In-Store Price Negotiation Interface for Dynamic Transactions
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Solution Overview
Problem
In-store transactions are inefficient due to lack of data on individual customer willingness to pay, leading to suboptimal pricing and reduced transaction volume.
Innovation Solution
A system and method that allows customers to make counter offers on item prices using a user interface, with the offer being communicated to the proprietor, who can accept, reject, or counter the offer, optimizing transaction margins.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If proprietors use fixed list prices for items, then pricing simplicity is maintained, but transaction efficiency and revenue optimization deteriorate
Solution Approach 1:
The patent transforms the static fixed pricing system into a dynamic negotiation system where prices can be adjusted in real-time based on customer offers and proprietor responses. The system allows prices to fluctuate within predetermined ranges, enabling transaction efficiency to improve without requiring completely complex pricing mechanisms.
Solution Approach 2:
The system changes the price parameter from a fixed value to a negotiable range with minimum and maximum bounds. This allows the pricing mechanism to adapt to individual customer situations while maintaining structural simplicity through predetermined price floors and ceilings.
2Productivity
If proprietors lower list prices to increase transaction volume, then sales volume increases, but profit margins deteriorate
Solution Approach 1:
The patent applies different pricing strategies to different customers and transactions rather than using a uniform approach. Each negotiation can result in a customized price that optimizes margin for that specific transaction, allowing high-volume sales without systematically reducing profit margins across the board.
Solution Approach 2:
The system dynamically adjusts prices based on real-time negotiation outcomes rather than relying on static discounted pricing. This enables the proprietor to capture maximum value from each customer while maintaining overall transaction volume.
3Loss of information
If proprietors use fixed list prices, then pricing simplicity is maintained, but the ability to capture individual customer willingness to pay deteriorates
Solution Approach 1:
The negotiation system provides real-time feedback between customer offers and proprietor responses, allowing the system to learn and adapt to individual customer willingness to pay. This feedback loop captures pricing information that would be lost in fixed pricing while maintaining ease of operation through automated processes.
Solution Approach 2:
The system enables customers to actively participate in determining the price through the negotiation process, effectively serving themselves in revealing their true willingness to pay. This self-service approach captures pricing information without requiring complex proprietary data collection methods.
Data Source
AI summary
A method comprising using at least one hardware processor to: receive a scan a code associated with an item; display on a user interface information related to the product, the list price of the product, and a mechanism to allow a user to make a counter offer; receive an offer via the mechanism that is less than the list price, but greater than a minimum negotiation price; display the offer via the user interface; communicate the offer to a proprietor; display via the user interface whether the offer was accepted, reject or countered.