B2B Platform Segmentation for Pricing Discretion
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Solution Overview
Problem
Small and medium enterprises (SMEs) face challenges in maintaining profit margins and competitive advantages due to the openness of internet-based B2B platforms, which forces them to disclose pricing information, leading to unwanted competition, and struggle to access capital through traditional means.
Innovation Solution
An internet accessible computer system that registers seller and buyer companies, issues convertible preference shares to sellers based on projected earnings, and manages payments and book entries to retain operating profits, allowing SMEs to maintain pricing discretion and access capital markets.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If SMEs use open internet-based B2B platforms to market their products, then they can reach more customers and increase sales opportunities, but they are forced to disclose pricing information which leads to unwanted competition and loss of profit margins
Solution Approach 1:
The patent segments the B2B platform into two distinct types: open platforms for marketing and lead generation, and closed platforms for actual transaction execution. This segmentation allows SMEs to maintain pricing discretion while still benefiting from internet-based market access. The system divides the sales process into front-end (open) and back-end (closed) operations, enabling companies to showcase products publicly without exposing sensitive pricing data.
Solution Approach 2:
The patent introduces a closed platform as an intermediary layer between the open market and the actual transaction. This intermediary allows SMEs to receive leads from open platforms while conducting negotiations and finalizing deals in a controlled, private environment. The closed platform acts as a buffer that protects pricing information while still facilitating business transactions.
2Productivity
If SMEs disclose pricing information on open B2B platforms to compete for orders, then they can attract more buyers, but their profit margins are pressed and competitive advantages are lost
Solution Approach 1:
The patent segments the trading process into public marketing phase and private transaction phase. During the public phase, SMEs can attract buyers without disclosing prices. During the private phase on closed platforms, pricing negotiations occur under controlled conditions, protecting profit margins while still enabling order acquisition.
Solution Approach 2:
The patent inverts the traditional approach by not disclosing pricing information publicly. Instead of using price as a public competitive tool, the system allows SMEs to maintain pricing discretion and use other product attributes for public marketing, reversing the conventional open platform model where price transparency is expected.
3Ease of operation
If traditional B2B platforms take an open platform approach allowing SMEs to register and compete, then SMEs can market their products and attract customers, but they face unwanted competition and cannot maintain pricing discretion
Solution Approach 1:
The patent creates two operational modes: open platform for product showcasing and lead generation, closed platform for transaction execution. This allows SMEs to easily market products on open platforms while maintaining pricing discretion through the closed platform mechanism, combining ease of operation with pricing control.
Solution Approach 2:
The patent creates a universal system that supports both open and closed platform operations within a single ecosystem. SMEs can utilize the open platform for marketing while transitioning to closed platforms for transactions, allowing the system to serve multiple functions and adapt to different business needs simultaneously.
Data Source
AI summary
An internet accessible computer system to conduct business to business operations among a plurality of buyer companies and a plurality of seller companies. In one embodiment, the system includes at least one seller client system, at least one buyer client system, at least one computer server coupled to a database for storing data, and a network connecting said at least one seller client system and said at least one buyer client system to said at least one computer server. Said at least one computer server is programmed for, among other things, registering each of the plurality of seller companies with the internet accessible computer system, wherein each of the plurality of seller companies sells goods to a corresponding one of the plurality of buyer companies, and the corresponding one buyer company makes payment for the goods sold by that seller company, and registering each of the plurality of buyer companies with the internet accessible computer system, wherein the registration of each of the plurality of buyer companies depends on the registration of its corresponding seller company.