Beauty Business Inventory and Retail Strategy 2 — Questions and Answers
Question 1: A salon's retail products are collecting dust while service revenue climbs. What is the FIRST step to fix slow-moving stock?
- Analyze sell-through rate by SKU (Correct answer)
- Order more of the same products
- Discontinue all retail sales
- Raise all retail prices
Correct answer: Analyze sell-through rate by SKU
Sell-through rate reveals which SKUs move slowly so decisions target real data.
Question 2: What does 'inventory turnover ratio' measure in a beauty retail business?
- How many times stock is sold and replaced in a period (Correct answer)
- Total number of employees
- Square footage of the store
- Average client visit length
Correct answer: How many times stock is sold and replaced in a period
Turnover ratio shows how often inventory is sold and restocked over time.
Question 3: A spa wants to reduce cash tied up in unsold products. Which strategy directly helps?
- Just-in-time reordering of fast movers (Correct answer)
- Bulk-buying every item for discounts
- Stocking every brand available
- Eliminating retail entirely
Correct answer: Just-in-time reordering of fast movers
Just-in-time reordering minimizes cash locked in slow inventory.
Question 4: Which product placement most increases impulse retail purchases at a salon checkout?
- Small add-on items near the register (Correct answer)
- Bulk shampoo in a back storeroom
- Products locked in a display case
- Items only listed on a website
Correct answer: Small add-on items near the register
Small, affordable items at checkout drive last-minute impulse buys.
Question 5: What is a key benefit of the stylist recommending the retail products they use during a service?
- Higher trust and conversion from demonstrated results (Correct answer)
- Lower product costs for the salon
- Reduced need for inventory tracking
- Elimination of retail taxes
Correct answer: Higher trust and conversion from demonstrated results
Clients trust products they saw work on their own hair or skin.
Question 6: A retailer notices frequent stockouts of a best-seller. What inventory metric should they set?
- A reorder point (par level) (Correct answer)
- A higher retail markup
- A longer return window
- A larger loyalty discount
Correct answer: A reorder point (par level)
A reorder point triggers restocking before a popular item runs out.
Question 7: Which practice best prevents shrinkage from theft or misuse of salon retail stock?
- Regular physical inventory counts and reconciliation (Correct answer)
- Displaying all stock openly with no records
- Letting staff take products freely
- Never counting until year-end
Correct answer: Regular physical inventory counts and reconciliation
Frequent counts reconciled against records catch losses early.
Beauty Business Inventory and Retail Strategy 2
A salon's retail products are collecting dust while service revenue climbs.
What is the FIRST step to fix slow-moving stock?