“Pricing policy of the Rahimafrooz Renewable energy ltd.”

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Transcript of “Pricing policy of the Rahimafrooz Renewable energy ltd.”

A Report onPricing policy of the Rahimafrooz Renewable energy ltd.

Submitted By:Dipock Mondal ID:BBA070360590Major: Finance

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Table of ContentsCover page Title page Letter of Transmittal Letter of Endorsement by the Supervisor Acknowledgment Executive Summary Table of Contents 1.0 Organizations overview 1.1 Rahimafrooz overview. 1.2 Rahimafrooz Renewable Energy Ltd Overview 2.0 Literature review 3.0 Introduction of the study 3.1 Rationale of the study 3.2 Statement of the problems 3.3 Scope of the study 3.4 Objective of the study 3.5 Limitation of the study 4.0 Methodology of the Study 5.0 Analysis and Interpretation of the Data 5.1 Package 20Wp 5.2 Package 40Wp 5.3 Package 45Wp 5.4 Package 50Wp 5.5 Package 65Wp 5.6 Package 75WP 5.7 Package 85Wp 5.8 Solar Pump2

II III IV V VI VIII

1 2 3 5 12 13 13 14 14 15 16 18 19 21 22 24 26 27 29 31

5.9 Bangladesh power Development project 5.10 Evaluation 6.0 Findings of the Study 7.0 Suggestions 8.0 Conclusion Bibliography

34 37 40 42 45 47

CHAPTER 1

Organizations overview

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Organizations overview1.1 Rahimafrooz overview:A man of strict religious values, yet a believer in progressive dynamism, and a dreamer who thought nothing is impossible Late A C Abdur Rahim overcame numerous challenges and obstacles to become one of the most accomplished entrepreneurs of this country. Born on the 20th of January 1915, he lost both his parents by the time he was seven years of age. Deprived of formal schooling and a typically comfortable childhood, he grew up as a man with strong determination, hardworking diligence, and humane compassion. By the early 1940s, Mr. Rahim started small scale commercial trading on his own. He moved to Chittagong in 1947 and stared afresh with very little capital in hand, but with a whole world of courage and faith. In 1950, he established the small trading concern dealing in various items. This proprietary business was formally incorporated on April 15, 1954 as Rahimafrooz & Co. Till date; Rahimafrooz Group commemorates this as its Foundation Day. Over the decades, Rahimafrooz has grown in size, scale, and diversity. The Group today has Eight Operating Companies (SBUs), a few other business ventures, and a non-profit social enterprise. As of 2009, the Group currently employs more than two thousand people directly and a further twenty thousand indirectly as suppliers contractors, dealers and retailers. Rahimafrooz operates in four broad segments Storage Power, Automotive and Electronics Division, Energy and Retail.

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Rahimafrooz has strengthened our market leadership at home while reaching out to international markets. Ranging from automotive after market products, energy and power solutions, to a world class retail chain the team at Rahimafrooz is committed to ensuring the best in quality standards and living the Groups five core values Integrity, Excellence, Customer Delight, Innovation and Inspiring People. Rahimafrooz has been a partner in the development journey of this nation for more than fiftyfive years now. We set ourselves the highest standards in responsible corporate behavior and Rahimafrooz passion for success is aligned with the development of the country journey of Bangladesh. We are committed to playing a leading role in driving growth, prosperity, ethical values and social responsibility. We continue to serve their customers through unparalleled quality excellence and service superiority. Their business success has been complemented by our commitment to the environment, society and community. At Rahimafrooz, We are enriching lives with your trust

Companies: Rahimafrooz (Bangladesh) Ltd. Rahimafrooz Accumulators Ltd. Rahimafrooz Batteries Ltd. Rahimafrooz Globatt Ltd. Rahimafrooz Distribution Ltd. Rahimafrooz CNG Ltd. Rahimafrooz Renewable Energy Ltd. Rahimafrooz Energy Services Ltd. Rahimafrooz Superstores Ltd.

