Unit of competency Outline
Date retreived
22/07/2026 3:10 PM AWST
22/07/2026 3:10 PM AWST
Whilst all efforts are made to provide accurate and timely information from the relevant source/documentation, please be aware that the information supplied may not be the most current version. The accuracy of the detail has not been confirmed by the Department and therefore should not be relied upon without first confirming the contents.
Manage prices
Manage prices
Unit of competency
National Code
SIRXFIN006A
SIRXFIN006A
State Code
S6130
S6130
TGA Status
Deleted
Deleted
DTWD Status
Deleted
Deleted
State Implementation and Classification
Approved Date
01/02/2013
Field of Education
080505 - Marketing
Original Release Date
01/02/2013
Nominal Hours
50
Description
This unit describes the performance outcomes, skills and knowledge required to establish prices for products or services to ensure business targets are achieved according to identified market trends and business targets and agreed trading terms.
Notes
Elements and Performance Criteria
1. Confirm market research and forecasts.
- 1.1.Analyse market research and forecasts to ascertain supply of and demand for products and services.
- 1.2.Assess fundamentals affecting supply and demand in the marketplace.
- 1.3.Review historical data and current forecasts.
- 1.4.Determine opportunity for products or services to penetrate new markets.
2. Set price for goods or services.
- 2.1.Determine cost of providing products and services.
- 2.2.Determine prices and profit margins.
- 2.3.Apply relevant business policy and procedures to manage changes to prices.
- 2.4.Analyse margins and risk.
- 2.5.Review future market and business objectives and performance indicators.
- 2.6.Consider impact of government, taxation and financial market trends prior to setting price.
- 2.7.Set price.
3. Announce price for goods or services.
- 3.1.Assess mechanisms for communicating current and future prices.
- 3.2.Consider future price trends and information relevant to the specific market prior to announcing new price structures.
- 3.3.Determine best alternatives to communicate and secure prices.
4. Establish trading terms for the business.
- 4.1.Analyse profitability and parameters for shaping trading terms.
- 4.2.Analyse long term forecasted impact of trading terms established with individual customers.
- 4.3.Confirm processes for approving trading terms.
- 4.4.Establish supplier trading terms.
- 4.5.Finalise business customer trading terms.
- 4.6.Finalise direct customer trading terms.
- 4.7.Approve trading terms according to business policy and procedures.
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 in the performance criteria is detailed below.
Market research and forecasts may encompass:
sales
cash flow
net profit
payroll
staff expenditure
capital
maintenance costs
market trends.
Factors influencing prices and profit margins may include:
profit margin
volume of sales
market share
competitor activities
quality
presentation or merchandising of the product
associated sales
associated promotions
promotional tie-ins or co-location.
Business policy and procedures may relate to:
sale of goods and services
pricing of merchandise
communicating with customers and suppliers
setting trading terms.
Mechanisms for communicating may include:
manual or electronic catalogues
public notification
print and visual media
electronic media and means
verbal
annual reports
internal or external price reports
seasonal reports.
Trading terms may relate to:
pricing
delivery
partnerships and exclusivity
credit and payment terms.
Customers may include:
new and existing customers
internal or external customers
business customers or individuals
customers with a range of social, cultural and ethnic backgrounds and physical and mental abilities
customers with routine or special needs.
Market research and forecasts may encompass:
sales
cash flow
net profit
payroll
staff expenditure
capital
maintenance costs
market trends.
Factors influencing prices and profit margins may include:
profit margin
volume of sales
market share
competitor activities
quality
presentation or merchandising of the product
associated sales
associated promotions
promotional tie-ins or co-location.
Business policy and procedures may relate to:
sale of goods and services
pricing of merchandise
communicating with customers and suppliers
setting trading terms.
Mechanisms for communicating may include:
manual or electronic catalogues
public notification
print and visual media
electronic media and means
verbal
annual reports
internal or external price reports
seasonal reports.
Trading terms may relate to:
pricing
delivery
partnerships and exclusivity
credit and payment terms.
Customers may include:
new and existing customers
internal or external customers
business customers or individuals
customers with a range of social, cultural and ethnic backgrounds and physical and mental abilities
customers with routine or special needs.
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 Training Package.
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 (e.g. 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
third-party 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.
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 (e.g. 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
third-party 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.
No information
| State Code | National Code | Title | Type |
|---|---|---|---|
| J151 | SIR50112 | Diploma of Retail Management | Qualification |