Patent Publication Number: US-2015066767-A1

Title: Method and apparatus for managing subscriptions

Description:
CROSS-REFERENCE TO RELATED APPLICATIONS 
     This application is a continuation of U.S. patent application Ser. No. 13/646,145 on Oct. 5, 2012, entitled METHOD AND APPARATUS FOR MANAGING SUBSCRIPTIONS, which is a continuation of U.S. patent application Ser. No. 13/400,406 filed Feb. 20, 2012 and issued as U.S. Pat. No. 8,285,591 on Oct. 9, 2012, which is continuation of U.S. patent application Ser. No. 12/611,365 filed Nov. 3, 2009 and issued as U.S. Pat. No. 8,121,899 on Feb. 21, 2012, which is a continuation of U.S. patent application Ser. No. 11/768,594 filed Jun. 26, 2007 and issued as U.S. Pat. No. 7,613,631 on Nov. 3, 2009. 
     U.S. patent application Ser. No. 11/768,594 is a divisional of U.S. patent application Ser. No. 09/538,805 filed Mar. 30, 2000 and issued as U.S. Pat. No. 7,251,617 on Jul. 31, 2007, which claims the benefit of priority of U.S. Provisional Application No. 60/165,366 filed Nov. 12, 1999, entitled SUBSCRIPTION GROCERIES. 
     U.S. patent application Ser. No. 09/538,805 is a continuation-in-part of U.S. patent application Ser. No. 09/221,457 filed Dec. 28, 1998 and issued as U.S. Pat. No. 6,415,262 on Jul. 2, 2002, entitled METHOD AND APPARATUS FOR DETERMINING A SUBSCRIPTION TO A PRODUCT IN A RETAIL ENVIRONMENT. 
     Each of the above-referenced applications are incorporated by reference in their entirety. 
     This application is related to the following U.S. patent applications: 
     U.S. patent application Ser. No. 10/642,894 filed Aug. 18, 2003 and now abandoned entitled METHOD AND APPARATUS FOR IDENTIFYING POTENTIAL BUYERS; 
     U.S. patent application Ser. No. 10/124,809 filed Apr. 17, 2002 and now abandoned entitled METHOD AND APPARATUS FOR FACILITATING PURCHASE AGREEMENTS WITH A RETAILER; 
     U.S. patent application Ser. No. 09/540,709 filed Mar. 31, 2000 and now abandoned entitled SYSTEM TO ESTABLISH A CUSTOMER-SPECIFIED PRICE OF A PRODUCT AND TO MANAGE REDEMPTION OF THE PRODUCT AT THE ESTABLISHED PRICE; 
     U.S. patent application Ser. No. 09/349,860 filed Jul. 8, 1999 and now abandoned entitled METHOD AND APPARATUS FOR IDENTIFYING POTENTIAL BUYERS; 
     U.S. patent application Ser. No. 09/340,953 filed Jun. 28, 1999 and now abandoned entitled SYSTEM AND METHOD FOR ESTABLISHING AND MANAGING SUBSCRIPTION PURCHASE AGREEMENTS INCLUDING COMMITMENTS TO PURCHASE GOODS OVER TIME AT AGREED UPON PRICES; and 
     U.S. patent application Ser. No. 08/889,589 filed Jul. 8, 1997 and issued as U.S. Pat. No. 5,970,470 on Oct. 19, 1999, entitled SYSTEM AND METHOD FOR ESTABLISHING AND MANAGING SUBSCRIPTION PURCHASE AGREEMENTS INCLUDING COMMITMENTS TO PURCHASE GOODS OVER TIME AT AGREED UPON PRICES, the entirety of which is incorporated by reference herein for all purposes. 
    
    
     FIELD OF THE INVENTION 
     The present invention relates to sales methods and apparatus. More particularly, embodiments of the present invention relate to subscription sales techniques. 
     BACKGROUND OF THE INVENTION 
     Retail competition is intense. Single-store merchants compete with chain-stores. Chain-stores compete with bulk purchasing or warehouse clubs. And, more recently, brick-and-mortar retailers compete with Internet retailers. Chain-stores, bulk purchasing clubs, warehouse clubs, and Internet retailers (generally referred to herein as “discounters”) generally attempt to increase their revenues by attracting a greater volume of customers and increasing sales. Competition for customers has had a dramatic impact on traditional retailers. For example, while the grocery industry has enjoyed an increasing market size, the market share of conventional supermarkets and groceries has dwindled below their once-controlling interest. In large part, this drop in market share has been caused by competition from discounters such as bulk purchasing clubs. 
     Retail discounters have identified and are exploiting a lucrative portion of the retail market—customers who are willing to make bulk purchases in exchange for discount prices. Such bulk sales have cut directly into the volume of conventional retailers. 
     With market share steadily eroding, it has become necessary for conventional retailers to attempt to stem the loss of customers to discount retailers. Due to the fundamental differences in their businesses, however, it is difficult for a conventional retailer to compete with a discount retailer. Further, it is becoming increasingly difficult for discount retailers to compete with each other. 
     Discount retailers represent a very specialized portion of the retail market. Discount retailers generally locate their facilities in less expensive areas—often occupying warehouse type facilities—while still attracting customers looking for a good deal. They are able to stock a very limited number of types of products because their customers are willing to sacrifice choice for price. As a result, discount retailers are able to sell larger quantities of product per transaction, thereby realizing lower per-sale costs. 
     Customers generally accept that discount retailers will not offer all of the amenities often provided by conventional retailers. For example, discounters typically do not provide check-cashing services, or bag items at checkout. Further, many discounters operate as “clubs” and enroll customers, as “members” of the club. Customers often are required to pay a membership fee for the right to belong to the “club.” Such fees help offset what are traditionally thin margins. 
     In contrast, conventional retailers typically locate their facilities in areas convenient for their customers, thus often realizing higher real estate costs. They must stock a much larger number of products to attract customers, and they have relatively higher transaction costs due to the typically large quantity of small items per purchase. To compete in their core business, conventional retailers are expected to provide significant customer amenities, without the imposition of any type of service or membership fee. 
     In addition, conventional retailers typically do not have the physical infrastructure necessary to compete in a traditional bulk selling environment. Because they are located in more expensive facilities, they often have less floor and shelf space, with all available space being used by the large number of products they stock. 
     In one attempt to compete with discounters, many retailers have implemented frequent shopper programs. In a typical frequent shopper program, a customer is provided with an identification card that is presented at each visit. Records are typically kept of customer purchases, and various discounts and benefits are typically provided to the customer in return for registration and subsequent use of the card. 
     Frequent shopper programs, however, suffer from relatively limited acceptance by customers. These programs are typically not able to provide prices that are competitive with bulk purchasing programs. Often, discounts are only provided on a few items. Overall, frequent shopper programs do not provide a realistic alternative to customers interested in bulk purchasing. In fact, no systems or methods are known to applicants which permit conventional retailers to compete effectively against discounters. 
     One method which has been proposed by the assignee of the present invention to allow conventional retailers to compete with discounters is to allow customers to purchase subscriptions to products sold at conventional retailers. This is described in U.S. Pat. No. 5,970,470 entitled SYSTEM AND METHOD FOR ESTABLISHING AND MANAGING SUBSCRIPTION PURCHASE AGREEMENTS INCLUDING COMMITMENTS TO PURCHASE GOODS OVER TIME AT AGREED UPON PRICES, issued to the assignee of the present invention on Oct. 19, 1999, and which is incorporated herein by reference for all purposes. 
     It would be further desirable to provide a system which allows a customer to establish a subscription to products which are sold at more than one retailer. Preferably, subscriptions to a number of products offered by a number of retailers may be organized by a single entity, providing a customer with a greater sense of control and ability to select and customize subscriptions to a large number of products. It would also be desirable to provide a system which allows retailers to offer subscriptions to a large pool of customers who would otherwise never have heard of the retailer or who would not have known about the subscriptions offered by the retailer. It would be advantageous to provide a method and apparatus that overcame the drawbacks of the prior art. 
     SUMMARY OF THE INVENTION 
     Embodiments of the present invention provide a system and method for managing subscriptions to products. Embodiments of the present invention alleviate problems inherent in the prior art and promote commerce. 
     According to embodiments of the present invention, a customer may establish a subscription to a product with any of a number of retailers by establishing the subscription through a centralized system. In one embodiment, a subscription is established by first receiving information identifying a customer and a product. At least one retailer that offers the product is then identified, and terms of a subscription for the product are established. The established subscription is identified by a redemption identifier that is communicated to the customer. The customer is then able to redeem subscription products at the retailer by identifying the subscription using the redemption identifier. 
     Embodiments of the present invention further include a system and method for tracking fulfillment of the subscription. Tracking fulfillment may be performed by the centralized system, by the retailer, by the customer, and/or a combination of different parties. 
     Embodiments of the present invention also include a system and method for facilitating monetary settlement between parties. 
     With these and other advantages and features of the invention that will become hereinafter apparent, the nature of the invention may be more clearly understood by reference to the following detailed description of the invention, the appended claims and to the several drawings attached herein. 
