Positive and negative trends

in annual sales
annual_sales

date purchase_id customer_id revenue avg_purchase_value

2/19/2019 209 3808 $305000 $80

1/2/2018 215 3808 $300000 $105

5/30/2017 300 3808 $200000 $180

9/15/2016 347 3808 $189000 $250

12/11/2016 872 5170 $100500 $500

2/8/2015 976 5170 $75000 $525

1/22/2014 787 8521 $30450 $555

11/30/2013 133 9574 $25900 $515

10/18/2012 800 4263 $25500 $350

2/15/2011 645 4263 $7500 $600

6/7/2011 950 4263 $10000 $610

 Average value of purchases

Avg value of purchases have decreased over time

600

300

2009
2019
 Total revenue

300, 000

150, 000

Total revenue is increasing due to overall business growth. Several new stores have opened
between 2017 and 2019. There may be other reasons for this upward trend, which we are still
investigating.
 Overall trends

Over time, revenue has increased while

average purchase value has decreased

Total revenue Average purchase value

 Raise prices of existing items Introduce more high-value items
Pros: Pros:
◦ Reduces low-value inventory ◦ Expands overall inventory
◦ Leans into luxury branding ◦ Leans into luxury branding

Cons: Cons:
◦ May alienate consumer base ◦ High production costs
Next steps: 1. Survey to determine customer tolerance for price increase

2. Analyze production costs

3. Choose and implement proposal