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US20040193517A1 - Device and method for pricing repair services - Google Patents

Device and method for pricing repair services Download PDF

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Publication number
US20040193517A1
US20040193517A1 US10/771,132 US77113204A US2004193517A1 US 20040193517 A1 US20040193517 A1 US 20040193517A1 US 77113204 A US77113204 A US 77113204A US 2004193517 A1 US2004193517 A1 US 2004193517A1
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United States
Prior art keywords
pricing
services
price
customer
service
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Legal status (The legal status is an assumption and is not a legal conclusion. Google has not performed a legal analysis and makes no representation as to the accuracy of the status listed.)
Abandoned
Application number
US10/771,132
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English (en)
Inventor
James Abrams
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ENTERPRISE BANK & TRUST Co
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Individual
Priority date (The priority date is an assumption and is not a legal conclusion. Google has not performed a legal analysis and makes no representation as to the accuracy of the date listed.)
Filing date
Publication date
Application filed by Individual filed Critical Individual
Priority to US10/771,132 priority Critical patent/US20040193517A1/en
Publication of US20040193517A1 publication Critical patent/US20040193517A1/en
Assigned to ENTERPRISE BANK & TRUST COMPANY reassignment ENTERPRISE BANK & TRUST COMPANY ASSIGNMENT OF ASSIGNORS INTEREST (SEE DOCUMENT FOR DETAILS). Assignors: ABRAMS, JAMES D.
Assigned to ABRAMS, JAMES D. reassignment ABRAMS, JAMES D. RELEASE BY SECURED PARTY (SEE DOCUMENT FOR DETAILS). Assignors: ENTERPRISE BANK & TRUST COMPANY
Priority to US12/422,727 priority patent/US8103541B2/en
Abandoned legal-status Critical Current

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    • GPHYSICS
    • G06COMPUTING; CALCULATING OR COUNTING
    • G06QINFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q10/00Administration; Management
    • G06Q10/06Resources, workflows, human or project management; Enterprise or organisation planning; Enterprise or organisation modelling
    • GPHYSICS
    • G06COMPUTING; CALCULATING OR COUNTING
    • G06QINFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q30/00Commerce
    • G06Q30/02Marketing; Price estimation or determination; Fundraising
    • G06Q30/0201Market modelling; Market analysis; Collecting market data
    • G06Q30/0206Price or cost determination based on market factors
    • GPHYSICS
    • G06COMPUTING; CALCULATING OR COUNTING
    • G06QINFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q30/00Commerce
    • G06Q30/02Marketing; Price estimation or determination; Fundraising
    • G06Q30/0283Price estimation or determination
    • GPHYSICS
    • G06COMPUTING; CALCULATING OR COUNTING
    • G06QINFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q30/00Commerce
    • G06Q30/04Billing or invoicing

