Beauty Business Inventory and Retail Strategy 2

Question 1

A salon's retail products are collecting dust while service revenue climbs. What is the FIRST step to fix slow-moving stock?

Accepted Answer

Analyze sell-through rate by SKU

Answer

Order more of the same products

Answer

Discontinue all retail sales

Answer

Raise all retail prices

Question 2

What does 'inventory turnover ratio' measure in a beauty retail business?

Accepted Answer

How many times stock is sold and replaced in a period

Answer

Total number of employees

Answer

Square footage of the store

Answer

Average client visit length

Question 3

A spa wants to reduce cash tied up in unsold products. Which strategy directly helps?

Accepted Answer

Just-in-time reordering of fast movers

Answer

Bulk-buying every item for discounts

Answer

Stocking every brand available

Answer

Eliminating retail entirely

Question 4

Which product placement most increases impulse retail purchases at a salon checkout?

Accepted Answer

Small add-on items near the register

Answer

Bulk shampoo in a back storeroom

Answer

Products locked in a display case

Answer

Items only listed on a website

Question 5

What is a key benefit of the stylist recommending the retail products they use during a service?

Accepted Answer

Higher trust and conversion from demonstrated results

Answer

Lower product costs for the salon

Answer

Reduced need for inventory tracking

Answer

Elimination of retail taxes

Question 6

A retailer notices frequent stockouts of a best-seller. What inventory metric should they set?

Accepted Answer

A reorder point (par level)

Answer

A higher retail markup

Answer

A longer return window

Answer

A larger loyalty discount

Question 7

Which practice best prevents shrinkage from theft or misuse of salon retail stock?

Accepted Answer

Regular physical inventory counts and reconciliation

Answer

Displaying all stock openly with no records

Answer

Letting staff take products freely

Answer

Never counting until year-end