Unit of competency details

Element 

Performance Criteria 

Elements describe the essential outcomes of a unit of competency.

Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide.

1 Analyse market.

1.1 Identify workplace marketing and merchandising policies. 

1.2 Informally monitor client requirements  in order to evaluate market trends  and client needs.

1.3 Monitor workplace product and service range  to identify the demand for individual items and seasonal variations.

1.4 Identify opportunities to improve sales and services .

1.5 Research and identify potential new products and services , and evaluate supplier claims , and potential safety risks and benefits for clients.

1.6 Identify market competition .

2 Plan product and service range.

2.1 Assess the salon product and service range against workplace policies and procedures , market analysis, sales performance, environmental impact and existing workplace skills and knowledge.

2.2 Identify new techniques  for sourcing service range based on research conducted.

2.3 Identify workplace space requirements and optimum product or service mix according to the market analysis.

3 Maintain supplier relations.

3.1 Establish and maintain relationships with suppliers .

3.2 Identify new and existing suppliers and update them according to performance indicators  and workplace requirements.

4 Negotiate supply of goods.

4.1 Negotiate and implement arrangements with suppliers according to workplace policies and procedures.

4.2 Monitor stock and supplier records  for accuracy and legibility and take appropriate required remedial action.

4.3 Convey records of negotiations and agreements to appropriate personnel  within designated time frames.

4.4 Take immediate corrective action where potential or actual problems with supply are indicated.

4.5 Analyse, evaluate and amend product range and source of supply  according to management, staff and client feedback.

5 Monitor quality control.

5.1 Establish merchandise quality standards with suppliers according to legal requirements , minimal environmental impacts, client requirements and workplace policies and procedures.

5.2 Monitor merchandise quality  during supply and delivery process.

5.3 Record stock return figures and analyse against target figures.

6 Introduce product range.

6.1 Inform staff of new product ranges and services, and implement relevant staff training.

6.2 Demonstrate, promote and display new products and services to staff according to workplace merchandising plan.

7 Maximise profit.

7.1 Calculate or estimate individual product range contributions against budget targets.

7.2 Develop product range assessment checks and implement against budget targets.

7.3 Maximise profit margins in negotiation with suppliers.

7.4 Determine workplace pricing policies for services and products according to stated net profit margin in workplace merchandising plan.

7.5 Negotiate specifications for terms of trade .

8 Rationalise stock.

8.1 Update product range at regular intervals.

8.2 Identify product lines to be deleted and take action to minimise adverse effects on profit.

8.3 Consolidate stock as required to maximise sales potential.

This section describes the skills and knowledge required for this unit.

Required skills 

The following skills must be assessed as part of this unit:

• analytical skills to investigate products and services, including:

• evaluation and analysis of market trends and projections
• evaluation of supplier product claims
• evaluation and analysis of sales figures and investment levels
• evaluation and analysis of space requirements

• problem-solving skills to negotiate with suppliers
• planning and organising skills relevant to staff training
• literacy skills to research, source, read, comprehend and apply relevant information to evaluate products and equipment relevant to the range of services that may be offered by the business
• numeracy skills to cost and plan expenditure on new products and equipment
• technical skills to safely use new products and equipment.

Required knowledge 

The following knowledge must be assessed as part of this unit:

• workplace policies and procedures in regard to merchandising and marketing
• legislation and statutory requirements, including consumer law, in regard to merchandising and marketing
• policies and procedures in relation to investigation of products and services, including:

• industry codes of practice
• market needs
• range of products and services available
• methods for substantiating claims of product and equipment performance
• legislative requirements for the safe application of new technologies
• current and future stock levels
• existing and possible new suppliers
• salon quality control procedures and requirements
• salon environmental control procedures and requirements
• staff product training policies
• profit requirements.

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

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

Evidence of the following is essential:

• applying research skills to source, identify and evaluate new products, equipment and services, including:

• product performance
• organisational capability to use new technology
• staff training costs
• risks and benefits to clients
• risks and benefits to the business

• applying workplace policies and procedures in regard to:

• market analysis
• environmental impact controls
• planning
• procurement and rationalisation of product and service ranges

• maintaining supplier relations, including:

• negotiating supply of goods
• rationalising stock
• monitoring quality control

• communicating product range information to team members.

Context of and specific resources for assessment 

Assessment must ensure that:

• that competency is consistently demonstrated over a period of time and observed by the assessor or the technical expert working in partnership with the assessor as described in the Assessment Guidelines
• that competency is demonstrated in the workplace or a simulated workplace environment in a range of real workplace situations which may include client interruptions and involvement in other related activities normally expected in the workplace.

Assessment must ensure access to:

• the internet
• appropriate text and online resources
• information on professional and retail products and suppliers
• information regarding new products and equipment from a professional services range
• relevant workplace documentation including:

• manufacturer's equipment instructions
• product instructions
• manufacturer safety data sheets
• workplace policies and procedures manuals

• a range of clients with different product and service requirements.

For further guidance on the use of an appropriate simulated environment, refer to the Assessment Guidelines in this Training Package.

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 learners performing a range of tasks in an actual or simulated work environment, over sufficient time to demonstrate handling of a range of contingencies, including:

• performing market analysis
• negotiating supply of goods
• rationalising stock

• research reports, case studies, and written and oral questioning appropriate to the language and literacy level of the learner, to assess knowledge and understanding of investigating new products and services, including:

• market analysis
• product and equipment evaluation
• quality standards
• profit margins

• completion of workplace documentation relevant to investigating new products and services procedures
• third-party reports from technical experts
• completion of self-paced learning materials, including personal reflection and feedback from a trainer, coach or supervisor.

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

• SIBXPSM502A Manage treatment services and sales delivery.

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Marketing and merchandising policies  may include:

• current market position
• target markets
• quality control policies and procedures
• pricing, labelling and packaging requirements
• net profit margin.

Client requirements  may include:

• price
• quality
• range.

Market trends  may include:

• popularity of new and emerging technologies
• popularity of products with minimal environmental impact
• increased demand for some products and services
• decline of some services.

Product and service range  may include:

• new or existing stock
• new or existing services
• new techniques.

Opportunities to improve sales and services  may include:

• expansion of existing services
• introduction of new services
• increasing service capability through staff education and training
• equipment upgrade
• image update.

New products and services  may include:

• new generation hair reduction equipment, including:

• intense pulsed light systems
• laser systems

• skin care products and equipment
• nail care products and equipment
• massage services
• relaxation services.

Supplier claims  must include:

• substantiated research , such as :

• objective technical methods
• clinical testing
• sensory analysis by trained panels or by consumers
• consumer or market research
• published and peer reviewed outcomes.

Market competition  may include:

• salons
• day spas
• private operators.

Workplace policies and procedures  may include:

• pricing/profit margins
• product placement
• supplier payment
• client service
• market analysis
• planning, procurement and rationalisation of product and service ranges
• maintenance of supplier relations
• quality control
• environmental impact controls.

New techniques  may include:

• new equipment
• new products.

Relationships with suppliers  may include:

• face-to-face contact
• correspondence
• telephone or electronic contact.

Performance indicators  may include:

• price
• quality
• performance
• supply reliability
• product range.

Records  may include:

• hard copy
• electronic.

Appropriate personnel  may include:

• staff
• salon/store owner.

Source of supply  may include:

• local
• interstate
• overseas.

Legal requirements  may include:

• consumer law
• inclusion or exclusion of goods and services tax (GST).

Merchandise quality  may depend on:

• damage
• expiry date.

Terms of trade  may include:

• special buys
• payment terms
• promotional deals with suppliers
• partnership promotions.