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Follow the links below to find material targeted to the unit's elements, performance criteria, required skills and knowledge

Elements and Performance Criteria

1. Analyse market.
   • Identify business client groups and analyse their product and service preferences.
   • Review performance of product and service range to identify demand and seasonal variations.
   • Identify opportunities to improve product and service range.
   • Research and identify potential new products and services, evaluate supplier claims, benefits for clients and potential safety risks.
   • Identify market competition for specific products and services.
2. Plan product and service range.
   • Assess existing product and service range against business objectives, market analysis and sales performance.
   • Evaluate new techniques and equipment and assess workforce skills, knowledge and training required to introduce.
   • Identify space and equipment requirements for product display and service delivery.
   • Determine optimum product and service mix considering all factors and according to market analysis.
3. Negotiate supply and maximise profit.
   • Negotiate cost of supply to maximise profit margins.
   • Negotiate terms of trade with suppliers.
   • Convey complete and accurate records of negotiations and agreements to appropriate personnel.
   • Determine pricing policies for products and services according to nett profit margin required.
   • Develop product and service assessment checks and regularly calculate contributions against budgeted sales targets.
4. Introduce new products and services.
   • Update product and service range at regular intervals.
   • Inform staff of new product and service range, and implement relevant staff training.
   • Demonstrate and promote new products and services to staff.
   • Rationalise or delete non-performing products or services.
   • Consolidate stock to maximise sales and minimise adverse effects on profit.
5. Monitor quality.
   • Establish specifications for quality of supplier merchandise.
   • Monitor merchandise quality during supply and delivery process and rectify deficiencies.
   • Check stock return figures and analyse against target figures.
   • Evaluate product and service range regularly against staff and client feedback and amend as required.

Performance Evidence

Evidence of the ability to complete tasks outlined in elements and performance criteria of this unit in the context of the job role, and:

research four different client groups and their product and services preferences

review the performance of four different products

research and identify new products and suppliers for four product types suitable for above client preferences

introduce three new products:

negotiate cost of supply and terms of trade

develop and document pricing policies and lists for each new product introduced

demonstrate and promote products to staff and advise of supplier claims, benefits for clients and potential safety risks

over three supply periods, monitor the quality of supply and rectify deficiencies; monitor and record sales performance

research two new services:

evaluate against above client service preferences

assess organisation’s ability to introduce

calculate projected sales and profit.

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Knowledge Evidence

Demonstrated knowledge required to complete the tasks outlined in elements and performance criteria of this unit:

sources of information on personal services client groups and their product and service preferences

full details of the organisation’s product and service range

overview of competitors’ current products, services and price structure

sources and content of product and supplier information

types of supplier product claims, methods used to substantiate and how to evaluate

sources of information on new personal service techniques and equipment and business impacts of introducing these

layout and space requirements for product display and delivery of different personal services relevant to the business type

for personal services businesses and the organisation in particular:

business objectives

profit margins

sales targets for turnover and profit

methods used to consolidate stock and delete products while maintaining profitability

format and content of sales budgets, sales and stock reports and use in analysing product and service performance

format, content and use of product pricing policies and lists

principles of negotiation, stages in the negotiating process and different techniques that can be used

key components of contracts and agreements with suppliers:

nature of agreements and contracts

preferred supplier agreements

terms and obligations of parties

terms of trade

exclusion clauses

dispute resolution clauses

termination of contracts

methods to monitor quality of supply and identify and rectify systematic deficiencies.

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