Abstract:
A system and method ( 10 ) for online bidding wherein a seller ( 16 ) creates sale terms including a start or maximum sale price ( 22 ) and an end or minimum sale price ( 24 ) and a length of time ( 20 ) for each particular item or service ( 30 ) they want to sell. The sale of each item or service ( 30 ) items begins at the start price ( 22 ) and drops steadily throughout the length of time of the auction ( 20 ) until the item or service reaches the end price ( 24 ). A purchaser or bidder ( 12 ) has full access to the sale terms provided by the seller ( 16 ) including the start price ( 22 ), the end price ( 24 ), and the time length of the sale ( 20 ). A bidder ( 12 ) can bid based on either price or time.

Description:
CROSS-REFERENCE TO RELATED APPLICATIONS 
       [0001]    This application claims priority from U.S. Provisional Application Ser. No. 61/551,630 titled “ON-LINE BIDDING SYSTEM &amp; METHOD” which was filed on Oct. 26, 2011, which is incorporated fully herein by reference. 
     
    
     TECHNICAL FIELD 
       [0002]    The present invention relates to online bidding and more particularly, relates to an on-line internet based system and method that incorporates bid price and/or time lapse into the final sale price determination. 
       BACKGROUND INFORMATION 
       [0003]    Online (internet based) bidding for the purchase of various products or services has become increasingly popular through various websites that enable purchasers to bid for items or services. These prior art online bidding systems allow purchasers to choose a price they are willing to pay and may allow sellers to set a starting price, to set a minimum price or reserve at which they are willing to sell, and to set a time limit for the length of time that the item will be available. The current methods and systems allow for many possible variations in the online bidding process. However, these methods and systems are also lacking in allowing full synchronization of the expectations of both buyers and sellers. 
         [0004]    Therefore, what is needed is an online bidding method and system that enables a seller to set a minimum price, a maximum price, and a time limit for the sale of a particular item or service. The system and method should allow a bidder to know the sellers start price or maximum price, the end price or minimum price and the time limit of the sale. Based on this data, the bidder places their bid by either time or price. Multiple bidders can bid on one item and the winning bidder will be the first to bid at the time their bid occurs on the time line created by the seller&#39;s price and time input. 
       SUMMARY 
       [0005]    The present invention features a novel system and method for bidding for the purchase of an item(s) or service(s). The seller creates sale terms including a start price and/or maximum sale price, and an end price and/or a minimum sale price and a length of time the bidding process will be open for each particular item or service they want to sell. The start price should be greater than or equal to the end price. The sale of each item or service begins at the start price and drops steadily throughout the length of time of the auction until the item reaches the end price. A purchaser or bidder has full access to the sale terms provided by the seller, including the start price, the end price, and the time length of the sale. 
         [0006]    Based on the sale terms, the bidder can place a bid that involves less risk and allows for instant purchase, by paying the start price at the beginning of the auction. The bidder can incur maximum risk and wait out the entire auction by bidding the end price and waiting until the conclusion of the auction. The bidder can also bid any price in-between the maximum price and the minimum price. As time elapses, the price will decrease at a predetermined rate from the start price to the end price. The bidder can bid based on a certain price, which causes a bidder to know the exact moment in time when their bid will become effective. Alternatively, the bidder can bid based on a certain time, which causes a bidder to also know the exact price they will pay at a particular time. 
         [0007]    It is important to note that the present invention is not intended to be limited to a system or method which must satisfy one or more of any stated objects or features of the invention. It is also important to note that the present invention is not limited to the preferred, exemplary, or primary embodiment(s) described herein. Modifications and substitutions by one of ordinary skill in the art are considered to be within the scope of the present invention. 
     
    
     
       BRIEF DESCRIPTION OF THE DRAWINGS 
         [0008]    These and other features and advantages of the present invention will be better understood by reading the following detailed description, taken together with the drawings wherein: 
           [0009]      FIG. 1  is a schematic view of the bidding system according to one embodiment of the present invention; 
           [0010]      FIG. 2  is a graphical depiction of the bidding model according to one embodiment of the present invention; and 
           [0011]      FIG. 3  is a flow chart of the bidding method according to one embodiment of the present invention. 
       