Definitions

  • the present invention relates generally to a device and method for pricing repair services and, more particularly, to a price list in which a potentially large number of repair services are grouped into a limited number of price categories, and to methods of using such a price list in bidding and communicating pricing information to customers.
  • repair services are rendered to customers on an as-needed basis, including repair services of the type which are commonly rendered at a customer's place of residence. Some examples of these services include those routinely performed by plumbers, electricians, HVAC technicians, appliance repair technicians, etc.
  • providers When determining the price to charge for these services, providers typically employ either one of the following two approaches: a time and materials approach; or a flat rate approach.
  • a service technician must keep track of the amount of time spent on a particular job, which is normally charged to the customer at an hourly rate, taking into account the starting and stopping times of each technician on the job, including perhaps for lunch and other breaks.
  • the service technician must also track the cost of all parts, equipment and other materials which are used in rendering the service (for purposes herein, replacement parts and/or new equipment installation may be considered part of a “service,” when applicable).
  • the technician in addition to tracking the materials used, the technician must also determine the cost of these materials, typically by referencing a detailed parts catalog.
  • the technician can determine a flat rate price for the needed service.
  • a comprehensive pricing catalog which includes “installed prices” for a wide variety of parts and equipment.
  • installed prices for a wide variety of parts and equipment.
  • such a pricing catalog may specify the installed price of a specific gas control valve for an HVAC system at $200, which represents the costs of the valve itself as well as the cost to install it.
  • these catalogs typically contain pricing information for numerous gas control valves, in addition to a wide variety of other parts and equipment, it is not uncommon for service technicians to make mistakes when trying to price a particular repair service.
  • the pricing catalogs themselves are typically quite expensive, and a separate catalog must typically be purchased for each field technician of a service organization on an annual or biannual basis, or whenever the catalogs are updated to reflect new parts, services and price changes.
  • a service technician need only identify the service category which includes the desired repair service, and then reference the price assigned to that particular service category.
  • the price list is initially provided to the customer before the customer's equipment is diagnosed, and the customer is informed that the cost of the repair service will be one of the prices associated with a listed service category.
  • the service technician as well as the customer can each reference the 35 price list to determine the price associated with the desired service. Due to the simplified format of the price list, and the ability of both the service technician and the customer to determine the price of a desired service therefrom, the risk of errors in using the price list is virtually non-existent.
  • This approach to pricing repair services also contributes to customer confidence in the service provider, as the customer preferably receives up front and straightforward pricing information, and is therefore less likely to expect errors or foul play in the quoted price, and should also be less concerned with the amount of time required for the technician to perform the desired service since this will not affect the price charged to the customer.
  • This inventive approach to pricing repair services can also facilitate comparison shopping, which is advantageous for the customer and thus may further contribute to the commercial success of the invention.
  • a method of determining pricing information corresponding to a service desired by a customer comprises the steps of referencing a price list having a plurality of service categories, where each service category has a different price associated therewith and at least one of the service categories includes a plurality of different services, identifying in the price list the service category which includes the desired service, and identifying in the price list the unique price associated with the identified service category, wherein the identified price represents the price of the desired service.
  • a method of communicating to a customer pricing information corresponding to a service desired by the customer comprises the steps of displaying to the customer a price list having a plurality of service categories, where each service category has a unique price associated therewith and at least one of the service categories includes a plurality of different services, thereby enabling the customer to determine the price of the desired service by identifying in the price list the unique price associated with the service category which includes the desired service.
  • a method of pricing a plurality of different services comprises the steps of grouping the different services into a plurality of service categories, and assigning a unique price to each of the service categories whereby the unique price assigned to a particular one of the service categories represents the price of each different service grouped into that particular one service category.
  • a list of pricing information for a plurality of different services includes a plurality of service categories, where each service category has a unique price associated therewith and at least one the service categories includes a plurality of different services, and where the price of a particular service included in the list is the unique price associated with the service category which includes that particular service.
  • FIG. 1 is an exemplary price list according to one 30 embodiment of the present invention.
  • FIG. 2 is a flow chart of a preferred method for communicating pricing information to customers using the price list of FIG. 1.
  • FIG. 3 illustrates a preferred approach to grouping different services into the same service category, and to assigning a unique price to that service category.
  • FIG. 4 illustrates an alternative approach to assigning unique prices to service categories with consideration of the frequency at which the different services in each category are rendered.
  • FIG. 1 An exemplary price list according to one preferred embodiment of the present invention is illustrated in FIG. 1 and is referred to generally by reference character 100 .
  • this particular price list 100 includes sample pricing information specific to residential HVAC services, it should be understood that the teachings of the present invention are applicable to a wide variety of services, as will be apparent.
  • the price list 100 includes several service categories A, B, C, D and E, and each of these service categories preferably includes several different service types.
  • category A includes services relating to the repair, replacement and/or installation of, among other things, a condenser coil still covered under factory warranty
  • category B includes services relating to the repair, replacement and/or installation of, among other things, factory burners
  • category E includes services relating to, among other things, the cleaning and/or adjustment of blowers, breakers., drains, etc.
  • a different or unique price is associated with each different service category. Specifically, category A is priced at $890, category B is priced at $477, category C is priced at $287, category D is priced at $189, and category E is priced at $99.
  • the price associated with a particular service category represents the price of each different service included in that particular service category.
  • the different services in any given service category are all priced the same.
  • a Customer in need of a blower adjustment will pay the same as a customer requiring a humidifier cleaning, because both of these services are grouped in the same category, namely, category E. Further, both customers would be charged, in this example, $99, as this is the price associated with category E.
  • the price list 100 preferably comprises only a single page.
  • a variety of services may be offered at the same price even though such services were previously offered at different prices, the grouping of the services into service categories and the assigning of uniform prices thereto can be performed in such a manner as to yield approximately the same overall revenue for the service provider, if desired, as further explained below.
  • This method preferably begins at step 200 when a service provider responds to a request for service by a customer.
  • the different services included in the price list 100 relate to HVAC services of the type commonly rendered at a customer's place of residence.
  • the service provider preferably responds to the customer request for service by dispatching a field technician to the customer residence.
  • the equipment in need of service is capable of being transported, it can be delivered to the service provider's facility for repair.
  • the price list 100 is displayed to the customer.
  • this step includes providing the customer with a hard copy of the price list.
  • the price list can be stored in a computer of the service provider and transmitted to a computer of the customer at an appropriate time. Regardless of how the price list is provided to the customer for review, it may be so provided before the field technician arrives at the customer residence or before equipment of the customer is delivered to a service provider facility for repair.
  • the customer is preferably informed that the price of the service desired is one of the prices set forth in the price list 100 .
  • the customer would be informed that the cost of the service desired will be $890, $477, $287, $189 or $99.
  • the service technician would then proceed to diagnose the equipment of the customer to determine the specific service desired by the customer.
  • the service technician as well as the customer/if desired, can reference the price list 100 to determine the price of the desired service. More specifically, the technician would first identify in the price list 100 the service category which includes the desired service. For example, if the desired service is to replace factory burners, the technician would first determine that this service is included in category B of the price list 100 .
  • the technician would then identify the unique price associated with that category B which, in this example, is $477.
  • the price to replace the factory burners in this example would be $477.
  • the customer is preferably informed of the price for the desired service and can then, if desired, independently reference the price list 100 to confirm the accuracy of the quoted price.
  • FIG. 3 A preferred method for pricing a plurality of different services in accordance with the present invention will now be described with reference to FIGS. 3 and 4.
  • a plurality of different service types 1 -N are preferably arranged in ascending order according to the individual prices at which such services were previously offered. These services can then be grouped into one or more service categories according to natural price breaks or as otherwise desired. For example, in FIG. 3, service types 5 1 , 2 , 3 , 4 each fall within the range of $70 to $100; and are each grouped into a category F.
  • a unique price can then be assigned to category F, preferably as a function of the average of the individual prices for service types 1 - 4 which, in this particular example, is $85.
  • a service provider can implement the teachings of the present invention without substantially affecting overall gross revenues.
  • a weighted average can be taken of the individual prices. An example of this is shown in FIG. 4, where service types 2 and 4 are rendered twice as frequently as service types 1 and 3 .
  • a weighted average price of $87 can be used as the unique price for category F, rather than the simple average price of $85 shown in FIG. 3.
  • An important aspect of the present invention is the elegantly simply format of the price list used both by service providers and their customers.
  • the number of service categories in any given price list must be limited, taking into account the variety of services and the individual prices of such services to be included in the price list.
  • the total number of service categories in any given price list is limited to no more than twenty-five.
  • the number of service categories is limited to no more than eight for price lists directed to residential plumbing services, and to no more than five for price lists directed to residential HVAC services.