    
    
     
       BRIEF DESCRIPTION OF THE DRAWINGS 
         FIG. 1  is a block diagram of a system consistent with the present invention; 
         FIG. 2  is a block diagram of one embodiment of the controller depicted in  FIG. 1 ; 
         FIG. 3  is a table illustrating an exemplary data structure of a product database for use in the present invention; 
         FIG. 4  is a table illustrating an exemplary data structure of a customer database for use in the present invention; 
         FIG. 5  is a table illustrating an exemplary data structure of an available subscription database for use in the present invention; 
         FIG. 6A  and  FIG. 6B  are a table illustrating an exemplary data structure of an active subscription database for use in the present invention; 
         FIG. 7  is a table illustrating an exemplary data structure of a settlement database for use in the present invention; 
         FIG. 8  is a table illustrating an exemplary data structure of a subsidy database for use in the present invention; 
         FIG. 9  is a table illustrating an exemplary data structure of a penalty database for use in the present invention; 
         FIG. 10  is a table illustrating an exemplary data structure of a modification database for use in the present invention; 
         FIG. 11  is a flow diagram illustrating an exemplary subscription process according to an embodiment of the present invention; 
         FIG. 12  is a flow diagram illustrating an exemplary process for establishing a subscription according to an embodiment of the present invention; 
         FIG. 13  is a flow diagram illustrating an exemplary process for the fulfillment of a subscription according to an embodiment of the present invention; and 
         FIG. 14  is a flow diagram illustrating an exemplary process for performing settlement according to an embodiment of the present invention. 
     
    
    
     DETAILED DESCRIPTION OF THE INVENTION 
     Applicants have recognized that a need exists for a system and method that allows customers to establish subscriptions to products that may be redeemed at a number of different retailers. In addition, Applicants have recognized that a need exists for an ability to track the fulfillment and perform settlement functions to manage those subscriptions. Customers, retailers, and product manufacturers all benefit from embodiments of the present invention which allow customers to establish subscriptions to products from a wide variety of retailers. 
     For example, retailers benefit through an ability to reach a larger pool of potential customers and by accessing information about each customer&#39;s buying behavior and information about other subscriptions held by each customer. Retailers will reap further benefits from an ability to better predict product demand. Both traditional retailers and discounters benefit from this ability to offer subscriptions to customers. Manufacturers benefit from an ability to directly offer discounts and other incentives to customers and through an ability to mold customer behavior and establish long-term customer loyalty. Customers benefit through increased cost savings and an ability to customize subscriptions to the customers&#39; particular needs. Embodiments of the present invention also give customers the ability to shop for and negotiate subscriptions which best meet their needs for multiple types of products at a single location across different types of retailers (e.g., hardware stores, clothing stores, supermarkets, etc.). 
     For consistency and simplicity of reference throughout the specification, Applicants will use the following terms throughout the specification. “Retailer” is used to refer to any vendor of items, goods, or services. “Product” is used to refer to any item, good, or service. Other terms will be introduced throughout the specification. Further, a number of price terms will be used. The term “retail price” will be used to refer to a price per unit of a product which is established, e.g., by a manufacturer or retailer. The retail price generally refers to the price a customer would typically pay for the product before any discounts or without use of embodiments of the present invention. The term “subscription price” is generally used herein to refer to the price established, using techniques of the present invention, per unit of a product in a subscription. The subscription price may be preestablished (e.g., established in the available subscription database  500  of  FIG. 5 ) or it may be established through negotiation or otherwise specified by the customer (e.g., established in the active subscription database  600  of  FIG. 6A  and  FIG. 6B ). The term “total subscription price” is used to refer to the sum total of the subscription prices paid during the term of a subscription. Finally, the term “settlement price” is used to refer to the amount which one party (e.g., a manufacturer, retailer, or an entity operating a controller  200  of  FIG. 1 ) agrees to pay to another party (e.g., a manufacturer, retailer, or an entity operating the controller  200  of  FIG. 1 ) in consideration for processing a subscription according to the present invention. These terms will be discussed in further detail below. 
     System 
     Referring now to  FIG. 1 , an apparatus  100  according to an embodiment of the present invention includes a controller  200  that is in communication with one or more customer devices  110 ,  120  and  130 ; and with one or more retailer devices  140 ,  150  and  160 . The controller  200  may communicate with the customer devices  110 ,  120  and  130  and the retailer devices  140 ,  150  and  160  directly or via a network such as the Internet. Each of the customer devices  110 ,  120  and  130 , and the retailer devices  140 ,  150  and  160  may comprise computers, such as those based on the INTEL® Pentium® processor, that are adapted to communicate with the controller  200 . Any or all of the customer devices  110 ,  120  and  130  and the retailer devices  140 ,  150  and  160  may be, e.g., conventional personal computers, kiosks, portable types of computers, such as a laptop computer, a palm-top computer, a hand-held computer, a telephone, a cellular telephone, or a Personal Digital Assistant (PDA). Further, any or all of the retailer devices  140 ,  150 , and  160  may be point of sale terminals or other devices operating at retailer points of sale. Any number of customer devices and retailer devices may be in communication with the controller  200 . 
     The controller  200  may be operated by or on behalf of a service provider or other entity offering the service of providing and managing subscriptions. The controller  200  may also be operated by or on behalf of an entity such as a financial institution, financial authorization network or other entity that receives and processes financial transactions from multiple retailers. Further, the controller  200  may be operated by or on behalf of one or more product manufacturers and/or retailers. The term “controller  200 ” will be used herein to conveniently refer to both the device (e.g., the device depicted in  FIG. 2 ) as well as the operation of the controller  200  by an entity or entities (e.g., a service provider or other party). 
     Communication between the customer devices  110 ,  120  and  130 , and the retailer devices  140 ,  150 , and  160  and the controller  200  may be direct or indirect, such as over the Internet through a Web site maintained by the controller  200  on a remote server or over an on-line data network including commercial on-line service providers, bulletin board systems and the like. In yet other embodiments, the devices may communicate with the controller  200  over radio frequency (RF), cable television (TV), satellite links and the like. 
     Those skilled in the art will understand that devices in communication with each other need not be continually transmitting to each other. On the contrary, such devices need only transmit to each other as necessary, and may actually refrain from exchanging data most of the time. For example, a device in communication with another device via the Internet may not transmit data to the other device for weeks at a time. 
     The controller  200  may function as, or in conjunction with, a “Web server” that generates Web pages (documents on the Web that typically include an HTML file and associated graphics and script files) that may be accessed via the Web and allows communication with the controller  200  in a manner known in the art. 
     Devices 
       FIG. 2  illustrates an embodiment of the controller  200 . The controller  200  may be implemented as a system controller, a dedicated hardware circuit, an appropriately programmed general purpose computer, or any other equivalent electronic, mechanical or electro-mechanical device. 
     The controller  200  comprises a processor  210 , such as one or more Intel® Pentium® processors. The processor  210  is in communication with a communication port  220  through which the processor communicates with other devices. The processor  210  is also in communication with a storage device  230 . The storage device  230  comprises an appropriate combination of magnetic, optical and/or semiconductor memory, and may include, for example, Random Access Memory (RAM), Read-Only Memory (ROM), a compact disc and/or a hard disk. The processor  210  and the storage device  230  may each be, for example: (i) located entirely within a single computer or other computing device; or (ii) connected to each other by a remote communication medium, such as a serial port cable, telephone line or radio frequency transceiver. In one embodiment, the controller  200  may comprise one or more computers that are connected to a remote server computer for maintaining databases. 
     The storage device  230  stores a program  240  for controlling the processor  210 . The processor  210  performs instructions of the program  240 , and thereby operates in accordance with the present invention, and particularly in accordance with the methods described in detail herein. The program  240  may be stored in a compressed, uncompiled and/or encrypted format. The program  240  furthermore includes program elements that may be necessary, such as an operating system, a database management system and “device drivers” for allowing the processor  210  to interface with computer peripheral devices. Appropriate program elements are known to those skilled in the art, and need not be described in detail herein. 
     According to an embodiment of the present invention, the instructions of the program  240  may be read into a main memory from another computer-readable medium, such from a ROM to RAM. Execution of sequences of the instructions in program  240  causes processor  210  to perform the process steps described herein. In other embodiments, hard-wired circuitry may be used in place of, or in combination with, software instructions for implementation of the processes of the present invention. Thus, embodiments of the present invention are not limited to any specific combination of hardware and software. 
     In the embodiment depicted in  FIG. 2 , the storage device  230  also stores (i) a product database  300 , (ii) a customer database  400 , (iii) an available subscription database  500 , (iv) an active subscription database  600 , (v) a settlement database  700 , (vi) a subsidy database  800 , (vii) a penalty database  900 , and (viii) a modification database  1000 . The databases  300 - 1000  are described in more detail below and are depicted with exemplary entries in the accompanying figures. As will be described in more detail below, some or all of the information contained in the databases  300 - 1000  may be stored in storage devices associated with the customer devices  110 ,  120  and  130  and/or the retail devices  140 ,  150 , and  160 . 