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1.2 Rahimafrooz Renewable Energy Ltd overview:Transforming the lives of people and lighting up different corners of the country, Rahimafrooz Renewable Energy Ltd. (RREL) has been providing Solar Energy solutions for households, agriculture, healthcare, education, telecommunication, rural streets and marketplaces, as well as government and private institutions. To date, RREL has lightened up more than 100,000 rural homes in Bangladesh and the Company is endeavoring to do much more in the future. RREL is also the pioneer in providing solar-hybrid solutions for Telecom Operators BTS towers and solar powered irrigation systems in Bangladesh. The abundance, inexhaustibility and non-polluting nature of solar energy has made it a popular alternative to conventional energy sources, which are rapidly getting exhausted. So far only a small portion of solar energy is being harnessed for use in solar lighting, telecommunications, solar water heating and solar powered irrigation. Working closely with Bangladesh Governments agencies, NGOs, donor and partner organizations and international agencies, RREL offers a full range of solar solutions including home lighting, street lighting, water heating systems, Photo Voltaic (PV) centralized systems, irrigation systems, vaccine refrigeration, support for computer and other electronic systems and a number of other solutions.

Bangladesh Carbon:

In 2009, Rahimafrooz Renewable Energy Ltd. joined hands with Carbon Planet, Australia and launched Bangladesh Carbon a CDM based Consultancy and Carbon Trading service. Bangladesh Carbon is an initiative of RREL to develop, implement and commercialize projects under Clean Development Mechanism (CDM) guidelines of UNFCC Kyoto Protocol, which will not only reduce Carbon Emissions but also earn foreign exchange for our economy.

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CHAPTER 2Literature review

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Literature review:One of the most difficult, yet important, issues we must decide as an entrepreneur is how much to charge for our product or service. While there is no one single right way to determine product pricing strategy, fortunately there are some guidelines that will help we with our decision. Before we get to the actual pricing models, here are some of the factors that we need to consider: Positioning - How are we positioning our product in the market? Is pricing going to be a key part of that positioning? If we're running a discount store, we're always going to be trying to keep our prices as low as possible as (or at least lower than our competitors). On the other hand, if we're positioning our product as an exclusive luxury product, a price that's too low may actually hurt our image. The pricing has to be consistent with the positioning. People really do hold strongly to the idea that we get what you pay for. Demand Curve - How will our pricing affect demand? We're going to have to do some basic market research to find this out, even if it's informal. Get 10 people to answer a simple questionnaire, asking them, "Would you buy this product/service at X price? Y price? Z price?" For a larger venture, we'll want to do something more formal, of course -- perhaps hire a market research firm. But even a sole practitioner can chart a basic curve that says that at X price, X' percentage will buy, at Y price, Y will buy, and at Z price Z will buy. Cost - Calculate the fixed and variable costs associated with our product or service. How much is the "cost of goods", i.e., a cost associated with each item sold or service delivered, and how much is "fixed overhead", i.e., it doesn't change unless our company changes dramatically in size? Remember that our gross margin (price minus cost of goods) has to amply cover our fixed

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overhead in order for us to turn a profit. Many entrepreneurs under-estimate this and it gets them into trouble. Environmental factors - Are there any legal or other constraints on pricing? For example, in some cities, towing fees from auto accidents are set at a fixed price by law. Or for doctors, insurance companies and Medicare will only reimburse a certain price. Also, what possible actions might your competitors take? Will too low a price from you trigger a price war? Find out what external factors may affect our pricing The next step is to determine our pricing objectives. What are we trying to accomplish with our pricing? Short-term profit maximization - While this sounds great, it may not actually be the optimal approach for long-term profits. This approach is common in companies that are bootstrapping, as cash flow is the overriding consideration. It's also common among smaller companies hoping to attract venture funding by demonstrating profitability as soon as possible. Short-term revenue maximization - This approach seeks to maximize long-term profits by increasing market share and lowering costs through economy of scale. For a well-funded company, or a newly public company, revenues are considered more important than profits in building investor confidence. Higher revenues at a slim profit, or even a loss, show that the company is building market share and will likely reach profitability. Amazon.com, for example, posted record-breaking revenues for several years before ever showing a profit, and its market capitalization reflected the high investor confidence those revenues generated. Maximize quantity - There are a couple of possible reasons to choose the strategy. It may be to focus on reducing long-term costs by achieving economies of scale. This approach might be used by a company well-funded by its founders and other "close" investors. Or it may be to maximize market penetration - particularly appropriate when you expect to have a lot repeat customers. The plan may be to increase profits by reducing costs, or to up sell existing customers on higherprofit products down the road.

