Reference no: EM131351733

Donnelly's Jewelers, a family business your grandfather started in 1952, had annual sales last year of $900,560. Your parents, who purchased this business from your grandfather in 1981, have asked you to help them develop a strategy to improve sales. Since you plan to open a second Donnely's Jewelers store on graduation with your family's support, you want to use this opportunity to impress your parents with your business and retail-marketing skills. In reviewing the records of the store, you were surprised to find that a record had been kept of how many shoppers visited the store on a daily basis. For the most recent year, you computed that there were 15,000 visitors and that 2,803 of these made a purchase. You also have spent the last few weeks observing the salespeople (including your parents) shoppers and making a sales presentation, but they are quite weak and passive on closing a sale. You also have observed little effort is made to cross-sell merchandise. Your recommendation is to have a local professor who teaches a course in personal selling conduct a sales-training workshop. This two-day workshop would cost $5,000. After consulting with the professor, you both believe the training should produce an increase in average transaction size of $30 and an increase in the conversion rate of 5 percent. Based on the preceding information, show the impact on annual sales of the proposed training program.