This section describes the essential skills and knowledge and their level required for this unit

Required skills

interpersonal skills to

communicate pricing internally and externally through clear and direct communication

share information

use language and concepts appropriate to cultural differences

use and interpret nonverbal communication

negotiation skills to establish supplier trading terms

literacy skills to

interpret business policy and procedures

organise and analyse information from written and electronic sources

generate reports

numeracy skills to

analyse numerical and mathematical information on pricing and market growth

establish prices for products and services and maintain margins

response to competitor activities

Required knowledge

business policy and procedures in regard to

job role and responsibilities

seeking approval for effective trading terms

finalising trading terms and setting prices

communicating prices

factors affecting supply and demand for a range of products and services including

impact of taxation and other regulatory controls affecting a market

price trends

overall supply chain management issues and trends

information on prices and market growth

sourcing historical data

prioritising work schedule

information sources on product and supply arrangements for customers

relevant legislation relating to trade

The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria required skills and knowledge the range statement and the Assessment Guidelines for this TrainingPackage

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the following is essential

establishes trading terms to meet business outcomes

maintains business relationships and profit margins over time

communicates prices in the most effective and efficient manner

identifies and responds to impact of forecasts and research on prices

ability to anticipate and respond to competitor activities and pricing policies

ability to manage prices for a range of products or services within a customer geographic or market area eg trading terms communication to customers and businesses risk analysis margin identification

maintains sustainable business targets in consideration of margins market share customer relationships and trading terms

Context of and specific resources for assessment

Assessment must ensure access to

a real or simulated work environment

business or sample policy and procedures in regard to price management

an accounting system

budgetary information

relevant documentation such as

financial and market reports

business policy and procedures manuals

a variable market

Methods of assessment

A range of assessment methods should be used to assess practical skills and knowledge The following examples are appropriate for this unit

observation of performance in the workplace

thirdparty reports from a supervisor

a case study

written or verbal questioning to assess knowledge and understanding

Guidance information for assessment

Holistic assessment with other units relevant to the industry sector workplace and job role is recommended

Market research and forecasts may encompass:

Factors influencing prices and profit margins may include:

Business policy and procedures may relate to:

Mechanisms for communicating may include:

Trading terms may relate to:

Customers may include: