Patent ID: 8478620

Claim:
A computer-implemented method for profit comparison comprising: determining, via a computer, a first expected profitability of a flexible duration extended warranty offering based on a first plurality of warranty parameters including a demand for the flexible duration extended warranty offering, a probability of failure of hardware associated with the flexible duration extended warranty offering, and a price of the flexible duration extended warranty offering; determining, via the computer, a second expected profitability of a fixed duration extended warranty offering based on a a second plurality of warranty parameters including a demand for the fixed duration extended warranty offering, a price of the fixed duration extended warranty offering, and a probability of failure of hardware associated with the fixed duration extended warranty offering; comparing, via the computer, the first expected profitability and the second expected profitability to determine a profit lift of the flexible duration extended warranty offering over the fixed duration extended warranty offering; and presenting results of the comparison, via the computer, for a plurality of values of the first and second plurality of warranty parameters.