Patent ID: 8234225

Claim:
An electronic price optimization system for recommending product price changes to a user, the electronic price optimization system comprising: at least one computer processor and storage, the storage storing a plurality of analytic modules, the plurality of analytic modules including software for calculating product price recommendations from at least two of the group of analytic modules consisting of analytic modules functioning on baseline demand, sales promotion, volume margin, current competitor price, brand equity, category margin, and price per unit; at least one of the at least one computer processor for executing the software to calculate the product price recommendations; at least one of the at least one computer processor for executing software for developing a loss function associating a loss with a deviation between a potential final recommended product price provided by the electronic price optimization system and at least some of the calculated product price recommendations, wherein the loss function comprises: Loss=(|Price(recommended[overall])−Price(recommended [module])|−Tolerance)^ L{Min 0} where Price(recommended[overall] is the price based on the weighted average of all modules used, Price(recommended [module]) is the recommended price from one of the at least two Market Based Price Optimization System analytic modules, Tolerance is the acceptable distance between the two prices (defined by the user), L is the loss exponent, adjustable within the software based on the preference of the user-retailer, and {Min 0} means that loss cannot be below zero; at least one of the at least one computer processor for calculating the sum of the losses; and at least one of the at least one computer processor for calculating a final recommended product price that minimizes the sum of the losses.