Lighting G Global Q Quality A Assurance new pricing for quality verification services takes effect October 16, 2019 Cli lick to edit it Master tit itle le style • CLICK TO EDIT MASTER TEXT STYLES INFOR ORMA MATIONA TIONAL L WEBINA INAR SEPTE EPTEMBE BER R 18, 18, 2019
Pr Prese senter nters Kimberly Thorpe (Schatz Ari Reeves (CLASP) Ana Luisa (Luli) Sosa (CLASP) Energy Research Center)
Agenda nda / Gui uidi ding ng Que uestions tions • What is Quality Verification and why is it valuable? • How do we currently price our services? • Why are we revising our pricing? • How will the new pricing work? • Key features • Examples • Price comparison • Any other questions you might have about pricing!
Lighting ghting Global bal Qua uali lity ty Verif rific ication ation • TEXT
Bene nefits its of f Quali uality ty Verif rific ication ation • Qualify your products for bulk procurements, RBF schemes, working capital facilities, and other financial incentives • Gain entry to markets where QV status and test reports can be used to demonstrate compliance with national standards • Send a signal to professional buyers and investors that your products are high quality • Have full confidence in the accuracy of test results • Benchmark your products against your competitors’ products • Get expert advice on how to improve your products
Cur urrent rent Pr Pricing cing for Qua uali lity ty Verif rific ication ation Se Services vices an and d Pr Product duct Test sting ing Testing Product QV Typical Testing Total QV as share Type Type Services Costs* Cost of Total Cost Pico $1,050 $6,000-$7,500 $7,050+ 15% QTM SHS $1,050 $7,000-$20,000 $8,050+ 13% Pico $550 $3,000-$3,750 $3,550+ 15% Renewal SHS $550 $3,500-10,000 $4,050+ 14% * Based on feedback from select companies.
Why hy Cha hange nge Pr Prici cing ng Now? w? • Demand is strong • 100 testing agreements in the past 12 months • Product complexity is higher, so labor cost per product is higher • 39 quality-verified SHS kits • 26 quality-verified product families • Costs are unfairly distributed across companies and products • Pricing remained unchanged for years, while our costs have increased • Industry has the capacity to cover more costs • Part of “mainstreaming” the off -grid solar sector • Donors will continue to cover 85%+ of our costs
New w Pr Prici cing, ng, Ef Effec ectiv tive e Oct ctober ober 16, 6, 20 2019 Important note: Product testing costs are not included in these fees and must be paid directly to the test lab that conducts the test. Full version of this document is available here: https://www.lightingglobal.org/wp-content/uploads/2019/09/QV_pricing_table_Oct-2019.pdf
New w Pr Prici cing, ng, Ef Effec ectiv tive e Oct ctober ober 16, 6, 20 2019 9 (co conti ntinued nued) Full version of this document is available here: https://www.lightingglobal.org/wp-content/uploads/2019/09/QV_pricing_table_Oct-2019.pdf
Benc nchma hmarking king An Anal alysis ysis • Compare your product against others tested in the past year
Key ey Fe Feat atures ures of f the he New w Pr Pricing cing New! No Change… • Price will vary with the …in our coordination of random complexity of the product. sampling. • Benchmarking analysis of your …in which products or product will be optional. components need to be tested or how. • $300 base fee will be waived for new customers (first product). …in our commitment to finding least-cost pathway to testing and quality verification.
Pr Prici cing ng Ex Exam ampl ples es # Description 1 Market entry testing (QTM) for a solar lantern 2 Renewal testing for a solar lantern 3 QTM for similar products 4 QTM for a Solar Home System (SHS) kit 5 QTM for a SHS kit with additional components 6 QTM for a family of products 7 Partial QTM retest
Ex Exam ample ple 1 1 – Pi Pico co So Solar ar Pr Product duct PRO FORMA INVOICE • QTM for a simple solar lantern Base fee for market entry testing $300 Per pico product $250 • Small price increase Sampling (per event) $500 Invoicing fee $50 TOTAL [new pricing] $1100 TOTAL [current pricing] $1050
Ex Exam ample ple 2 2 - Pi Pico co So Sola lar r Pr Product duct PRO FORMA INVOICE • Renewal testing for a solar lantern that has not changed Base fee for renewal and retesting $100 since QTM testing * Per pico product $250 • Current pricing covers only the Sampling (per event) $500 cost of sampling, not the QA team’s time Invoicing fee $50 TOTAL [new pricing] $900 TOTAL [current pricing] $550 * Pricing would be the same if the lantern had changed since it was last tested as long as the product only has one battery, one PV module and one type of light point.
