administrative functions, such as
`record keeping,
`invoicing, credit checks, etc. Finally, an
`agents module is used to automate routine tasks and/or to
`provide decision support and guidelines.
`[0046] Modules allow for greater flexibility and customi-
`zation since they can be enabled or disabled for the entire
`system on a user-by-user, group-by-group, access point-by-
`access point basis. The purpose of allowing the e