A method of selling articles of manufacture which utilizes an electronic communication
system to identify a plurality of articles of manufacture, from a plurality of
manufacturing entities, which are available for purchase by said plurality of potential
purchasers. The steps of the method include: Identifying pricing milestones in
each of (1) a manufacturing phase and (2) a distribution phase, which correspond
to an increase in commercial risk. Determining a separate price for each of said
pricing milestones to establish a range of prices for said selected ones of said
plurality of articles of manufacture, taking into account a change in said commercial
risk as said pricing milestones are experienced. Making conditional offers for
sale to potential purchasers at each of the pricing milestones, with the conditional
offers specifying at least a minimum number of articles which must be ordered in
aggregate before the conditional offer becomes binding upon a manufacturing entity.
Communicating with potential purchasers and aggregating commercial commitments
from potential purchasers for each pricing milestones and thereby selling articles
of manufacture. Such that each pricing milestone corresponds to a period of availability
in which costs of future supply chain activities or savings related to avoidance
of future supply chain activities are reflected in an offer price. The method may
also include the use of a trusted intermediary, which may use a virtual exchange.