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15000 Incandescent fixtures (50 & 100 watts bulbs) 2000 Fluorescent fixtures(25 watts bulbs) Timings 24 x 365 Hours per year Light source requirement - 24 x 365 Hours per year Standard Practice Followed Group re-lamping at 80% of the bulbs expected life Frequency of re-lamping: 8 times Incandescent bulbs & 1.4 times for Fluorescent Bulbs Average labor rate: $20 per hour Average of 5 minutes to change each bulb, and equipment rental at about $300/day, Estimated Cost of time lost in re-lamping 1,00,000 (Each Year)
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!!
18-watt CFL bulb provides comparable light to a 100-watt incandescent bulb
9-watt CFL bulb provides comparable light to a 25 & 50 -watt incandescent bulb
CFL Bulb lasts 10,000 hours, versus incandescent bulb about 1,000 hours The normal incandescent 100-watt bulb costs about 18 cents to manufacture and sells retail for about $1.20 The CFL 18-watt bulb can cost up to $3-$4 to manufacture The ten times life and 80% energy savings are important factors in determining the price for CFL Bulbs
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total WH
kwh
cost
1000
5000 2000
438000000
4380000000 438000000
438000
61320
nos
changing freq/yr 8
1.4
2800
50800
233.3333
4233.333 76 97280
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Calculation
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Retrofit Cost Calculation Quantity Cost/Unit Wall Fixture Overhead Fixture 3000 5000 30 Total Cost 90000 Effective Gross Margin Cost 40% 40% 126000 245000
35 175000
371000
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59.87198849
130.5943885
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Pricing Strategy
Factors Considered for Pricing Strategy Cost of Manufacturing CFL Bulb - $ 3 to 4 Total Savings achieved Total saving on 9 watt bulb $ 60 Total saving on 18 watt bulb - $ 130.5943885 Hence we can consider 15% discount on 9 watt bulb - $ 64 18 watt bulb - $ 134
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We can even price it at a lower slab as we are arriving at the final pricing strategy by cost of saving as the manufacturing cost is a small amount
Group-IV
Group-IV