System and process for local acquisition of products priced online

Abstract

A system and process for establishing prices for products on line and for allowing acquisition of those products from retailers that honor such prices. The system and process involve a customer having a credit card account, a computer terminal configured to access a network, and a central authority coupled to the computer terminal via the network. The central authority maintains information about a product and a corresponding price. The price is established by the central authority and the central authority is configured to communicate the information about the product and the price to the customer via the network. Also involved is a credit card processor that is coupled to the central authority. The credit card processor is configured to query the information maintained by the central authority and to receive the price from the central authority. A retailer is involved and includes a point-of-sale system coupled to the central authority and to the credit card processor. The retailer is configured to deliver the product to the customer after the customer purchases the product from the retailer via his credit card account or other form of payment at the price established by the central authority and provided to the retailer and the point-of-sale system by the credit card processor.

Description

BACKGROUND OF THE INVENTION [0001] 1. Field of the Invention [0002] The present invention relates to a system and method that enables the establishment of prices for products via a network and the subsequent acquisition of such products from local retailers that honor the established prices. [0003] 2. Description of the Related Art [0004] The retail system as practiced today represents the principal system for the sale and distribution of over one trillion dollars per year in goods and services. It is a process that has developed over the past several decades with well-defined, traditional roles for its various participants: manufacturers, distributors, and retailers. [0005] As the retail process has developed and is currently practiced, a manufacturer has the responsibility for designing, manufacturing (or having made) and selling products to a distributor / retailer. The manufacturer's price, also known as the factory price, is typically set sufficient to recoup costs of manufacturi...

AI Technical Summary

Benefits of technology

The present invention provides a system and process for enabling a manufacturer to control the customer price of goods and services, while maintaining the profitability of the retailer. This is done by separating the pricing of goods from the distribution, sale, and customer support of those goods. The invention utilizes technologies available to all participants in the retail process, such as electronic communications and networking technologies. The invention also allows a customer to examine merchandise information online, receive a list of stores that have the desired product in stock, and pick up the product at a designated local store. The invention provides a new retail paradigm favorable to the manufacturer and the retailer, motivating both parties. The invention also provides an improved method for a customer to lock in a price for a product, regardless of the regular pricing structure. Overall, the invention enables a more effective and efficient retail process for both the manufacturer and retailer.

Problems solved by technology

Product pricing directly affects consumer demand, which in turn affects product movement, profitability, and the subsequent business directions and strategies of the various participants in the process.

Thus, while a manufacturer is constantly striving towards his own goals, for example to sell more products, improve current products, develop new products, or distribute newly developed and manufactured goods, he has been consistently lacking in one of the key tools most effective in obtaining these goals—the customer pricing of his product.

Not only does a manufacturer lack control over retail pricing, but his channel often uses their control over pricing to directly conflicting ends.

Such an artificially high retail price could subsequently result in a glut of highly discounted, left over old product that is in direct competition with the subsequently introduced new product.

Today, of course, such practices have been deemed illegal as anti-competitive.

Regardless, they still did not yield the level of control that manufacturers desired.

In theory, such coupons permit a manufacturer to affect the final net price to the buyer, thereby affecting the sale of selected products.

In practice, however, coupons have been found to be extraordinarily ineffective.

Coupon distribution is, as a practical matter, uncontrollable.

The manufacturer coupon represents, at best, an expensive, unwieldy, and poorly effective method by which the manufacturer can exert minimal control over the retail price.

Rebates suffer from the same problems as coupons; they are expensive, untargeted, and have the further problem of being inconvenient for the consumer to use.

Factory outlets, while of limited success in moving ‘seconds’ (i.e. defective goods) and expiring product lines, create very significant problems which limit their further use.

In their most negative aspect, factory outlets place manufacturers into direct competition with their channels, creating ill will, and often direct conflict their retail partners.

Catalog sales suffer the same problem as manufacturer outlets.

Further, both efforts—factory outlets and catalog sales—require a manufacturer to enter and compete directly in the field of direct-to-customer sales.

More specifically, manufacturers often do not possess retail skills in the traditional areas of distribution, marketing, and direct customer support necessary to compete effectively in direct customer sales.

In addition to the problems described above, catalog sales and related indirect sales suffer from the drawback of making the customer wait for delivery of a product.

Not only does this wait diminish any feelings of instant gratification, but it will almost certainly discourage impulse purchases, and may even discourage the customer from purchasing any goods at all.

However, to the best knowledge of applicants, uses of such enabling technologies are generally limited to enhancing and improving the conventional retail process paradigm.

No uses that are known to applicants permit or enable a manufacturer to significantly, or more directly affect customer price.

However, not only do such coupons suffer many of the drawbacks described above with respect to traditional coupons, but they require printing by the consumer and hence are less convenient for most customers to use.

They are also easily susceptible to fraud and counterfeiting, especially by those possessing the computer systems and expertise necessary to locate and print them.

While yielding the manufacturer direct control of the retail process, such activities subject him to the same drawbacks and problems encountered with outlets and direct catalog sales as discussed above.

However, these business models represent ‘closed’ systems where product and services prices are agreed upon and limited to application within the particular franchise arrangement or company.

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