Beauty Business Inventory and Retail Strategy 4

Question 1

What is the main advantage of a salon using retail software integrated with its POS?

Accepted Answer

Automatic real-time stock updates with each sale

Answer

Integrated POS updates inventory instantly as products sell.

Question 2

A client asks for a product the salon doesn't stock. What retail strategy captures this demand?

Accepted Answer

Offer special-order or drop-ship options

Answer

Special orders capture sales without holding extra inventory.

Question 3

Which metric shows the dollar value of unsold products currently on shelves?

Accepted Answer

Inventory on hand (carrying value)

Answer

Inventory on hand reflects the value of current unsold stock.

Question 4

How does bundling a shampoo and conditioner as a set primarily benefit retail strategy?

Accepted Answer

Increases average transaction value

Answer

Bundles raise the average amount each customer spends per visit.

Question 5

What is a 'loss leader' in beauty retail?

Accepted Answer

A low-margin item priced to attract buyers who then purchase more

Answer

A loss leader draws customers in with a low price to spur other purchases.

Beauty Business Practice Test