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  • Business, Economics & Management (AREA)
  • Engineering & Computer Science (AREA)
  • Development Economics (AREA)
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  • Economics (AREA)
  • Entrepreneurship & Innovation (AREA)
  • Marketing (AREA)
  • General Physics & Mathematics (AREA)
  • General Business, Economics & Management (AREA)
  • Theoretical Computer Science (AREA)
  • Physics & Mathematics (AREA)
  • Game Theory and Decision Science (AREA)
  • Human Resources & Organizations (AREA)
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  • Quality & Reliability (AREA)
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  • Management, Administration, Business Operations System, And Electronic Commerce (AREA)
US10/771,132 2000-06-20 2004-02-03 Device and method for pricing repair services Abandoned US20040193517A1 (en)

Priority Applications (2)

Application Number Priority Date Filing Date Title
US10/771,132 US20040193517A1 (en) 2000-06-20 2004-02-03 Device and method for pricing repair services
US12/422,727 US8103541B2 (en) 2000-06-20 2009-04-13 Device and method for pricing repair services

Applications Claiming Priority (2)

Application Number Priority Date Filing Date Title
US59729000A 2000-06-20 2000-06-20
US10/771,132 US20040193517A1 (en) 2000-06-20 2004-02-03 Device and method for pricing repair services

Related Parent Applications (1)

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US59729000A Continuation 2000-06-20 2000-06-20

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US12/422,727 Continuation US8103541B2 (en) 2000-06-20 2009-04-13 Device and method for pricing repair services

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US20040193517A1 true US20040193517A1 (en) 2004-09-30

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US12/422,727 Expired - Lifetime US8103541B2 (en) 2000-06-20 2009-04-13 Device and method for pricing repair services

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AU (1) AU2001269746A1 (fr)
WO (1) WO2001098993A2 (fr)

Cited By (4)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
US7065764B1 (en) * 2001-07-20 2006-06-20 Netrendered, Inc. Dynamically allocated cluster system
US7636676B1 (en) 2004-08-05 2009-12-22 Wolery Alan K System and method for allowing a vehicle owner to obtain a vehicle repair estimate
US8533199B2 (en) 2005-12-14 2013-09-10 Unifi Scientific Advances, Inc Intelligent bookmarks and information management system based on the same
US20140266755A1 (en) * 2013-03-15 2014-09-18 Emerson Electric Co. Hvac system remote monitoring and diagnosis

Families Citing this family (2)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
US10339532B2 (en) * 2006-08-10 2019-07-02 Medcom Solutions, Inc. System and method for uniformly pricing items
US11887170B1 (en) 2018-07-11 2024-01-30 Medcom Solutions, Inc. Medical procedure charge restructuring tools and techniques