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Maximize profit margin - This strategy is most appropriate when the number of sales is either expected to be very low or sporadic and unpredictable. Examples include custom jewelry, art, hand-made automobiles and other luxury items. Differentiation - At one extreme, being the low-cost leader is a form of differentiation from the competition. At the other end, a high price signals high quality and/or a high level of service. Some people really do order lobster just because it's the most expensive thing on the menu. Survival - In certain situations, such as a price war, market decline or market saturation, you must temporarily set a price that will cover costs and allow you to continue operations. Now that we have the information we need and are clear about what we're trying to achieve, we're ready to take a look at specific pricing methods to help us arrive at our actual numbers.

As we said earlier, there is no "one right way" to calculate your pricing. Once weve considered the various factors involved and determined our objectives for our pricing strategy, now we need some way to crunch the actual numbers. Here are four ways to calculate prices: Cost-plus pricing - Set the price at our production cost, including both cost of goods and fixed costs at our current volume, plus a certain profit margin. For example, our widgets cost $20 in raw materials and production costs, and at current sales volume (or anticipated initial sales volume), our fixed costs come to $30 per unit. Our total cost is $50 per unit. You decide that you want to operate at a 20% markup, so we add $10 (20% x $50) to the cost and come up with a price of $60 per unit. So long as we have our costs calculated correctly and have accurately predicted our sales volume, we will always be operating at a profit.

Target return pricing - Set our price to achieve a target return-on-investment (ROI). For example, let's use the same situation as above, and assume that we have $10,000 invested in the company. Our expected sales volume is 1,000 units in the first year. We want to recoup all our investment in the first year, so we need to make $10,000 profit on 1,000 units, or $10 profit per unit, giving us again a price of $60 per unit. Value-based pricing - Price our product based on the value it creates for the customer. This is usually the most profitable form of pricing, if we can achieve it. The most extreme variation on this is "pay for performance" pricing for services, in which we charge on a variable scale 10

according to the results you achieve. Let's say that our widget above saves the typical customer $1,000 a year in, say, energy costs. In that case, $60 seems like a bargain - maybe even too cheap. If our product reliably produced that kind of cost savings, we could easily charge $200, $300 or more for it, and customers would gladly pay it, since they would get their money back in a matter of months. However, there is one more major factor that must be considered. Psychological pricing - Ultimately, we must take into consideration the consumer's perception of our price, figuring things like: Positioning - If we want to be the "low-cost leader", we must be priced lower than our competition. If you want to signal high quality, you should probably be priced higher than most of our competition. Popular price points - There are certain "price points" (specific prices) at which people become much more willing to buy a certain type of product. For example, "under $100" is a popular price point. "Enough under $20 to be under $20 with sales tax" is another popular price point, because it's "one bill" that people commonly carry. Meals under $5 are still a popular price point, as are entree or snack items under $1 (notice how many fast-food places have a $0.99 "value menu"). Dropping our price to a popular price point might mean a lower margin, but more than enough increase in sales to offset it.

Fair pricing - Sometimes it simply doesn't matter what the value of the product is, even if we don't have any direct competition. There is simply a limit to what consumers perceive as "fair". If it's obvious that our product only cost $20 to manufacture, even if it delivered $10,000 in value, you'd have a hard time charging two or three thousand dollars for it -- people would just feel like they were being gouged. A little market testing will help we determine the maximum price consumers will perceive as fair. Now, how do we combine all of these calculations to come up with a price? Here are some basic guidelines:

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Our price must be enough higher than costs to cover reasonable variations in sales volume. If our sales forecast is inaccurate, how far off can we be and still be profitable? Ideally, we want to be able to be off by a factor of two or more (our sales are half of our forecast) and still be profitable. We have to make a living. Have we figured salary for our self in our costs? If not, our profit has to be enough for us to live on and still have money to reinvest in the company. Our price should almost never be lower than your costs or higher than what most consumers consider "fair". This may seem obvious, but many entrepreneurs seem to miss this simple concept, either by miscalculating costs or by inadequate market research to determine fair pricing. Simply put, if people won't readily pay enough more than we cost to make we a fair profit, we need to reconsider our business model entirely. How can we cut our costs substantially? Or change our product positioning to justify higher pricing? Pricing is a tricky business. Our certainly entitled to make a fair profit on our product, and even a substantial one if you create value for our customers. But remember, something is ultimately worth only what someone is willing to pay for it.