    
    
     DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS 
       [0012]    The present invention features a system and method  10 ,  FIG. 1 , of bidding on item or items or services  30  via the internet and/or other electronic means, using an internet or other wireless connected capable device  14 , such as a personal computer, a laptop, a mobile device, a telephone, tablet or any other device able to connect to the internet, cell phone system or the like. The invention allows one or more bidders  12  who have an internet or other wireless or wired communication capable device  14  to bid to purchase one or more items or services  30  from a seller  16  who also has an internet or other wireless or wired communication capable device  18 . 
         [0013]    The seller  16  has one or more items or services  30  that they wish to sell. The seller  16 , utilizing the system and method of the present invention enters a maximum or start price  24  at which they are willing to sell the item  30  into a computer software program  26  typically running as a web based application on a server, however the use of a web based application on a server is not intended to be a limitation of the present invention. The seller  16  also enters a minimum end price  22  at which they are willing to sell the item  30  into the program  26 . The start price  24  is always equal to or higher than the end price  22 . Preferably, the start price should be higher than the end price. 
         [0014]    The seller  16  then enters an amount of time  20  for which an auction will run for the item or service  30  into the program  26 . The amount of time  20  can be any incremental amount of time, such as a particular number of minutes, hours or days. The amount of time  20  is a fixed amount of time. The fixed amount of time  20  that an item or service  30  is available for sale is variable and may be controlled by entering in a starting time  52 , an ending time  54 , and/or the total amount of time  20  for each auction. The amount of time  20  that an item or service is up for sale or up for auction is generally a fixed amount of time. However it is contemplated and within the scope of the present invention that a seller  16  may be able to extend the length of time that the item or service  30  is available for sale by adjusting or amending the ending time  54 . Extension of the amount of time  20  can occur at any time during the sale or at a time after the conclusion of the sale. Extension of the amount of time  20  may also be combined with a change in the price of the item or service  30 . The program  26  generates a representation of the seller&#39;s parameters (maximum price  24 , minimum price  22  and amount of time  20 ) in the form of a graph or chart  50 ,  FIG. 2 . 
         [0015]    The graph or chart  50  graphically displays the selling price  56  of the item or service  30  starting with the maximum price  22  and declining down to the minimum price  24  along the Y axis; and displays an amount of time  20  of the sale or auction along the X axis, starting from a start time  52  to an end time  54 . A definitive or exact price over time result line  58  is created. The price over time result line  58  shows the exact price that the item or service  30  will cost at any given time during the auction or bidding process. The price over time result line  58  details the steady decline in the price of the item over the time period  20  of the auction. 
         [0016]    Each bidder  12  will preferably have access to view the chart  50  and will be able to determine the price they are willing to pay for the item or service  30  taking into consideration that they can be outbid (that is someone can bid a higher price at an earlier time). For example, if a bidder  12  wants the item or service  30  and is willing to pay the maximum price  22 , the bidder  12  can bid the maximum price  22  at the start time  52  to essentially ensure that they will purchase (or are most likely to purchase) the item or service  30 . If the bidder  12  is only wiling to pay the minimum price  24 , then the bidder  12  can bid the minimum price  24  and the bid will only become effective at or just prior to the end time  54 . The bidder can also bid any amount in-between the maximum price  22  and the minimum price  24 . The bid will become effective at the time determined by the price over time result line  58  that corresponds with the dollar or price amount that the bidder desires to bid. 
         [0017]    The bidder  12  can also bid on a time basis instead of a price basis. In bidding on a time basis, the bidder  12  would bid based on time, and the bid could be for the start time  52 , the end time  54 , or any increment of time in-between the start time  52  and the end time  54 . The time bid would be used in conjunction with the price over time result line  58  in order to determine the monetary bid for the item or service  30  at that predetermined time that the bidder has selected. In this way, a bidder would locate the time that they want to bid on the X axis of the representative graph  50 . They would follow this time up to the price over time result line  58  and then follow horizontally to the Y axis to determine the monetary amount of the bid. 
