Inventory and Retail Strategy Flashcards

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

Answer: Automatic real-time stock updates with each sale

Integrated POS updates inventory instantly as products sell.

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

Answer: Offer special-order or drop-ship options

Special orders capture sales without holding extra inventory.

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

Answer: Inventory on hand (carrying value)

Inventory on hand reflects the value of current unsold stock.

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

Answer: Increases average transaction value

Bundles raise the average amount each customer spends per visit.

What is a 'loss leader' in beauty retail?

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

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

A salon owner wants staff to sell more retail. Which incentive aligns best?

Answer: Commission on retail sales

Retail commission directly motivates staff to recommend products.

Why is it important to display retail products at eye level in a salon?

Answer: Eye-level placement increases visibility and sales

Products at eye level get noticed and purchased more often.