Patent ID: 7133848

Claim:
A system for dynamically pricing a product, the system comprising: means for collecting and storing data on past and current sales; means for forecasting normalized future sales volume based upon the past sales data; means for forecasting normalized future sales volume based upon the past sales data; means for determining price sensitivity of consumers to changes in price of the product based upon past data, wherein the means for determining price sensitivity uses a logistic mathematical model that comprises a price sensitivity function: F PS ( P )=0.2*{1−[Arc-Tan(α*( P final –P REF ))*2/Pi]}, wherein P ref is a reference price P ref , P final is final price, and α is empirically determined according to the past and current sales data; means for forecasting future sales volume at different prices by adjusting the normalized future sales volume forecast by the price sensitivity; means for accepting user input to define for one or more strategic objectives, means for determining an optimal price according to the strategic objectives using the future sales volume forecast and costs for the product; and means for evaluating the current sales at the optimal price and for using the evaluation to modify the optimal price according to the strategic objectives.