Importance

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Abstract

The invention relates to a method of improving long-term business arrangements, preferably by enabling supplier(s) and purchaser(s) to share reductions in supplier's costs of production and/or purchaser's costs of using or selling the product. In some embodiments, the invention relates to a method of pricing a transaction wherein a product is supplied to a purchaser in multiple transactions, each transaction being priced on the basis of (1) the production cost of the product supplied in the transaction, and (2) a profit for the supplier wherein, as the costs of production decline in successive transactions, the supplier's profit is adjusted such that both the supplier and the purchaser benefit by sharing a portion of the reduction in production costs. In other embodiments, the supplier and the purchaser share a portion of a reduction in the cost of purchaser's use of the product.

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First Claim