     Databases 
     Reference will now be made to  FIGS. 3-10  which include tabular representations of the databases  300 - 1000 , respectively. Each of the tabular representations of databases include a number of example records or entries, each of which includes one or more fields. Each of the depicted fields has a field name. In referring to the tabular representations, reference to specific fields will be made using the field name and the corresponding field element number. Those skilled in the art will recognize that any number of records or fields may be provided. 
     As will be understood by those skilled in the art, the schematic illustrations and accompanying descriptions of the databases presented herein are exemplary arrangements for stored representations of information. A number of other arrangements may be employed besides those suggested by the tables shown. Similarly, the illustrated entries of the databases represent exemplary information only; those skilled in the art will understand that the number and content of the entries can be different from those illustrated herein. 
     Product Database 
     Reference is now made to  FIG. 3 , which is a tabular representation of the product database  300 . Each example record or entry of the product database  300  defines a specific product for which a subscription is available. This database may be established by the controller  200 , by retailers, and/or by manufacturers. In general, the product database  300  contains information used to identify and describe products for which subscriptions are available or for which subscriptions may be established using embodiments of the present invention. The term “product” is used herein to generically refer to goods, products, services or other items that 
     are purchased or consumed. 
     The tabular representation of the product database  300  includes a number of fields which specify (i) a product identifier  302 , (ii) a product description  304 , and (iii) a retail price  306 . For each entry of the product database  300 , the product identifier  302  may be established by the controller  200  or may be automatically assigned by the controller  200  as new products or sets of products are identified as available for subscriptions. The product identifier  302  may be a product name or any code or identifier (such as a Universal Product Code, or “UPC”) suitable for uniquely identifying a product, a type of product, or a set of products. The product description  304  may be any information used to describe the product or set of products identified by the product identifier  302 , and the retail price  306  may be any information used to specify a retail price for that product or set of products identified by the product identifier  302 . 
     Customer Database 
       FIG. 4  is a tabular representation of the customer database  400  which includes a number of example records or entries each defining a specific customer who is currently participating (or has participated) in the subscription system. In one embodiment, the customer database  400  is established and maintained by the controller  200 . Information stored in the customer database  400  is used to identify and track information about customers who are establishing or who have established subscriptions using embodiments of the present invention. In one embodiment, this information is provided by a customer when a customer first establishes a subscription. 
     The tabular representation of the customer database  400  includes a number of fields for each record or entry, specifying (i) a customer identifier  402 , (ii) customer data  404 , (iii) a payment identifier  406 , (iv) a set of contact information  408 , (v) an active subscription identifier  410 , and (vi) a subsidy(s)  412 . 
     For each entry of the customer database  400 , the customer identifier  402  is used to uniquely identify a particular customer, and may be any code or identifier associated with the customer or generated by the controller  200  that identifies the customer. For example, the customer identifier may be the customer&#39;s name, a credit card or other payment account number, a social security number, a drivers license number, a telephone number, a frequent shopper card number, biometric information associated with the customer, or any other code or identifier which may be used to uniquely identify the customer. The payment identifier  406  is used to identify a payment account which the customer provides for use in paying amounts or receiving credits associated with subscriptions. For example, in one embodiment, the customer may pay the controller  200  (or an entity operating the controller  200 ) for a subscription using the payment account identified by the payment identifier  406 . In other embodiments, this information is used to pay a retailer and/or a product manufacturer. Further, in some embodiments, the payment account identified by the payment identifier  406  is charged for penalties levied against the customer. In some embodiments, the payment identifier  406  is used to make payments to the customer, e.g., where the customer has earned a refund or credit. 
     For each entry of the customer database  400 , the customer data  404  may be, e.g., a customer name or any other information used to identify a particular customer. Customer contact information is specified in contact information  408 , and may include, for example, a customer address, telephone number, and/or electronic address. 
     For each entry of the customer database  400 , the active subscription identifier  410  is used to identify any subscription(s) entered into by the customer identified by the associated customer identifier  402 . The subsidy(s)  412  is used to identify any subsidy(s) associated with the customer identified by the associated customer identifier  402 . In some embodiments, as will be discussed further below, customers may receive subsidy amounts in conjunction with certain subscriptions. These subsidy amounts may be provided based on a number of different criteria or will be discussed below. 
     Available Subscription Database 
       FIG. 5  is a tabular representation of the available subscription database  500  which includes a number of example records or entries each defining the terms and details of a subscription which is available. In one embodiment, the data for the available subscription database  500  is generated by retailers who offer subscriptions to products. For example, a retailer may choose to define specific terms of an available subscription and submit those terms to controller  200  for inclusion in the available subscription database  500 . This allows the controller  200  to search for an available subscription that may meet a customer&#39;s needs. As will be discussed in more detail below, in some embodiments, new subscriptions may be created based on available subscriptions or they may be created based on information provided by the customer, retailers, and manufacturers or other parties. 
     The tabular representation of the database  500  also defines a number of fields for each record, specifying (i) a retailer  502 , (ii) an available subscription identifier  504 , (iii) a product identifier  506 , (iv) a subscription price  508 , (v) a frequency  510 , (vi) a duration  512 , (vii) a penalty  514 , (viii) a modification  516 , and (ix) a deposit amount  518 . 
     For each entry of the available subscription database  500 , the retailer  502  is data identifying a particular retailer offering a particular subscription. The retailer  502  may be data identifying a retail chain or it may be data specifying a particular store or group of stores. Further, the retailer  502  may be data identifying a manufacturer or other entity which allows customers to purchase subscription products according to the present invention. The data specified by the available subscription identifier  504  identifies a particular subscription offered by the retailer  502 . The available subscription identifier  504  may be a unique number or code assigned to the subscription by the controller  200  or it may be an identifier selected or generated by the retailer. 
     The product identifier  506  identifies a particular product offered in a subscription identified by the available subscription identifier  504 . The product identifier  506  may be the same as, or related to, product identifier  302  of  FIG. 3 . The product identifier  506  may identify a single, specific product, a product category, or a group of products. An example of a product category is “CEREAL,” or “SOFT DRINKS.” Products in the “SOFT DRINK” category may include specific brands of soft drinks. A group of products may be any group of more than one product. A group of products may be formed from unrelated products. 
     For each entry of the available subscription database  500 , the subscription price  508  identifies a specific price or price range for each subscription product in a subscription identified by the available subscription identifier  504 . The subscription price  508  may be identified, for example, by a set dollar amount, a range of prices, and/or a percentage of a price such as the retail price of the product identified by corresponding product identifier  506 . Retailers may use any of a number of ways to define the subscription price  508  for an available subscription. For example, in one embodiment, the subscription price  508  is a fixed price per unit of the subscription product identified by the product identifier  506 . Further, the retailer may establish a subscription price  508  that varies during the term of a subscription. For example, the subscription price may decrease progressively per unit of product purchased during the term of a subscription. The subscription price  508  may be the lowest retail price on the subscription product that occurs during the term of the subscription. Further still, the subscription price  508  may be an initial retail price that is “locked in” for a customer so that the price doesn&#39;t change despite fluctuations in the retail price of the product. 
     Embodiments of the present invention also permit a retailer to define available subscriptions in a manner that allows a customer to pay a different price per unit of a subscription. Other pricing arrangements are also possible using techniques of the present invention. Some of these arrangements will be described in more detail below in conjunction with the description of the active subscription database  600 . 
     For each entry of the available subscription database  500 , a frequency  510  identifies the frequency of an available subscription identified by the available subscription identifier  504 . For example, a retailer may require that, for a certain subscription, individual products be purchased on a weekly or monthly basis. The duration  512  identifies a duration of the subscription identified by the available subscription identifier  504 . Information regarding penalty(s) that are associated with a particular subscription is specified by the penalty(s)  514 . In the depicted embodiment, the penalty(s) associated with a subscription are defined by reference to penalty terms which are defined in the penalty database  900  (described further in conjunction with  FIG. 9 ). A modification  516  is also shown in the tabular representation of the available subscription database  500 . The modification  516  contains information about whether, and in what circumstances, modifications to the terms of a subscription may be made. The deposit amount  518  identifies whether a deposit amount must be paid by a customer signing up for the subscription, and if so, the value of the required deposit amount for a particular subscription identified by the available subscription identifier  504 . 
     Active Subscription Database 
     Referring now to  FIGS. 6A and 6B , a tabular representation of the active subscription database  600  is shown which includes a number of example records or entries each defining an active subscription which has been established. The active subscription database  600  is established and maintained by controller  200  using data provided by retailers, manufacturers and customers. The data for each record in the active subscription database  600  defines an active subscription that has been established for a particular customer. The active subscription includes information identifying the customer as well as terms and conditions of the active subscription. The terms and conditions of an active subscription may be established by the controller  200 , the retailer, the manufacturer, the customer, or any combination of the parties when a customer establishes a subscription. Certain fields of the active subscriptions database  600  may be directly derived from the available subscription database  500 , e.g., where the terms of an available subscription meet the needs of a particular customer. 
     The tabular representation of the active subscription database  600  defines fields for each of the entries or records, specifying (i) a redemption identifier  602 , (ii) a customer identifier  604 , (iii) a subscription product  606 , (iv) a subscription price  608 , (v) a frequency  610 , (vi) a retailer  612 , (vii) a start date  614 , (viii) an end date  616 , (ix) a date of last redemption  618 , (x) a quantity remaining  620 , (xi) a penalty  622 , and (xii) a status  624 . 
     For each entry of the active subscription database  600 , the data specified by the redemption identifier  602  is used to access or identify the details of a particular subscription established by the system for a particular customer. The redemption identifier  602  may be a unique number or code generated by the controller  200  or another entity to uniquely identify a particular subscription as associated with a particular customer. In some embodiments, the redemption identifier  602  is formed from information which identifies terms of a particular subscription. For example, the redemption identifier  602  may include a retailer identifier, a product identifier, a subscription price, and a unique number identifying a particular subscription. The redemption identifier  602  may be, for example, a sixteen digit number that includes a four digit retailer identifier, a four digit product identifier, a four digit subscription price, and a four digit number identifying a particular subscription. A customer uses this redemption identifier  602  to identify the active subscription established for the customer. 
     The subscription may be associated with a particular customer identified by customer identifier  604 . In other embodiments, a customer may remain anonymous. The customer identifier  604  may be the same as, or related to, the customer identifier  402  of  FIG. 4 . 
     Data specified by the subscription product  606  identifies the particular product which is the subject of the subscription identified by the redemption identifier  602 . The subscription product may be identified by a number or code such as the product identifier  302  of  FIG. 3 . The subscription product  606  may specify varying levels of product details. For example, a product may be identified by brand and size, or product code, or it may simply be specified by product category or group. In some embodiments, the subscription product  606  may initially be non-brand specific, but become brand-specific once the customer activates the subscription by redeeming a first subscription product of a particular brand. Further, in some embodiments, customers may establish subscriptions to any product sold by a retailer (i.e., the subscription product  606  is broadly defined as any product sold by the retailer). In other embodiments, the subscription product  606  is a group of products. Where the subscription product  606  is a group of products or any product at a retailer, the retailer may be allowed to choose specific products from the group each week to move slow inventory. 
     In yet another embodiment, the subscription product  606  may be undefined. Instead, the customer may simply establish a subscription to all products at a retailer and commit to spend at least a certain amount (the subscription price  608 ) at the retailer on a regular basis (the frequency  610 ). In other embodiments, the subscription product  606  may be defined based on the occurrence or non-occurrence of other conditions. For example, the customer may subscribe to a fruit of the week at a retailer, and the retailer may be able to select the fruit (e.g., based on availability, etc.). 
     Data specified by the subscription price  608  is also included for each subscription and may be, for example, the price, per unit of the subscription product, agreed-upon between the controller  200  and the customer as discussed below. The subscription price  608  may be the same as the subscription price  508  of the available subscription database  500  ( FIG. 5 ). In some embodiments, the subscription price is negotiated or otherwise defined by agreement with the customer. The subscription price  608  may be defined in a number of ways. For example, the subscription price  608  may be: a fixed dollar amount less than the retail price, a percentage of the retail price, an amount that decreases with each redemption, an amount that increases with each redemption, an amount equal to the lowest retail price of the product during the term of the subscription, an amount that decreases as time passes, etc. 
     Further, the subscription price  608  may be defined in a manner that allows a customer to pay a different price per unit of a subscription. For example, a customer may pay a different price per gallon of milk in a milk subscription, so long as the total amount paid for the subscription equals an agreed-to amount. For example, the active subscription database  600  may define a total subscription price (not shown) for a subscription. If the total subscription price for a milk subscription is $50.00 for twenty five gallons of milk, the system may allow the customer to pay $1.00 per gallon for the first twenty gallons and $6.00 per gallon for the final five gallons (or any other combination which equals the total price of $50.00). Alternatively, or in addition, the subscription price  608  may be established as a variable price. For example, the subscription price  608  that is established for a particular subscription may be defined as “20% LESS THAN THE RETAIL PRICE”. This value may vary as the retail price fluctuates. 
     The subscription price  608  (as well as other subscription terms) may depend on other factors as well. For example, the subscription price  608  may vary based on factors such as the frequency and duration of the subscription (e.g., the price may be lower for a subscription redeemed frequently and for a long period of time), the quantity of the subscription product, etc. The subscription price  608  may also depend on other subscriptions which have been established for a particular customer. For example, the loyalty of a customer who has established many subscriptions with a particular retailer may be rewarded by giving that customer a further reduced subscription price  608 . As another example, a customer who establishes multiple active subscriptions with the same retailer may receive a discount or other benefit. A customer may also receive a reduced subscription price  608  (or other favorable terms) if the customer establishes subscriptions at cooperating retailers or manufacturers. Those skilled in the art will recognize that other pricing schemes may be used according to embodiments of the present invention. 
     The frequency  610  includes data specifying a frequency term associated with the subscription identified by the redemption identifier  602 . The frequency is a term established between the controller  200 , the customer, and/or the retailer that specifies the frequency with which a customer must redeem subscription products to stay in compliance with the terms of the subscription. The frequency  610  may be dictated by frequency terms specified by the retailer in the available subscription database  500 . Data specified by the retailer  612  identifies one or more retailers at which the subscription may be redeemed by the customer. The retailer  612  may be established at the time of purchasing the subscription or it may be established at a later time (e.g., it may be established when the customer first redeems the subscription). 
     A start date and an end date of the subscription are specified by data in fields  614  and  616 , respectively. These dates are used to specify the beginning and expiration of the subscription and may be used, for example, to track whether the subscription is valid. The subscription start date  614  may be any of a number of dates, including the date the subscription is established, the date the customer first redeems a subscription product, and/or the date that a condition is fulfilled (e.g., the birth of a child, the date that the outside temperature exceeds 80° F., the date that baseball season starts, etc.). The subscription end date  616  may also be any of a number of dates, including: a date at the end of an agreed-upon subscription term, and a date that an agreed-upon event occurs (e.g., a child&#39;s birthday, the date that the outside temperature first falls below 32° F., the date that the baseball season ends, etc.). In some embodiments, a subscription may have an indefinite end date  616  and/or an unspecified start date  614 . 
     A date of last redemption  618  is used, for example, to track whether the customer is redeeming subscription products with the requisite frequency (i.e., according to the frequency specified in field  610 ). Data specified by the quantity remaining  620  tracks the quantity of subscription products that remain unredeemed as of the date of last redemption  618 . 
     Data specified by the penalty  622  identifies whether one or more penalties have been assessed to the particular subscription identified by the redemption identifier  602 . In the depicted embodiment, the penalty  622  is defined by reference to the penalty database  900 . As will be discussed further below, a penalty may be assessed if a customer violates one or more terms of the subscription. Data specified by the status  624  may be used to indicate a status of the subscription identified by the redemption identifier  602 . For example, a particular subscription may be tagged as being “INVALID” once the end date  616  has passed or after the quantity remaining  620  is equal to zero. 
     Other data may also be specified in the active subscription database  600 . For example, data regarding a required payment type may also be specified for a given active subscription. In some embodiments, an active subscription may be financial account specific and require that the customer use the specified amount (e.g., identified by a specified credit or debit card) each time the customer makes a subscription purchase. In some embodiments, customers are encouraged to establish multiple subscriptions using the same financial account. The issuer of the financial account may subsidize subscriptions that require payment using a specified financial account (e.g., a credit card issued by a particular financial institution). 
     The active subscription database  600  may also specify specific dates or times on which the customer must redeem subscription products. This allows a retailer to directly influence customer traffic flow. 
     In some embodiments, terms of a subscription may be changed based on the settlement term (discussed further below). For example, the controller  200  may lower a subscription price  608  if the controller  200  will receive a high settlement price for the subscription. 
     Settlement Database 
     Reference is now made to  FIG. 7 , which is a tabular representation of the settlement database  700  which includes a number of example records or entries each defining terms and procedures used to settle amounts owed between parties (e.g., between the controller  200 , retailers, and/or manufacturers). In some embodiments, the settlement database  700  may be maintained and controlled by the controller  200 , although the database  700  may be maintained and/or controlled by other entities as well. For example, settlement may be performed by a payment network or other entity that operates to move funds and data between parties. The settlement database  700  contains data and information used to facilitate settlement of funds owed between parties in the subscription system of the present invention. Settlement may occur between, for example, the controller  200 , manufacturers, and retailers. The settlement database  700  is referenced when settlement is performed. 
     The tabular representation of the settlement database  700  defines fields for each of the entries or records, which specify (i) a settled party  702 , (ii) a settlement price  704 , (iii) a settlement schedule  706 , and (iv) a commission fee paid to central system  708 . 
     For each entry of the settlement database  700 , the data specified by the settled party  702  specifies a party with which the controller  200  has established a settlement relationship. The settled party  702  is, for example, a participating retailer or manufacturer. The data specified by the settlement price  704  identifies the price term by which the controller  200  agrees to reimburse the settled party  702 . For example, in embodiments where the customer pays the subscription price to the controller  200 , the controller  200  may later settle with a retailer by paying the retailer an agreed upon settlement price for the subscription (e.g., the retail price minus a commission fee). In embodiments where the customer pays the subscription price directly to a retailer, the controller  200  may settle with the retailer by paying the retailer the settlement price (e.g., the difference between the retail price and the subscription price or some other agreed-to amount). In some embodiments, the retailer may agree to pay the controller  200  a commission fee  708  for each subscription or an amount each time a subscription product is redeemed. 
     The settlement database  700  may specify terms under which the controller  200  settles with other parties as well. For example, the controller  200  may pay, or receive payment from, a product manufacturer (e.g., the manufacturer may agree to pay the controller  200  a commission fee  708  for each subscription including one of the manufacturer&#39;s products) and/or a financial institution (e.g., the financial institution may agree to pay the controller  200  a set fee for each subscription which requires the use of a credit card issued by the financial institution). 
     The settlement database  700  may further specify terms by which the controller  200  facilitates settlement between other parties. For example, the controller  200  may facilitate settlement between retailers, manufacturers and other parties, such as financial institutions. In some embodiments, a manufacturer may pay a retailer an agreed-to amount for supporting or providing manufacturer-specific subscriptions. In other embodiments, a credit card issuing bank may pay the retailer or manufacturer an agreed-upon commission fee  708  for supporting subscriptions using the issuing bank&#39;s cards or for providing other promotional support. 
     In some embodiments, the settlement price  704  may depend on the terms of a particular subscription. For example, the settlement price  704  may be higher for subscriptions having longer durations or larger amounts of subscription products. In other embodiments, the settlement price  704  may include funds collected from penalties imposed on customers. As will become apparent upon reading this disclosure, other settlement terms and procedures may also be established. 
     For each entry of the settlement database  700 , the data specified by the settlement schedule  706  identifies the timing of settlement between the central system and the settled party  702 . A wide variety of settlement schedule terms may be specified, e.g., at redemption, on an established periodic basis, at the end of the subscription, etc. The data specified by the commission fee  708  identifies a fee (if any) to be paid to the central system and agreed to by the settled party  702 . A wide variety of fee arrangements may be used in embodiments of the present invention. For example, in one embodiment, the settlement terms may depend on a particular customer (e.g., a manufacturer may pay a larger fee for a customer who frequently purchases subscriptions to the manufacturer&#39;s products). 
     Subsidy Database 
     Referring now to  FIG. 8 , a tabular representation of the subsidy database  800  is shown, which includes a number of example records or entries each defining a subsidy and details of the subsidy which may be offered to a customer. In some embodiments of the present invention, the subsidy database  800  is maintained and controlled by the controller  200 , although the subsidy database  800  may be maintained and/or controlled by other parties as well. The subsidy database  800  includes data and information used to define different subsidy offers which may be presented to customers who establish subscriptions using the present invention. Subsidies can be targeted to specific customers or customers who meet certain criteria. For example, larger subsidy amounts may be presented to customers who have established many subscriptions in the past. The subsidy database  800  may also include data and information used to define different subsidy offers which are valid for specific products. Data for the subsidy database  800  may be provided from different parties offering subsidies. According to certain embodiments of the present invention, the subsidy database  800  is referenced when a customer establishes a subscription to a product for which a subsidy is offered. 
     The tabular representation of the subsidy database  800  defines fields for each of the entries or records and specifies (i) a subsidy identifier  802 , (ii) a subsidy provider  804 , (iii) an obligation  806 , and (iv) a subsidy amount  808 . 
     For each entry of the subsidy database  800 , the data specified by the subsidy identifier  802  identifies a particular subsidy. The subsidy identifier  802  may be, e.g., a unique number or code used to uniquely identify a particular subsidy. Data specified by the subsidy provider  804  is used to identify the provider of the subsidy identified by the subsidy identifier  802 . Data specified by the obligation  806  identifies one or more obligations that must be met by a customer for the customer to qualify for the subsidy in the amount specified by the subsidy amount  808 . 
     Penalty Database 
       FIG. 9  is a tabular representation of the penalty database  900  which includes a number of example records or entries each defining a particular penalty which may be levied against certain customers who fail to comply with term(s) of a subscription. According to certain embodiments of the present invention, the penalty database  900  is maintained and controlled by the controller  200 , although other entities may also maintain and/or control the database  900  as well. The penalty database  900  contains data and information defining different penalties and conditions under which those penalties may be imposed on a customer. These penalties and conditions may be established by the controller  200 , a retailer, a manufacturer or a combination of those entities. 
     The tabular representation of the penalty database  900  defines fields for each of the entries or records. The fields specify (i) a penalty code  902 , (ii) a penalty description  904 , and (iii) a penalty condition(s)  906 . For each entry of the database  900 , the data specified by the penalty code  902  includes information identifying a particular penalty that may be levied against a customer. For example, a customer may incur a penalty for violating one or more terms of a subscription, such as a failure to comply with terms specifying (i) the subscription product  606 , (ii) the subscription price  608 , (iii) the frequency  610 , (iv) the retailer  612 , (v) the start date  614 , or (vi) the end date  616 . Further, in certain embodiments, a customer may incur a penalty for failing to use an agreed-upon payment card. 
     A description of the penalty associated with the penalty code  902  is specified in the penalty description  904 , and condition(s) associated with the penalty are set forth in condition(s)  906 . The penalty may be any of a number of types of penalties, such as (i) the loss of some benefit the customer would have otherwise been entitled to if the subscription were fully complied with (e.g., a low subscription price), (ii) the loss of benefits related to a subscription (e.g., frequent shopper club benefits), (iii) termination of the subscription, (iv) increasing the subscription price, or (v) a financial penalty levied against the customer (e.g., charging a predefined fine amount to a customer). Further, the penalty may be a reduction or change in terms of the subscription. For example, if the subscription price is one that decreases progressively per unit of product purchased, the penalty may involve (i) resetting the subscription price to be equal to the retail price of the subscription product, (ii) causing the subscription price to remain at a set price without decreasing for a period, or (iii) increasing the subscription price by an amount. 
     In some embodiments, financial penalties are levied against a customer by charging an amount to the customer&#39;s payment account (identified by the payment identifier  406  stored in the customer database  400  of  FIG. 4 ). In other embodiments, financial penalties are levied by keeping some or all of the deposit amount  518  ( FIG. 5 ) paid by the customer. The penalty amount can be determined in any of a number of different ways, e.g., by penalizing the customer an amount equal to the amount of discounts the customer received with respect to a given subscription. The penalty amount can be calculated in other ways as well. For example, the penalty amount may be calculated based on (i) the subscription price, (ii) the retail price of the subscription product at the end of the subscription, (iii) the average, lowest, or highest retail price of the subscription product during the subscription, and (iv) a price agreed-upon by the customer and the controller  200 . 
     In some embodiments, the penalty associated with the penalty code  902  may involve withholding an amount from the customer until the customer fulfills the terms of the subscription. The amount withheld may be obtained from the customer upfront (e.g, the deposit amount  518  of  FIG. 5 ) or may be collected during the course of the subscription. At the end of the subscription period, if no penalty is assessed, the customer will receive the total amount withheld. If the customer violates one or more terms of the subscription agreement, the amount may be kept by the controller  200  and/or retailer. 
     In some embodiments, the customer is given the opportunity to cure a violation before being penalized. For example, in some embodiments, a customer who misses a redemption may be given an extension of time during which to fulfill the conditions of the subscription. 
     In some embodiments, the penalty database  900  may also include a penalty code  902 , penalty description  904 , and penalty condition(s)  906  which apply to a retailer. For example, the penalty conditions  906  may specify that the retailer will be penalized for hindering or preventing a customer from fulfilling his subscription (e.g., if the retailer runs out of the product). The retailer may be required to offer the customer a further discount on the product, or provide the customer with a coupon or rain check. Further, the customer may be allowed to redeem the subscription product at a different retailer or to exchange it for a different product. This ensures that customers are not penalized for stocking or supply problems of the retailer. 
     Those skilled in the art will recognize that other penalty arrangements may be used in embodiments of the present invention. 
     Modification Database 
       FIG. 10  is a tabular representation of the modification database  1400  which includes a number of example records or entries each defining the terms associated with a particular modification request which may be received concerning subscriptions established using the present invention. In one embodiment, the database  1000  includes a number of different types of modifications which may be permitted for different subscriptions. In generating an active subscription, one or more of the types of modifications may be specified as available for the active subscription. The listing of types of modifications in database  1000  may not be exhaustive. Customers and retailers may agree to different modification terms when establishing active subscriptions. 
     Each record or entry of the modification database  1000  includes a number of fields which specify (i) a modification request  1002 , (ii) a modification rule  1004 , and (iii) a modification penalty  1006 . For each entry of the database  1000 , the data specified by the modification request  1002  identifies a particular type of modification request that may be made by, e.g., a customer or retailer participating in the system. For example, a customer having a subscription may request that the duration of an established subscription be extended or shortened (i.e., a request to enter “EXTEND DURATION,” or “SHORTEN DURATION”). A wide variety of types of modifications may be included in the modification request  1002  of the database  1000 . Each modification request  1002  may have an associated modification rule  1004  (e.g., conditions on the frequency or timing of a particular request) and an associated modification penalty  1006  (e.g., a fee to be charged for the modification, etc.). 
     In some embodiments, customers may be allowed to request a “TRANSFER” of the subscription to another customer. For example, an existing customer who currently has a one-year subscription to bananas may decide after four months that he no longer wishes to maintain the subscription. If the modification database  1000  indicates that a “TRANSFER” is an acceptable modification, the customer may find another individual to transfer the subscription to. In some embodiments, a subscription exchange or other forum may be established by the controller  200  to facilitate the identification of such transferees. In some embodiments, the “TRANSFER” may simply entail transferring the terms of the subscription to the new customer. In other embodiments, the transfer may require the transfer of funds such as an initial deposit (or portion of the deposit) to the new customer. In some embodiments, a “TRANSFER” may be used to replicate the terms of an active subscription for one or more new customers. 
     In other embodiments, customers may be allowed to request a “ROLLOVER” of the subscription to a new subscription product. For example, if a customer establishes a one-year subscription to “HAMBURGER” and thereafter decides to become a vegetarian, the customer may be allowed to modify the subscription by changing it into a subscription to “SOY BURGERS,”. In some embodiments, the customer may be required to pay a modification penalty  1006  for this modification. 
     In other embodiments, customers or the retailer may be allowed to “TERMINATE” a subscription. For example, a customer may be allowed to prematurely end a subscription due to changed circumstances. Again, this may require the payment of a modification penalty  1006  for the termination. Similarly, a retailer may be permitted to “TERMINATE” a subscription due to changed circumstances such as the unavailability of the subscription product. The retailer may be subject to a modification penalty  1006  or be required to refund some or all of the customer&#39;s money or provide an acceptable substitute. 
     Process Description 
     Process Overview 
     A process of the present invention will now be described to illustrate how subscriptions may be established and redeemed and how parties may settle funds among one another. Referring to  FIG. 11 , a flow chart  1100  represents a process according to an embodiment of the present invention that may be performed by the controller  200  in conjunction with a customer device  110  and a retailer device  140  ( FIG. 1 ). The particular arrangement of elements in the flow chart of  FIG. 11 , as well as the other flow charts discussed herein, is not meant to imply a fixed order to the steps; rather, embodiments of the present invention can be practiced in any order that is practicable. 
     According to an embodiment of the present invention, the subscription management process  1100  begins with the establishment of a subscription and arranging for fulfillment of the subscription (at  1200 ). A customer, or group of customers, establishes a subscription by communicating with the controller  200  and by selecting and negotiating terms of a subscription for a product or set of products. In some embodiments, customers may select subscriptions to products based on retailer, manufacturer, product, and/or product category. Terms of a subscription may be set by the retailer or manufacturer, or some or all of the terms may be negotiated by the customer. Once a subscription is established, the system operates to arrange for fulfillment. This can be performed in a number of ways. For example, the controller  200  may forward details regarding a particular subscription to a retailer so the retailer has those details before the customer arrives to redeem the subscription. As an alternative example, the controller  200  does not communicate subscription information to retailers; instead, the customer may be given subscription identifying information which the customer presents to the retailer at the time of purchasing a subscription product. The retailer then contacts the controller  200  for authorization of the purchase transaction. Other techniques for arranging fulfillment will become apparent upon reading this disclosure. A further discussion of the establishment of a subscription and arranging for fulfillment is provided in conjunction with  FIG. 12 . 
     Once a subscription has been established, processing continues to a fulfillment process  1300 . As will be discussed in further detail below in conjunction with  FIG. 13 , the fulfillment process  1300  may be performed in a number of different ways. For example, in a controller-based embodiment, the controller  200  performs the function of tracking and authorizing subscription fulfillment by receiving an authorization inquiry from participating retailers for each subscription redemption request. In a retailer-based embodiment, the retailer device  140  performs some or all of the function of tracking fulfillment by tracking individual transactions involving subscriptions redeemed at that retailer. Further, in a customer-based embodiment, the customer device  110  performs some or all of the function of tracking fulfillment by tracking individual redemption transactions of a particular customer. 
     The subscription process  1100  also includes a settlement process  1400 . Settlement  1400  will be described in more detail below in connection with  FIG. 14 , and may take several forms and involve several different parties. For example, the controller  200  may agree with retailers and manufacturers to reimburse the retailers and manufacturers for fees and costs associated with participating subscriptions. Settlement  1400  between parties may be performed on a periodic or otherwise agreed-to basis. 
     The result is a system which allows customers to purchase subscriptions to products from a large number of retailers. Embodiments of the present invention provide an efficient and centralized system for the establishment, fulfillment, and settlement of subscriptions among multiple customers and retailers. 
     Subscription and Arranging Fulfillment Process 
     One embodiment of a process  1200  for establishing a subscription and arranging fulfillment is described by referring now to  FIG. 12 . The process  1200  typically begins with the receipt, by the controller  200 , of a request to establish a subscription at  1202 . The request may be generated by a prospective customer operating a customer device  110  in communication with the controller  200 . Alternatively, a customer may communicate with the controller  200  via a point of sale device (such as the retailer device  140 ) located at a retailer location. 
     Upon receipt of the request to establish a subscription, a determination is made whether the customer is a new customer (at  1204 ). If so, processing proceeds to  1206  where customer information is received. This information may be received by the controller  200  in a variety of manners. For example, in an Internet Web-based environment, the customer may be prompted to provide information, and information may be received by the controller  200 , using electronic forms or other well-known techniques. As another example, the customer may establish a subscription using a telephone and interact with the controller  200  via an interactive voice response unit (IVRU). Further, the customer may establish a subscription using traditional mail or electronic mail. 
     The controller  200 , upon receipt of the customer information, will generate or assign a customer identifier at  1208 . This customer identifier and the customer information are stored at  1210 . As an example, illustrated by reference to the customer database  400  of  FIG. 4 , the customer information received at  1206  includes the customer data  404  (e.g., the customer&#39;s name), the payment identifier  406  (e.g., a credit card number), and the contact information  408  (e.g., the customer&#39;s address). The customer identifier  402 , as depicted in the first record of the customer database  400 , may be the same as the payment identifier  406 . Alternatively, or in addition, the customer identifier  402  may be a unique number, code or other indicia generated by the controller  200  for each customer. 
     If, at  1204 , a determination is made that the customer is an existing customer, the customer may simply provide an existing customer identifier  402  (at  1212 ). The controller  200  then retrieves customer data (at  1214 ). In some embodiments, such as Internet-based embodiments where the customer uses a Web “browser” to interact with the controller  200 , the customer identifier  402  may be stored in the customer&#39;s browser as a “cookie” so that the customer may be automatically identified to the controller. In some embodiments, customers who are repeat customers are rewarded. For example, customers may be rewarded with more beneficial subscription terms based on the number of subscriptions the customer has with (i) the controller  200 , (ii) each retailer, or (iii) each manufacturer. Further customers may be rewarded for their use of a particular credit card or financial account. 
     Once the customer has been identified to the controller  200 , processing proceeds to  1216  where the system functions to determine subscription terms. This may occur in a number of ways. For example, a customer may contact controller  200  and browse through a menu or selection of available subscriptions. The customer may also request a specific product and construct a new subscription for that product. The customer may also specify one or more desired term(s) of the subscription, such as a desired price, a desired brand, a desired quantity, etc. Further, the customer may specify certain terms and specify an acceptable range for other terms. In some embodiments, the customer may weight desired terms. For example, the customer may indicate that a desired subscription price is the most important term and that the specific retailer is less important. Further, the customer may submit offers for multiple subscriptions and indicate that being able to pick up all of the subscription items at a single retailer is the most important criteria. 
     The customer may specify or establish ranges for all of the terms or may allow the controller  200  to supply certain terms. The controller  200  may then create or select an appropriate subscription based on the customer&#39;s request. In some embodiments, the controller  200  may perform a screening process to ensure the customer&#39;s request meets minimum subscription requirements established by the controller  200 , retailers, and manufacturers. 
     As an example illustrated by reference to the product database  300  of  FIG. 3  and the available subscription database  500  of  FIG. 5 , the customer may request a subscription to SOFT-brand toilet paper, in 4-roll packages (identified in the product database  300  as having a product identifier  302  of “P1111”). This product identifier  302  is used to determine whether any subscriptions are available to that particular product. Reference to the available subscriptions database  500  shows that several retailers offer subscriptions to product “P1111”—“JOE&#39;S STORE” (under the available subscription identifier  504  “SR1111”) and “SAM&#39;S STORE” (under the available subscription identifier  504  “AP1111”). In establishing a request for the subscription, the customer may be presented with several choices. For example, the customer may be presented with a list of penalties from which to choose. The customer&#39;s selection of penalties and other terms may have a direct impact on the subscription price or other subscription terms (for example, a customer who is willing to accept severe penalties may receive a lower subscription price because that customer is less likely to breach the subscription agreement). 