A solar energy incentive package(Bulletin of the Atomic Scientists) Incentives at both the federal and state level are needed if want to gain the acceptance of solar space heating and cooling systems in the building industry in the United States, given the organizational barriers in the industry. And even when the operating costs of a solar space conditioning system become less than that for the conventional systems now being used in this country, a main obstacle to the acceptance of a solar system is its initial cost compared to that for a conventional gas, oil or electric system, An incentive is needed to overcome this economic barrier. A federal incentive package designed to improve the economics of solar space conditioning could include tow primary incentives: tax credits and low interest loans. A 5 percent loan for 20 years would yield a 25 percent equivalent first-cost reduction compared to a typical 9 percent mortgage loan for the same 20-year term. Depending on the alternative fuel and location, the monthly payments on the loan plus the monthly cost of the additional fuel could be less than for

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the monthly fuel costs without the solar system. Establishing a low interest loan rate tied to federal money could help make the level of incentive remain relatively constant. In addition, a direct tax credit of 25 percent could be given initially to provide additional inducement for solar energy. The use of this combination of this combination of incentives would provide a 50 percent to 25 percent. After 1985, the low interest rate could be gradually raised until the entire incentives were phased out by 1990. Two additional policy actions to improve the economics of solar space conditioning and to reduce the firs-cost barrier are necessary at the state level. States could provide a property tax abatement which would remove the added value of solar space conditioning from the assessed value of the property. This would provide about a 10 percent reduction in the annualized cost of solar system and would demonstrate tangible state support for solar energy. In addition, state regulatory bodies could help establish the option of utility ownership of solar space conditioning equipment. Allowing consumers the choice between buying the solar space conditioning equipment from a utility may help keep solar costs lo by promoting competition between installers who are contracted by the utility ad installers who are not. Utility ownership will help mitigate the first-cost barrier. Finally, both federal and state governments can expand the demonstration program and establish implementation Centers. Feasibility studies for demonstration projects should include a life-cycle cost analysis, including a cost reduction at the level of the incentive prevailing at the time of analysis. Incentives, such as the one presented here, could stimulated presented here, could stimulate savings in fossil fuel use and boost the impact of solar energy on the U.S economy A.S.H

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CHAPTER 3Introduction of the study

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3.1 Rationale of the study As a student I got knowledge and practically learn how to determine price of a product. I knew about how to accumulate the product cost in real life. I also knew about how market effect on price. This research enriched my knowledge about the Renewable Energy of Bangladesh which ultimately added value to my career. This study had opened an opportunity for the student of business Administration for future research. The study will also enrich the store of information of University library as it contained huge information about shipbuilding industry of Bangladesh. The government will be known about the pricing policy of the Renewable Energy industry. The entrepreneur will get an idea about the industry and investment opportunity.

So, ultimately this research work will be contributing to the improvement of the investment climate of the Renewable Energy industry of Bangladesh as a whole.

3.2 Statement of the problems

What is the Pricing policy of Rahimafrooz Renewable Energy Ltd? Which are the factors that influence Price? 15

How to determine the price of a product?

3.3 Scope of the study: By conducting this research, we capable set price of a product. Know about how change the price over the period. In market based price how company follow the competitor. It gives an idea about the Renewable Energy industry in Bangladesh. It has also provided an idea about the impediments of the Renewable Energy for growth. We have a clear idea about pricing policy of Rahimafrooz Renewable Energy ltd.

3.4 Objectives of the studyResearch objectives are classified into two types. One is broad objectives and another one is specific objective.

Broad objective 1. To identify Pricing policy of Rahimafrooz Renewable Energy ltd.

2. To identify the cost of the product.

Specific objectives: 1. To know about what factors influence the price of renewable energy. 2. To know about market of renewable energy.

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3. To know about renewable energy depends on which supplementary product. 4. To know about impediment of renewable energy. 5. To know how renewable energy effect on environment.