Ex Exam ample ple 3 3 – Si Simi mila lar Pr Products ducts • QTM for two similar pico products PRO FORMA INVOICE • One product is fully tested; the other is subject to targeted testing Base fee for market entry testing $300 and refers to results from the first • All components ready to be Per pico product $250 *2 sampled from one location at the same time Sampling (per event) $500 • $750 savings by putting these two products together on one testing Invoice fee $50 agreement instead of testing them as completely separate products TOTAL [current pricing] $1050 TOTAL [new pricing] $1350
Ex Exam ample ple 4 4 – So Solar ar Home me Sy System em Kit PRO FORMA INVOICE • QTM for a simple SHS kit, which includes a battery, solar Base fee for market entry testing $300 module, and light source Per SHS kit $350 • All components ready to be sampled from one location at Sampling (per event) $500 the same time • Small price increase Invoice fee $50 TOTAL [new pricing] $1200 TOTAL [current pricing] $1050
Example ple 5 5 - So Solar ar Home me Sy System em Kit t with th ad additional ditional co compo ponents nents • QTM for a SHS kit that PRO FORMA INVOICE includes PV module, main Base fee for market entry testing $300 unit, lamp, torch, tubelight, radio, and TV Per SHS kit $350 • All components ready to be (PV module, main unit, and lamp) sampled from one location at Per unique additional component without a $60*2 the same time battery (tubelight and TV) • Higher price reflects the need Per unique additional component with a $100*2 to develop a test plan, review battery (torch and radio) test results, and prepare Sampling (per event) $500 Standardized Specification Invoicing fee $50 Sheet for a product with seven components TOTAL [current pricing] $1050 TOTAL [new pricing] $1520
Ex Exam ample ple 6 6 - Famil amily y of f Pr Products ducts PRO FORMA INVOICE • QTM for a family of products Base fee for market entry testing $300 • One full SHS kit is tested (PV module, battery, lamp, radio) Per SHS kit $350 20 W (PV module, main unit, lamp) • Another PV module, lamp, and 50 W Per unique additional component without a $60*2 control unit are also tested for battery (2 nd PV module, 2 nd lamp) inclusion in the family Per unique additional component with a $100*2 • All components are sampled battery (radio, 2 nd main unit) from one location at the same 50 W time Per new or revised product family $200 • Yields two listings on the Sampling (per event) $500 4000 mAh website: one for the fully tested Invoicing fee $50 SHS kit and one for the family TOTAL [current pricing] $1050 TOTAL [new pricing] $1720
Ex Exam ample ple 7 7 - Par Partial tial Retesting ting PRO FORMA INVOICE • Partial QTM to retest a Base fee for renewal and retesting $100 previously tested lamp Per unique additional component without a $60 • As in Example 2, current battery (retesting one light point) pricing covers only the cost of sampling, not the QA Sampling (per event) $500 team’s time Invoicing fee $50 TOTAL [current pricing] $550 TOTAL [new pricing] $710
Su Summ mmar ary y of f Pr Pricing cing Ex Exam amples ples # Description Current New 1 Market entry testing (QTM) for a solar lantern $1,050 $1,100 2 Renewal testing for a solar lantern $550 $900 3 QTM for similar products $1,050 $1,350 4 QTM for a Solar Home System (SHS) kit $1,050 $1,200 5 QTM for a SHS kit with additional components $1,050 $1,520 6 QTM for a family of products $1,050 $1,720 7 Partial QTM retest $550 $710
New w Pr Prici cing ng for Quali uality ty Verif rific ication ation Se Servi vices ces an and d Pr Product duct Testin ting Testing Product QV Typical Testing Total QV as share Type Type Services* Costs** Cost of Total Cost Pico $1,350 $6,000-$7,500 $7,350+ 18% QTM SHS $1,720 $7,000-$20,000 $8,720+ 20% Pico $900 $3,000-$3,750 $3,900+ 23% Renewal SHS $1,000 $3,500-10,000 $4,500+ 22% QV cost as share of total cost 13 – 15% with current pricing 18 – 23% with new pricing * Typical example; costs will vary. ** Based on feedback from select companies.
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