     In one embodiment, the respective terms of these available subscriptions are retrieved and presented to the customer without modification by the controller  200  (e.g., they are determined by the retailer and/or manufacturer). The customer is then given the opportunity to determine whether the terms are acceptable at  1218 . In other embodiments, the terms of the available subscriptions may be modified by the controller  200  before they are presented to the customer. For example, referring to available subscription “SR1111” of  FIG. 5 , the controller  200  may modify the subscription price  508  and offer the subscription to the customer at a price of “$1.25” (per unit of the subscription). This modification complies with the retailer&#39;s requirement that the subscription price be greater than or equal to “$0.99” per unit. The controller  200  may further modify the available subscription by specifying that the frequency be “WEEKLY” for one year. This subscription, as modified by the controller  200 , may then be presented to the customer for approval. 
     In some embodiments, the controller  200  forwards a customer&#39;s request on to one or more retailers, manufacturers, or other entities for their review and acceptance. These parties may generate a counter-offer to a customer&#39;s request which may be presented to the customer by the controller  200 . Customer&#39;s may enjoy better subscription terms as a result of competition between multiple parties. 
     In some embodiments, the controller  200  and/or the retailer or manufacturer (via the controller  200 ) may offer the customer a lower subscription price if the customer agrees to modify other terms of the subscription. For example, a retailer may offer a lower subscription price to a customer who agrees to increase the subscription frequency  610 , the penalty  622 , or the duration of the subscription. Further, a customer may be presented with a subsidy offer which may reduce the price of the subscription or modify other terms of the subscription. The subsidy may be a subsidy defined in, e.g., subsidy database  800  ( FIG. 8 ). 
     Alternatively, or in addition, the customer may be given the opportunity to dictate or modify some or all of the terms of the subscription. For example, the customer may specifically request a one year subscription, on a weekly basis, to SOFT-brand toilet paper for a per-unit price of “$1.50”. The controller  200 , using this information, determines that at least two available subscriptions satisfy the customer&#39;s request: “JOE&#39;S STORE&#39;s” available subscription number “SR1111” and “SAM&#39;S STORE&#39;s” available subscription number “AP1111.” Once the controller  200  and the customer have arrived at an agreement regarding the terms and conditions of the new subscription, processing continues to  1222  where the subscription is established. In one embodiment, described by referring to  FIG. 6A , the subscription is established by assigning a redemption identifier  602  to a new entry in the active subscription database  600 . The terms and conditions of the agreed-upon subscription are associated with the redemption identifier  602 . As an example, referring to the first depicted record of the active subscription database  600 , a redemption identifier  602  of “R5555” is used to refer to a subscription established for customer identifier “234-678-9011” (Ms. Bethany Jones identified in the customer database  400 ) which requires Bethany to purchase. SOFT-brand toilet paper (product identifier “P1111”) each week for a year at “SAM&#39;S STORE.” In return, Bethany receives the subscription price of $1.50 per unit of the subscription. In this example, no penalty  622  will be imposed if Bethany fails to comply with the terms of the subscription. 
     In some embodiments, establishment of a subscription  1222  may leave one or more terms of the subscription open. For example, in one embodiment, a subscription may be established without final selection of a specific retailer at which the subscription may be redeemed (e.g., the retailer  612  of  FIG. 6A  may be left blank at the end of the process of establishing a subscription). In this embodiment, the final selection of the retailer may be completed when the customer redeems the first product of a subscription at a participating retailer. As an example, a customer may establish a subscription that has an undefined retailer  612 . The customer may be presented with a list of retailers at which the subscription will be accepted. The customer may then finalize the establishment of the subscription by redeeming the first product of the subscription at a participating retailer (that is, a retailer that was on the list provided to the customer and which honors subscriptions established by the controller  200 ). This allows a customer to select a favorite or most convenient retailer for the subscription. 
     In some embodiments of the present invention, establishment of a subscription  1222  may require that the customer pay a total subscription price (e.g., the subscription price multiplied by the number of products in the subscription) to the controller  200  at the time of establishing the subscription, or each time the customer redeems a subscription product. In other embodiments, the customer pays the retailer each time the customer redeems a subscription product. Further, the retailer and/or the customer may agree to pay a fee to the controller  200  for establishing the subscription. 
     Once the subscription is established, a redemption identifier is communicated to the customer at  1224 . This may be performed in any of a number of ways. For example, the redemption identifier may be communicated via an IVRU, over the Internet, via mail, etc. In embodiments where privacy and security are desired, the redemption identifier may be encrypted or otherwise encoded in a manner which prevents unauthorized parties from receiving or using the redemption identifier. 
     In some embodiments, subscription information is also communicated to retailer(s) at  1226 . For example, the details of a particular subscription may be forwarded to the retailer or retailers at which the subscription will be honored. In other embodiments, the particular retailer(s) are not identified until later in the process and no subscription information can be forwarded. In still other embodiments, no information need be communicated to the retailer until a retailer contacts the controller  200  to authorize a subscription transaction. 
     Fulfillment Process 
     A process  1300  for arranging for the fulfillment of the subscription is described by referring now to  FIG. 13 . The fulfillment process  1300  begins at  1302  where a subscription is identified. A subscription may be identified, for example, when a customer presents a product for purchase at, e.g., a retail point of sale. For example, the customer may indicate that the product is part of a subscription by entering the redemption identifier  602  into retailer device  140 . Further, the retailer device  140  may automatically determine that the product is part of a subscription, for example, by reading a frequent shopper card presented by the customer. The frequent shopper card may store information that allows the retrieval or identification of the redemption identifier  602 . As a further example, a subscription may be identified by forwarding customer information and product information to the controller  200  for authorization of a transaction. Any of these techniques may be used to identify a subscription at  1302 . 
     In one embodiment, once the redemption identifier  602  has been presented to the retailer device  140 , the redemption identifier  602  is used to retrieve information about the subscription at  1304 . The information retrieved can include information from active subscription database  600  ( FIG. 2 ). In some embodiments, the information is retrieved from the customer (e.g., from a frequent shopper card, smart card, or PDA carried by the customer), from the retailer (e.g., from information stored at the retailer device regarding the active subscriptions offered by a particular retailer), and/or from the controller  200 . 
     At  1306  a check is made to determine whether the subscription identified by the redemption identifier  602  is still valid. For example, this determination may be made based on retrieving the end date  616  ( FIG. 6B ) and comparing it with the current date to determine if the subscription has expired. Alternatively, or in addition, the check can involve retrieving information regarding the quantity remaining  620  ( FIG. 6B ) and determining whether the subscription has any units of products remaining for redemption. If the subscription is no longer valid, processing may terminate. Alternatively, the customer may be given the option to renew or reestablish the subscription, e.g., by following the procedure for establishing a subscription set forth above and described in conjunction with  FIG. 12 . 
     If the check at  1306  ascertains that the subscription is valid, processing continues to  1308  where a determination is made whether the subscription has been properly presented. For example, this may include ascertaining that the product being purchased by the customer is the subscription product  606  ( FIG. 6A ). Further, the identity of the retailer can be compared with the stored information about the retailer  612  ( FIG. 6A ). Other checks may also compare the start date  614  (has the start date arrived yet?), and the frequency  610  and the date of last redemption  618  (is the customer redeeming with the appropriate frequency?). These checks may be conducted locally if the retailer stores information about the subscription. Alternatively, or in addition, the checks may require that contact with the controller  200  or some other third party (such as a credit card network) be established. For example, an authorization request may be communicated from the retailer device  140  to the controller  200  transmitting information about the requested transaction. The controller  200  can then perform the checks to determine if the subscription is valid (at  1306 ) and if the subscription is properly presented (at  1308 ) and respond with an authorization or a denial of the transaction. In another embodiment, the checks at  1306  and  1308  may be performed by querying a customer device such as a smart card or frequent shopper card which stores or is associated with information about the subscription. 
     If the checks show that the customer is not redeeming the subscription properly (that is, the customer is in violation of one or more terms and conditions of the subscription as defined in active subscription database  600 ), a determination is made at  1310  whether a penalty should be assessed. As an example, if the check at  1308  reveals that the customer is not complying with the frequency term of the subscription (as defined by field  610  of  FIG. 6A ) and the penalty code (as defined by field  622  of  FIG. 6B  and fields  902 - 906  of  FIG. 9 ) indicates that a penalty is to be applied for violations of the frequency term, the transaction may be completed, but only after a penalty has been applied. In this example, the penalty is “RAISE SUBSCRIPTION PRICE $0.05” (as defined by the penalty description  904  associated with the penalty code “X3”). After assessing the penalty, processing continues to  1312  where the transaction is completed. In some embodiments, the transaction will not be able to be completed, even with a penalty and processing terminates. 
     In one embodiment, a customer may be given the opportunity to modify the terms of his subscription. Whether a customer may be given the opportunity to modify the subscription may be set forth, e.g., in modification database  1000  ( FIG. 10 ). 
