Hallstead Jewelers

Hallstead Jewelers - Based on my financial analysis of...

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Based on my financial analysis of Hallstead Jewelers, and the plans presented to me, I would advise them to follow Gretchen’s intuition and stop paying sales commissions to their sales clerks. While paying commissions may have helped drive the sales staff in the beginning of the company’s history, and is somewhat of a tradition as it was an idea passed down from their grandfather, the company’s name should now be asset enough to drive Hallstead Jewelers sales. Eliminating sales commissions would decrease the breakeven volume of sales by 1,084 units (sales tickets) and decrease the breakeven price of sales by $965,844 (Appendix 3). This change would have made the difference between making a profit or ending up with a loss during 2007. However, not only would I advise Hallstead Jewelers to eliminate sales commissions, I would also advise the sisters to take their savings from no longer paying sales commissions and invest the $200,000 grand in advertising that Michaela felt would benefit the larger store. Although the fixed cost of advertising would take away from the
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Hallstead Jewelers - Based on my financial analysis of...

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