Study On The Retailer’s Pricing&Ordering Strategy For Seasonal Products

In modern business competition, if a corporation wants to handle the advantages of the competition, it must consider not only how to make more profit, but also how to cut more costs. It includes how to increase revenue and how to decrease cost. One problem is how to price a product to make the corporation profiting, the other is how to manage the inventory. Most companies consider and research the two problems. Corporations which produce and sell seasonal products have to consider more about the two problems. The seasonal products are connected to the time and season highly. Companies which produce seasonal products must decide if it’s right to build seasonal inventory in weak seasons to handle with the high needs in peak season. It also can keep flexible producing rate to change in weak and peak seasons. Companies which sell seasonal products need to decide how to pricing and ordering in the whole life-time of seasonal products, to make its profit most.Companies which produce seasonal products may face to some problems that it keeps too much inventories in weak season. It can use some strategies of price discount and business promotion to make the retailers order the products earlier. So the manufacturer can shift some inventories to the retailer. In the meantime, the retailers can order much more products when the manufacturer offers price discount, then it can sell these products to the customers in a reasonable price. It makes the retailers not only earn more profit, but also cut the purchasing cost.In this paper, on the basis of previous studies, the author focus on seasonal products, researches two problems:the first one is the retailers how to make its purchasing and pricing strategy when the manufacturer doesn’t offer a discount. The other is the retailers how to make its purchasing and pricing strategy when the manufacturer offers a discount in the weak season. The main contents are summarized as follows:1.The author focus on the special character of the seasonal products, researcher the retailers how to make its pricing and purchasing strategy when the seasonal products are not connected to the price and the manufacturer doesn’t offer price discount. And the author gets the best purchasing strategy of the retailer to make its profit most.2.On the basis of the past part, the author considers the retailers how to make its pricing and purchasing strategy when the seasonal products are connected to the price and the manufacturer doesn’t offer price discount. And finds the best purchasing strategy of the retailer to make its profit most. Then the author finds the best pricing and purchasing strategy in the condition of considering of each part of the life-time if the product.3.The third part content includes the retailers how to make its pricing and purchasing strategy when the manufacturer offers price discount in the weak season. The author considers two conditions:the first is the discount between manufacturer and retailer doesn’t refers to the discount between customers and retailer; the other is the discount between manufacturer and retailer does refers to the discount between customers and retailer. At last, the author finds the dynamic pricing theory of the supplier in the producing and retailing period of seasonal products.