CPS Business Management 2 — Questions and Answers
Question 1: A pet grooming salon wants to reduce no-shows. Which policy is most effective?
- Require a credit card on file with a cancellation fee (Correct answer)
- Call clients the morning of every appointment
- Offer a discount for clients who show up on time
- Post a no-show policy sign in the reception area
Correct answer: Require a credit card on file with a cancellation fee
Requiring a credit card with a stated cancellation fee creates a financial consequence that significantly reduces no-show and late-cancellation rates.
Question 2: Which pricing strategy involves charging more for premium services like hand-scissoring or spa treatments?
- Penetration pricing
- Cost-plus pricing
- Value-based tiered pricing (Correct answer)
- Competitive pricing
Correct answer: Value-based tiered pricing
Value-based tiered pricing sets prices based on the perceived value of premium services, allowing salons to capture higher margins for specialized offerings.
Question 3: When calculating the break-even point for a grooming salon, what two factors are compared?
- Total revenue vs. variable costs
- Fixed costs vs. contribution margin per service (Correct answer)
- Gross profit vs. net profit
- Labor costs vs. supply costs
Correct answer: Fixed costs vs. contribution margin per service
The break-even point is reached when total fixed costs are covered by the cumulative contribution margin (revenue minus variable costs) per service unit.
Question 4: A groomer wants to track which services generate the most revenue. Which tool best supports this?
- A daily appointment book
- Point-of-sale software with service reporting (Correct answer)
- A client comment card
- A manual ledger sorted by date
Correct answer: Point-of-sale software with service reporting
Point-of-sale software with reporting features can automatically categorize and summarize revenue by service type, enabling data-driven decisions.
Question 5: What is the primary purpose of an employee handbook in a grooming salon?
- To list all client contact information
- To document grooming breed standards
- To establish consistent policies and expectations for staff (Correct answer)
- To record daily appointment schedules
Correct answer: To establish consistent policies and expectations for staff
An employee handbook communicates workplace policies, conduct expectations, and procedures, helping ensure consistent and fair treatment of all staff.
Question 6: Which action best demonstrates upselling in a pet grooming context?
- Recommending a dental cleaning add-on during a basic bath appointment (Correct answer)
- Offering a second dog discount
- Suggesting a competitor's groomer for a breed you don't handle
- Posting grooming tips on social media
Correct answer: Recommending a dental cleaning add-on during a basic bath appointment
Upselling involves recommending a higher-value or add-on service to a client already booking a base service, increasing per-visit revenue.
Question 7: A grooming business owner receives a negative online review. What is the best initial response?
- Delete the review if possible
- Respond publicly with empathy and offer to resolve the issue (Correct answer)
- Ignore it since one review doesn't matter
- Post a counter-review from a friend
Correct answer: Respond publicly with empathy and offer to resolve the issue
Responding publicly with empathy shows professionalism and a commitment to client satisfaction, which can turn a negative experience into a trust-building opportunity.
CPS Business Management 2
A pet grooming salon wants to reduce no-shows.
Which policy is most effective?