     If the checks show that the customer is redeeming the subscription properly (as defined by the terms and conditions of the subscription), processing continues to  1310  where the transaction is completed (i.e., the customer pays the subscription price  608  ( FIG. 6A ) and receives the subscription product  606 ). In some embodiments, where the customer paid the subscription price in advance (e.g., during establishment of the subscription), the customer may not need to pay any amount for the subscription product at  1310 . 
     The transaction may be completed at  1310  in a number of ways. For example, in some embodiments, the retailer may perform a price override at a POS terminal to override the retail price for a product and to reflect the subscription price. The price override may also be performed by providing a discount in the amount of the difference between the retail price and the subscription price. This price override may be authorized locally, or it may be authorized by controller  200  or by a third party such as a credit card processor or payment network. In some embodiments, the transaction is completed at  1310  with the customer paying the full retail price for the product and later receiving a credit back for the difference between the retail price and the subscription price. Those skilled in the art, upon reading this disclosure, will recognize that other methods and approaches for completing the transaction may also be used. 
     Processing continues to  1312  where the subscription is updated to reflect the transaction. For example, information in the active subscription database  600  ( FIG. 6A  and  FIG. 6B ) is updated to reduce the quantity remaining  620  and to revise the date of last redemption  618 . This updating may be performed locally by the retailer device  140  ( FIG. 1 ) or it may involve transmitting update information to the controller  200 , to the customer device  110 , or to a customer transaction card or smart card (not shown). 
     In some embodiments, the fulfillment process  1300  does not involve communication between a retailer and controller  200  for each subscription transaction. Instead, retailers may communicate information about subscriptions to the controller  200  on a periodic basis. For example, a retailer may submit subscription information to the controller  200  on a nightly basis. Further, in certain embodiments, the retailer may only submit information to the controller  200  after a customer has completed a subscription. 
     In other embodiments, the fulfillment process  1300  requires that the customer (rather than the retailer) interact with the controller  200 . For example, a retailer may give a customer a code or confirmation number indicating that the customer has properly redeemed a subscription product or has successfully completed a subscription. The customer may then communicate this code or confirmation number to the controller  200  to inform the controller  200  of the status of the fulfillment. Those skilled in the art, upon reading this disclosure, will recognize that other fulfillment techniques may also be performed. 
     Settlement Process 
       FIG. 14  depicts a process for settlement  1400 . According to embodiments of the present invention, the settlement process  1400  may occur at different times and in different manners. For example, in one embodiment, the settlement process  1400  occurs one time for each subscription at either the beginning or the end of the subscription. In other embodiments, the settlement process  1400  is performed a number of times during the term of a subscription. For example, a retailer may be paid (or may pay) a fee for each subscription product redeemed. 
     The terms of settlement are established at  1402 . The terms may be established when a retailer or manufacturer first establishes a relationship with the controller  200  or otherwise offering services according to embodiments of the present invention. Settlement terms which may be established are shown in the settlement database  700  ( FIG. 7 ), and may include terms identifying the settled party  702 , the settlement price  704 , the settlement schedule  706  and the commission fee (if any)  708 . Other terms needed to define a settlement relationship may also be established. For example, payment terms may be included if a retailer has specific requirements regarding the form of settlement payments. 
     Once the settlement terms for a particular party (e.g., retailer or manufacturer) are established, processing continues to  1404  where a determination is made whether the settlement terms have been fulfilled. This may involve, for example, retrieving information about all active subscriptions (e.g., from active subscription database  600  of  FIG. 6A  and  FIG. 6B ) relating to a particular retailer or manufacturer and determining whether the status of any active subscriptions requires settlement with a particular retailer or manufacturer. This determination of whether terms have been fulfilled may be performed on a periodic basis (e.g., nightly) or may be performed whenever records of the active subscription database  600  are updated. 
     If a determination is made that settlement terms with a particular party have been fulfilled, processing continues to  1406  where the settlement price defined in the settlement database  700  ( FIG. 7 ) is paid. This process continues as long as the party continues to be a participant in the system of the present invention. Settlement between other parties may also be facilitated by embodiments of the present invention. For example, settlement between the controller  200  and a manufacturer may be performed where the manufacturer has provided a subsidy for a subscription. As a further example, settlement between a retailer or the controller  200  and a credit card issuer may also be performed. 
     Additional Embodiments 
     The following are several examples that illustrate additional embodiments of the present invention. These examples do not constitute a definition of all possible embodiments, and those skilled in the art will understand that the present invention is applicable to many other embodiments. Further, although the following examples are briefly described for clarity, those skilled in the art will understand how to make any changes, if necessary, to the above-described apparatus and methods to accommodate these and other embodiments and applications. 
     According to one embodiment of the present invention, a customer may choose to prepay for the entire subscription. If the customer fails to comply with any of the terms and conditions of the subscription, he may be penalized by withholding one or more subscription products, by losing all or a portion of the prepaid amount, etc. In other embodiments, the customer may choose to pay for the entire subscription in a lump sum during the term of the subscription (e.g., after the first product has been redeemed), or at the end of the subscription. 
     According to another embodiment, retailers may remind customers who have failed to redeem subscription products. For example, a retailer may identify a customer during a check-out transaction (e.g., via the customer frequent shopper card) and check to see the status of any subscriptions held by the customer. If the customer has one or more subscriptions with the retailer which are delinquent (e.g., one or more subscription products has not been redeemed). The retailer may remind the customer that he needs to redeem the items. This reminder may be presented in a number of ways. For example, a terminal may prompt the cashier to remind the customer or a reminder may be printed on the customer&#39;s receipt. In other embodiments, customers may be presented with other types of reminders to redeem subscription products (e.g., e-mail or regular mail reminders may be sent). 
     According to another embodiment of the present invention, customers who refer new customers to the controller  200  may receive a benefit such as more favorable subscription terms. For example, the controller  200  may track whether a new customer who establishes a subscription was referred by an existing customer. If the new customer is a referral, the existing customer may receive a benefit such as a dollar credit toward the existing customer&#39;s next subscription. Those skilled in the art will recognize that other benefits and incentives may also be provided to encourage existing customers to generate referrals. 
     According to another embodiment of the present invention, upon establishing a subscription, the customer may receive a number of vouchers or coupons for each product in the subscription. The vouchers or coupons may be encoded with information regarding the product, the redemption identifier, and the subscription price. In some embodiments, the customer can pre-pay for the vouchers or coupons. In other embodiments, the voucher or coupon is used to notify the retailer of the subscription price that is to be extended to the customer. In some embodiments each voucher or coupon has a specific date or range of dates for which it is valid. In this manner, the coupons can regulate the frequency requirement of the subscription (e.g., for a four week subscription which is to be redeemed weekly, four coupons dated a week apart can be issued). 
     In another embodiment, the customer may be a group of individuals who have agreed among themselves to jointly establish a subscription (e.g., to qualify for a larger discount in return for the commitment to purchase a greater quantity of items). As a further embodiment, rather than establish a single group subscription, individuals may be able to link different subscriptions to jointly qualify for greater savings. The members of a group need not know each other or shop at the same retailer. Each member of the group may have separate redemption identifiers that are linked at controller  200 , or they may each share the same redemption identifier. Each of the members of the group may keep track of the status of subscriptions through, e.g., a Web site, a kiosk, or through printed status updates on receipts. In one embodiment, the failure of one member of the group to properly redeem subscription items affects the level of benefits that all members of the group receive. Peer pressure from the group should encourage other members to properly redeem items. 
     A number of additional ways of establishing a subscription may be used. For example, the customer may operate a portable customer device  110  (such as a PDA) and may receive offers for subscriptions, e.g., while shopping at retail stores. Further, subscription offers may be printed on product packaging as, e.g., a scannable product code. A customer may initiate the process for establishing a subscription by presenting the product to a cashier and choosing to accept a subscription to the product. In one embodiment, the initial product (the product scanned at the cashier) is the first product of the subscription. Alternatively, or in addition, the subscription can be established by phoning in a code printed on product packaging. 
     In other embodiments, a customer may be given the chance to donate some or all of the benefits associated with a subscription to a third party, such as a charity. For example, a customer may choose to donate his savings from the subscription (e.g., the difference between the subscription price and the retail price) to a charity. Further, the terms of a subscription may be defined such that the retailer will donate products or discounts on products to a charity for each subscription established or for each subscription product redeemed. In another embodiment, the customer may choose to pay a higher subscription price per subscription product and to have the extra amount paid credited to a charity or to another customer&#39;s subscription. 
     In other embodiments, a customer may be given the opportunity to change terms of the subscription. For example, a customer may be able to transfer a subscription to another customer. A customer may also be able to sell the subscription back to the controller  200  or the retailer by paying an agreed-upon fee. A customer may also be given the opportunity to, e.g., access a Web site and modify terms of an existing subscription. 
     Although the present invention has been described with respect to a preferred embodiment thereof, those skilled in the art will note that various substitutions may be made to those embodiments described herein without departing from the spirit and scope of the present invention.