Citations (7)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
US4435769A (en) * 1980-03-15 1984-03-06 Mitsubishi Denki Kabushiki Kaisha Portable type automobile repair estimate issuing device
US5317503A (en) * 1992-03-27 1994-05-31 Isao Inoue Apparatus for calculating a repair cost of a damaged car
US5508977A (en) * 1994-06-16 1996-04-16 Simplex Time Recorder Company Service technician time recorder
US5920846A (en) * 1996-02-27 1999-07-06 Southwestern Bell Telephone Co. Method and system for processing a service request relating to installation, maintenance or repair of telecommunications services provided to a customer premises
US6125354A (en) * 1997-03-31 2000-09-26 Bellsouth Intellectual Property Corporation System and method for generating an invoice to rebill charges to the elements of an organization
US6219930B1 (en) * 1998-02-27 2001-04-24 Randall M. McPherson Apparatus and method of use for calculating an estimate of damaged surface repair cost
US20020035495A1 (en) * 2000-03-17 2002-03-21 Spira Mario Cosmas Method of providing maintenance services

Family Cites Families (2)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
US3709404A (en) * 1970-09-02 1973-01-09 E Dana Vending machine
US5320846A (en) * 1991-04-17 1994-06-14 New England Deaconess Hospital Corp. Method and composition for testing patients with metabolic depleting diseases

Patent Citations (7)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
US4435769A (en) * 1980-03-15 1984-03-06 Mitsubishi Denki Kabushiki Kaisha Portable type automobile repair estimate issuing device
US5317503A (en) * 1992-03-27 1994-05-31 Isao Inoue Apparatus for calculating a repair cost of a damaged car
US5508977A (en) * 1994-06-16 1996-04-16 Simplex Time Recorder Company Service technician time recorder
US5920846A (en) * 1996-02-27 1999-07-06 Southwestern Bell Telephone Co. Method and system for processing a service request relating to installation, maintenance or repair of telecommunications services provided to a customer premises
US6125354A (en) * 1997-03-31 2000-09-26 Bellsouth Intellectual Property Corporation System and method for generating an invoice to rebill charges to the elements of an organization
US6219930B1 (en) * 1998-02-27 2001-04-24 Randall M. McPherson Apparatus and method of use for calculating an estimate of damaged surface repair cost
US20020035495A1 (en) * 2000-03-17 2002-03-21 Spira Mario Cosmas Method of providing maintenance services

Cited By (10)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
US7065764B1 (en) * 2001-07-20 2006-06-20 Netrendered, Inc. Dynamically allocated cluster system
US7937705B1 (en) 2001-07-20 2011-05-03 I2Z Technology, Llc Dynamic job processing based on estimated completion time and specified tolerance time
US8544017B1 (en) 2001-07-20 2013-09-24 Searchlite Advances, Llc Dynamic job processing based on estimated completion time and specified tolerance time
US9122529B2 (en) 2001-07-20 2015-09-01 Searchlite Advances Llc Dynamic job processing based on estimated completion time and specified tolerance time
US9792155B2 (en) 2001-07-20 2017-10-17 Callidus Software Inc. Dynamic job processing based on estimated completion time and specified tolerance time
US7636676B1 (en) 2004-08-05 2009-12-22 Wolery Alan K System and method for allowing a vehicle owner to obtain a vehicle repair estimate
US7921041B1 (en) 2004-08-05 2011-04-05 Wolery Alan K System and method for allowing a vehicle owner to obtain a vehicle repair estimate
US8533199B2 (en) 2005-12-14 2013-09-10 Unifi Scientific Advances, Inc Intelligent bookmarks and information management system based on the same
US20140266755A1 (en) * 2013-03-15 2014-09-18 Emerson Electric Co. Hvac system remote monitoring and diagnosis
US9638436B2 (en) * 2013-03-15 2017-05-02 Emerson Electric Co. HVAC system remote monitoring and diagnosis

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Publication number Publication date
AU2001269746A1 (en) 2002-01-02
WO2001098993A2 (fr) 2001-12-27
US20090254493A1 (en) 2009-10-08
US8103541B2 (en) 2012-01-24

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AS Assignment

Owner name: ENTERPRISE BANK & TRUST COMPANY, MISSOURI

Free format text: ASSIGNMENT OF ASSIGNORS INTEREST;ASSIGNOR:ABRAMS, JAMES D.;REEL/FRAME:016280/0481

Effective date: 20050520

AS Assignment

Owner name: ABRAMS, JAMES D., FLORIDA

Free format text: RELEASE BY SECURED PARTY;ASSIGNOR:ENTERPRISE BANK & TRUST COMPANY;REEL/FRAME:019957/0127

Effective date: 20071004

STCB Information on status: application discontinuation

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