Automated Vehicle Pricing System with Dynamic Formula Selection
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Vehicle dealerships face a time-consuming process in determining and updating vehicle prices by manually comparing them to other dealerships, which is inefficient and labor-intensive.
Innovation Solution
A pricing system that identifies a competitive set of vehicles based on user input and parameters, using a network of devices and servers to automate the pricing process, allowing for dynamic pricing adjustments and profit protection mechanisms.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If manual price comparison is used, then pricing accuracy can be maintained through human judgment, but the process becomes time-consuming and labor-intensive
Solution Approach 1:
The patent replaces the manual mechanical process of price comparison with an automated computer-based system. The processor automatically retrieves pricing data from multiple dealerships, performs comparisons, and generates recommended prices, eliminating the need for manual human judgment while maintaining pricing accuracy through systematic data analysis.
Solution Approach 2:
The system enables self-service pricing by allowing dealerships to automatically update their own vehicle prices based on competitive market data. The automated pricing tool retrieves current pricing information from other dealerships and generates price recommendations without requiring manual intervention, making the pricing process self-sufficient and efficient.
2Ease of operation
If manual price updates are performed, then control over pricing decisions is maintained, but productivity and efficiency are reduced
Solution Approach 1:
The system incorporates feedback mechanisms where the automated pricing tool continuously monitors competitive pricing data and adjusts recommended prices based on market conditions. The dealer receives these data-driven recommendations and can accept or modify them, combining automated efficiency with human oversight and control over final pricing decisions.
Solution Approach 2:
The system performs preliminary price analysis and generates recommended pricing decisions automatically before the dealer makes final decisions. This preliminary automated work handles the time-consuming data retrieval and comparison tasks, allowing the dealer to focus on reviewing and approving prices, thereby improving overall productivity while maintaining control.
3Adaptability or versatility
If frequent price monitoring is implemented, then market competitiveness is improved, but resource consumption increases
Solution Approach 1:
The system implements periodic price monitoring at scheduled intervals rather than continuous monitoring. The automated pricing tool retrieves competitive pricing data at predetermined frequencies, updating vehicle prices periodically based on market changes. This approach maintains market responsiveness and adaptability while reducing resource consumption compared to continuous monitoring.
Data Source
AI summary
A method includes identifying, for a specified vehicle, a competitive set of other vehicles based on input from a user. The method also includes receiving from the user one or more parameters to be used in pricing the specified vehicle. The method further includes identifying a recommended price for the specified vehicle using the competitive set and the one or more parameters. The one or more parameters could include a selection or definition of multiple pricing formulas to be used to identify the recommended price. Different pricing formulas can be associated with different lengths of time that the specified vehicle is available. A first of the pricing formulas can be used to identify a first recommended price for the specified vehicle and, after a specified amount of time has elapsed, a second of the pricing formulas can be used to identify a lower second recommended price for the specified vehicle.