3.5 Limitation of the studyThere were some limitations which can not be denied. The access to all information had not been allowed by the companies because of security purpose. Price is very sensitive issue for the company. Duration had been very short for accomplishing the study, such research needs more time. Another very big problem for this research corporate employee are very busy so they have not enough time to contribute my research work.

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CHAPTER 4Methodology of the Study

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MethodologyThe study conducted by using Interview, survey Method. It will be an exploratory research. Primary sources: In my report I used primary data which were collected through interviews, survey and contact with RREL personality. Interviews administered by formal and informal discussion. No structured questionnaire used. Information regarding office activities of the RREL will collect through consulting RREL records and discussion with RREL personnel.

Secondary sources: In my report I used secondary on a large scale. For secondary data collection I went annual report of RREL, files & folders, different publications of RREL, articles of the newspaper and periodicals, records of financial transactions, websites of RREL and different others webpages.

For the analysis part, Pie Chart, Bar-diagram, Rader-graph, Doughnut-Diagram will be used. Microsoft Excel used for data calculation and analysis. Pie charts used for showing response in percentage (%), Bar- Diagrams used for displaying the exact number of responses. Rader-Graphs used for identifying significance of problems and relationships whose highest value was 5 and the more the mean value the more significant the problems and relationships. Doughnuts will used for showing the data graphically.

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CHAPTER 5Analysis and Interpretation of the Data

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SOLAR HHOME LIGHTING SYSTEM Rahimafrooz renewable energy ltd Solar home lighting systems are ideal sources for providing indoor illumination or remote areas and un-electrified villages. The Solar home lighting system essentially consists of the solar module, suitable module mounting structure, battery, battery box, charge-controller, cables and switches etc. All light assemblies have built-in high efficiency and high frequency DC to AC inverter circuits for suitable to run CFL an FLT lamps. The Indoor lighting systems would also come with a provision to power a 12V DC table fan or black & white Portable TV as option. The lighting system is designed to operate 3 to 4 hours a day. Home light is a DC operated wall mountable indoor light luminary. It consists of a compact Fluorescent lamp (CF lamp) and high frequency inverter. High frequency inverter offers high efficiency, more light output and long service life to the CF Lamp. The Indoor lighting luminaries are available in different lamp wattages and models. All adequate protections are provided in the luminary for safety, reliability and long life. These lights are ideally suited for lighting applications powered from renewable energy sources like solar, wind etc these are widely used in solar Home systems.

5.1 Package: 20Wp20 Wp solar home lighting system. It provides 2 CFL (compact fluorescent lamp) lamps. The back up time of this system is 4 day. It provides 20 wp PV solar module and also provide 1 no 12 V, 30 AH Deep Cycle Battery. Charge Controller is 1 Nos. This package also provides 2Nos Luminaries Mounting Structure, other accessories. System components: 1 No. 20Wp PV Module, 1 No 12V, 30 AH Deep Cycle Battery, 1 No. Charge Controller, 2Nos. Luminaries Mounting Structure, Accessories. Operating Load: 2 CFL Back-up hour/day: 4

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Price: 20 WP Unit ( STP)System Cost Qty Material cost 1 1 2 2 2 2 2 60 60 100 1 1 1 1 1 1 1 .5

SL NO

Name of Items

UOM No No No Nos Nos. Nos Nos Feet Feet Nos Pair No No No No No No No No No

A Solar Module B Battery C Accessories 1 Charge Controller Innovative 12V 10A 2 Shade & Circuit LP 3 FTL 7.5 W 4 Switch 5 Switch Box 6 CABLE 2*70/.0076(Single) 7 Cable 2*40/.0076 8 Cable Clip 9 Battery Welding Cable Pair lig 10 Structure With nut bolt 11 Dc mobile Charger 12 TV socket 13 De lionized Water 1 LTR Bottle 14 Petroleum Jelly 15 Funnel 16 Solar maintenance Card 17 Carton 10W/20W/40W 18 Nitto tape Total Accessories Cost F. Total Cost (A+B+C+D0 Product Cost Admin Cost Selling & Distribution Cost Cost of Good Sold Profit 14% Sales Price

