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

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?

Accepted Answer

How many times stock is sold and replaced in a period

Answer

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?

Accepted Answer

Just-in-time reordering of fast movers

Answer

Just-in-time reordering minimizes cash locked in slow inventory.

Question 4

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

Accepted Answer

Small add-on items near the register

Answer

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?

Accepted Answer

Higher trust and conversion from demonstrated results

Answer

Clients trust products they saw work on their own hair or skin.

Beauty Business Practice Test