         [0018]    For example, if a bidder were to bid at the end time  54 , then the bid would be for the minimum or end price  24 . A bidder  12  may also have the ability to change their bid; that is to either to change the time of their bid or the price of their bid, at any point prior to the end of the auction. 
         [0019]    The preferred method of bidding allows for a plurality of potential bidders  12   a ,  12   b , etc. The program  26  collects all bids as they occur. All of the bids  60   a ,  60   b , etc. may appear on the graph  50  and therefore be visible to all other bidders. All bids must fall somewhere on the price over time result line  58 . The winning bid is the one with the highest bid and earliest time slot, i.e. the one that falls on the highest point along the price over time result line  58 . Once the auction starts, bidding proceeds until a winning bid is placed (the corresponding bid price/time occurs) or until the end time  54  occurs. By way of example, in the graph shown in  FIG. 2 , assuming no other bids are placed, the winning bid would be shown as bid  60   a.    
         [0020]    The amount of time  20  of the auction or bidding process can be extended during the auction or following the conclusion of the auction, with or without a change in the price of the item  30 . A winning bid will be either a monetary amount that corresponds to the exact amount of time using the price over time result line  58  or a time bid once that time occurs. In the preferred embodiment, all of the bidders  12  can see all of the bids  60 . 
         [0021]    Each bid  60  features a time stamp  62 . The time stamp  62  is the exact time a particular bidder  12  placed his or her bid  60 . The time stamp  62  is preferably accurate to within 1/100 th  of a second. This accuracy allows each bid to have a unique time stamp and allows each bid to be placed into an order. A first bid  60   a  from a first bidder  12   a  will have a different time stamp that a first bid  60   b  from a second bidder  12   b . The time stamp determines the priority of bids in the case of 2 bidders would have been the same monetary amount or the same time. The highest monetary bid or earliest time bid, whichever is highest along the price over time result line  58  is the winning bid. 
         [0022]    At the close of the auction, the system and method of the present invention will determine if there is a winning bidder; notify the winning bidder of his or her winning bid; arrange for the winning bidder to provide payment in the amount of his or her winning bid; and notify the seller of the identity of the winning bidder so that the seller may arrange to forward the purchased item or service to the winning bidder upon receipt of appropriate payment. Such post-auction processing is well known in the art and intentionally not described in greater detail. 
         [0023]    The item or service  30  can be any type of item or service. For example, the item may be a physical item, such as a car, a bicycle, or any other physical item. The item (service) can also be a service, a coupon, a discount, etc. There can be one singular item for sale or there could be multiples of the items or services for sale. For example, the item for auction or bid may be a discount coupon for a particular restaurant in which case the seller  16  may say there are 25 such coupons available. Preferably, the auction should indicate to the bidders the exact number of items for sale. 
         [0024]    Although the invention is described in a preferred embodiment that features internet or other wireless or wired communication capable device  18 , it is contemplated and within the scope of the present invention that the system and method of the invention could be implemented without the use of the internet, either though such application as the use of hard wired telephone bidding or via live personal bidding or any other similar process. In addition, although the present invention may use the term “item” in the context of a product for sale by a user, this term is not limited to a tangible item that may include tangible items, services, discounts for products or services or the like. 
         [0025]    The present invention features a unique bidding system and method that incorporates the use of both monetary bids and time bids into determinations of which bidder will be the winning bidder. The auction format features a start price for an item or service and an end price for the item or service, and the auction runs for a set amount of time, with the item price declining at a steady rate throughout the auction. Bidders can bid based on a particular price, which becomes affective at a particular time or bidders can bid based on a particular time which translates effectively into a particular price that the item or service will be priced at a predetermined time. 
         [0026]    It is important to note that the present invention is not intended to be limited to a system or method which must satisfy one or more or all of any stated objects or features of the invention. It is also important to note that the present invention is not limited to the preferred, exemplary, or primary embodiment(s) described herein. Modifications and substitutions by one of ordinary skill in the art are considered to be within the scope of the present invention, which is not to be limited except by the allowed claims and their legal equivalents.