11010

11010.25 3500 2500 17010.25 2381.435 19391.69

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In this table Number of materials are solar Module no 2 Battery no.1, Charge Controller Innovative 12V 10A no.2, Shade & Circuit LP no. 2, FTL 7.5 W no 2, Switch no 2, Switch Box no 2, CABLE 2*70/.0076(Single) 60 feet, Cable 2*40/.0076 60 feet, Cable Clip no. 100, Battery Welding Cable Pair lig no 1, TV socket no 1, De lionized Water 1 LTR Bottle no 1, Petroleum Jelly no. 1, Funnel no. 1, Solar maintenance Card no.1, Carton 10W/20W/40W no.1, Nitto tape no. 0.5. Total cost of material 11010 ad admin cost 3500 and selling cost 2500. Gross profit 14% of the cost of good sold. Package price is 19391.69.

5.2 Package: 40Wp40 Wp solar home lighting system. It provides 3 FLT lamps. The back up time of this system is 4 day. It provides 40 wp PV solar module and also provide 1 no 12 V, 88 AH Deep Cycle Battery. Charge Controller is 1 Nos. This package also provides 3Nos Luminaries Mounting Structure, other accessories.

System components: 1 No. 40Wp PV Module, 1 No 12V, 88 AH Deep Cycle Battery, 1 No. Charge Controller, 3Nos. Luminaries Mounting Structure, Accessories. Operating Load: 3 FLT Back-up hour/day: 4 Price:

SL NO

Name of Items Solar Module Battery Accessories Charge Controller Innovative 12V 10A Shade & Circuit LP FTL 7.5 W

UOM No No No Nos Nos.

A B C 1 2 3

40 WP Unit ( STP)System Cost Qty Material cost 1 1 1 3 3

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4 Switch 5 Switch Box 6 CABLE 2*70/.0076(Single) 7 Cable 2*40/.0076 8 Cable Clip 9 Battery Welding Cable Pair lig 10 Structure With nut bolt 11 Dc mobile Charger 12 TV socket 13 De lionized Water 1 LTR Bottle 14 Petroleum Jelly 15 Funnel 16 Solar maintenance Card 17 Carton 10W/20W/40W 18 Nitto tape Total Accessories Cost F. Total Cost (A+B+C+D0

Nos Nos Feet Feet Nos Pair No No No No No No No No No

4 4 65 120 100 1 1 1 1 1 1 1 1 1 1

18766

Product Cost Admin Cost Selling & Distribution Cost Cost of Good Sold Profit 14% Sales Price

18766 4500 4000 27265.55 3817.177 31082.73

In this table Number of materials are solar Module no 2 Battery no.1, Charge Controller Innovative 12V 10A no.2, Shade & Circuit LP no. 3, FTL 7.5 W no 3, Switch no 4, Switch Box no 4, CABLE 2*70/.0076(Single) 65feet, Cable 2*40/.0076 120 feet, Cable Clip no. 100, Battery Welding Cable Pair lig no 1, TV socket no 1, De lionized Water 1 LTR Bottle no 1, Petroleum Jelly no. 1, Funnel no. 1, Solar maintenance Card no.1, Carton 10W/20W/40W no.1, Nitto tape no. 1. Increase Shade & Circuit, FTL 7.5 W both of 2 boxes then the 20 wp and Number of cable increase 5 and 60 feet. Total cost of material 18766 ad admin cost 4500 and selling cost 4000. Gross profit 14% of the cost of good sold. Package price is 31082.73.

5.3 Package: 45Wp24

45 Wp solar home lighting system. It provides 3 FLT lamps. The back up time of this system is 4 day. It provides 45 wp PV solar module and also provide 1 no 12 V, 88 AH Deep Cycle Battery. Charge Controller is 1 Nos. This package also provides 3Nos Luminaries Mounting Structure, other accessories. System components: 1 No. 45Wp PV Module, 1 No 12V, 55 AH Deep Cycle Battery, 1 No. Charge Controller, 3Nos. Luminaries Mounting Structure, Accessories. Operating Load: 3 FLT Back-up hour/day: 4 Price:

