Lighting G Global Q Quality A Assurance new pricing for quality - - PowerPoint PPT Presentation

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Lighting G Global Q Quality A Assurance new pricing for quality - - PowerPoint PPT Presentation

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


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Cli lick to edit it Master tit itle le style

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Lighting G Global Q Quality A Assurance

new pricing for quality verification services takes effect October 16, 2019

INFOR ORMA MATIONA TIONAL L WEBINA INAR SEPTE EPTEMBE BER R 18, 18, 2019

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Pr Prese senter nters

Ari Reeves (CLASP) Ana Luisa (Luli) Sosa (CLASP) Kimberly Thorpe (Schatz Energy Research Center)

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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!
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Lighting ghting Global bal Qua uali lity ty Verif rific ication ation

  • TEXT
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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
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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 Type Product Type QV Services QTM Pico $1,050 SHS $1,050 Renewal Pico $550 SHS $550 Typical Testing Costs* Total Cost QV as share

  • f Total Cost

$6,000-$7,500 $7,050+ 15% $7,000-$20,000 $8,050+ 13% $3,000-$3,750 $3,550+ 15% $3,500-10,000 $4,050+ 14%

* Based on feedback from select companies.

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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
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New w Pr Prici cing, ng, Ef Effec ectiv tive e Oct ctober

  • ber 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

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New w Pr Prici cing, ng, Ef Effec ectiv tive e Oct ctober

  • ber 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

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Benc nchma hmarking king An Anal alysis ysis

  • Compare your product against others tested

in the past year

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Key ey Fe Feat atures ures of f the he New w Pr Pricing cing

New!

  • Price will vary with the

complexity of the product.

  • Benchmarking analysis of your

product will be optional.

  • $300 base fee will be waived for

new customers (first product).

No Change…

…in our coordination of random sampling. …in which products or components need to be tested or how. …in our commitment to finding least-cost pathway to testing and quality verification.

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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

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Ex Exam ample ple 1 1 – Pi Pico co So Solar ar Pr Product duct

  • QTM for a simple solar lantern
  • Small price increase

PRO FORMA INVOICE

Base fee for market entry testing $300 Per pico product $250 Sampling (per event) $500 Invoicing fee $50

TOTAL [new pricing] $1100 TOTAL [current pricing] $1050

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Ex Exam ample ple 2 2 - Pi Pico co So Sola lar r Pr Product duct

  • Renewal testing for a solar

lantern that has not changed since QTM testing*

  • Current pricing covers only the

cost of sampling, not the QA team’s time PRO FORMA INVOICE

Base fee for renewal and retesting $100 Per pico product $250 Sampling (per event) $500 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.

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Ex Exam ample ple 3 3 – Si Simi mila lar Pr Products ducts

  • QTM for two similar pico products
  • One product is fully tested; the
  • ther is subject to targeted testing

and refers to results from the first

  • All components ready to be

sampled from one location at the same time

  • $750 savings by putting these two

products together on one testing agreement instead of testing them as completely separate products PRO FORMA INVOICE

Base fee for market entry testing $300 Per pico product $250 *2 Sampling (per event) $500 Invoice fee $50

TOTAL [new pricing] $1350 TOTAL [current pricing] $1050

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Ex Exam ample ple 4 4 – So Solar ar Home me Sy System em Kit

  • QTM for a simple SHS kit,

which includes a battery, solar module, and light source

  • All components ready to be

sampled from one location at the same time

  • Small price increase

PRO FORMA INVOICE

Base fee for market entry testing $300 Per SHS kit $350 Sampling (per event) $500 Invoice fee $50

TOTAL [new pricing] $1200 TOTAL [current pricing] $1050

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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

includes PV module, main unit, lamp, torch, tubelight, radio, and TV

  • All components ready to be

sampled from one location at the same time

  • Higher price reflects the need

to develop a test plan, review test results, and prepare Standardized Specification Sheet for a product with seven components

PRO FORMA INVOICE

Base fee for market entry testing $300 Per SHS kit (PV module, main unit, and lamp) $350 Per unique additional component without a battery (tubelight and TV) $60*2 Per unique additional component with a battery (torch and radio) $100*2 Sampling (per event) $500 Invoicing fee $50

TOTAL [new pricing] $1520 TOTAL [current pricing] $1050

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Ex Exam ample ple 6 6 - Famil amily y of f Pr Products ducts

  • QTM for a family of products
  • One full SHS kit is tested (PV

module, battery, lamp, radio)

  • Another PV module, lamp, and

control unit are also tested for inclusion in the family

  • All components are sampled

from one location at the same time

  • Yields two listings on the

website: one for the fully tested SHS kit and one for the family

PRO FORMA INVOICE

Base fee for market entry testing $300 Per SHS kit (PV module, main unit, lamp) $350 Per unique additional component without a battery (2nd PV module, 2nd lamp) $60*2 Per unique additional component with a battery (radio, 2nd main unit) $100*2 Per new or revised product family $200 Sampling (per event) $500 Invoicing fee $50

TOTAL [new pricing] $1720 TOTAL [current pricing] $1050

4000 mAh

20 W 50 W 50 W

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Ex Exam ample ple 7 7 - Par Partial tial Retesting ting

  • Partial QTM to retest a

previously tested lamp

  • As in Example 2, current

pricing covers only the cost

  • f sampling, not the QA

team’s time PRO FORMA INVOICE

Base fee for renewal and retesting $100 Per unique additional component without a battery (retesting one light point) $60 Sampling (per event) $500 Invoicing fee $50

TOTAL [new pricing] $710 TOTAL [current pricing] $550

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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

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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 Type Product Type QV Services* QTM Pico $1,350 SHS $1,720 Renewal Pico $900 SHS $1,000 Typical Testing Costs** Total Cost QV as share

  • f Total Cost

$6,000-$7,500 $7,350+ 18% $7,000-$20,000 $8,720+ 20% $3,000-$3,750 $3,900+ 23% $3,500-10,000 $4,500+ 22%

* Typical example; costs will vary. ** Based on feedback from select companies.

QV cost as share of total cost 13–15% with current pricing 18–23% with new pricing

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Key ey Fe Feat atures ures of f the he New w Pr Pricing cing

New!

  • Price will vary with the

complexity of the product.

  • Benchmarking analysis of your

product will be optional.

  • $300 base fee will be waived for

new customers (first product).

No Change…

…in our coordination of random sampling. …in which products or components need to be tested or how. …in our commitment to finding least-cost pathway to testing and quality verification.

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An Any qu questions? tions?

Ari Reeves (CLASP) Ana Luisa (Luli) Sosa (CLASP) Kimberly Thorpe (Schatz Energy Research Center)

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BACKUP SLIDES FOLLOW

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