SL NO

Name of Items Solar Module Battery Accessories Charge Controller Innovative 12V 10A Shade & Circuit LP FTL 7.5 W Switch Switch Box CABLE 2*70/.0076(Single) Cable 2*40/.0076 Cable Clip Battery Welding Cable Pair lig Structure With nut bolt Dc mobile Charger TV socket De lionized Water 1 LTR Bottle Petroleum Jelly Funnel Solar maintenance Card

UOM No No No Nos Nos. Nos Nos Feet Feet Nos Pair No No No No No No No

A B C 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

45 WP Unit ( STP)System Cost Qty Material cost 1 1 2 3 3 4 4 65 120 120 1 1 1 1 1 1 1 1

20311

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17 Carton 10W/20W/40W 18 Nitto tape Total Accessories Cost F. Total Cost (A+B+C+D0

No No

1 1

Product Cost Admin Cost Selling & Distribution Cost Cost of Good Sold Profit 14% Sales Price

20311.49 4000 3500 27811.49 3893.6086 31705.10

In this table Number of materials are solar Module no 2 Battery no.1, Charge Controller Innovative 12V 10A no.2, Shade & Circuit LP no. 3, FTL 7.5 W no 3, Switch no 4, Switch Box no 4, CABLE 2*70/.0076(Single) 65 feet, Cable 2*40/.0076 140 feet, Cable Clip no. 120, Battery Welding Cable Pair lig no 1, TV socket no 1, De lionized Water 1 LTR Bottle no 1, Petroleum Jelly no. 1, Funnel no. 1, Solar maintenance Card no.1, Carton 10W/20W/40W no.1, Nitto tape no. 1. All most same as 40 Wp. Only increase cable clip no. 20. Total cost of material 20311.49 ad admin cost 4000 and selling cost 3500. Gross profit 14% of the cost of good sold. Package price is 31705.

5.4 Package: 50Wp50 Wp solar home lighting system. It provides 4 FLT lamps. The back up time of this system is 4 day. It provides 50 wp PV solar module and also provide 1 no 12 V, 88 AH Deep Cycle Battery. Charge Controller is 1 Nos. This package also provides 4Nos Luminaries Mounting Structure, other accessories. System components: 1 No. 50Wp PV Module, 1 No 12V, 88 AH Deep Cycle Battery, 1 No. Charge Controller, 4Nos. Luminaries Mounting Structure, Accessories. 26

Operating Load: 4 FLT Back-up hour/day: 4

Price:SL NO

Name of Items

UOM No No No Nos Nos. Nos Nos Feet Feet Nos Pair No No No No No No No No No

Unit Cost

A Solar Module B Battery C Accessories 1 Charge Controller Innovative 12V 10A 2 Shade & Circuit LP 3 FTL 7.5 W 4 Switch 5 Switch Box 6 CABLE 2*70/.0076(Single) 7 Cable 2*40/.0076 8 Cable Clip 9 Battery Welding Cable Pair lig 10 Structure With nut bolt 11 Dc mobile Charger 12 TV socket 13 De lionized Water 1 LTR Bottle 14 Petroleum Jelly 15 Funnel 16 Solar maintenance Card 17 Carton 10W/20W/40W 18 Nitto tape Total Accessories Cost F. Total Cost (A+B+C+D0

50 WP ( STP)System Qty Material cost 1 1 2 4 4 5 5 65 160 160 1 1 1 1 1 1 1 1 1 1

22223

Product Cost Admin Cost Selling & Distribution Cost Cost of Good Sold Profit 14% Sales Price 27

22223.3 4500 4000 30723.3 4301.262 35024.56

In this table Number of materials are solar Module no 2 Battery no.1, Charge Controller Innovative 12V 10A no.2, Shade & Circuit LP no. 3, FTL 7.5 W no 3, Switch no 5, Switch Box no 5, CABLE 2*70/.0076(Single) 65 feet, Cable 2*40/.0076 160 feet, Cable Clip no. 160, Battery Welding Cable Pair lig no 1, TV socket no 1, De lionized Water 1 LTR Bottle no 1, Petroleum Jelly no. 1, Funnel no. 1, Solar maintenance Card no.1, Carton 10W/20W/40W no.1, Nitto tape no. 1. Increase number of switch & switch box is 1 and cable 2*40 is increase is 40 feet, number of cable clip is increase 20 then the 45 wp. Total cost of material 22223 ad admin cost 4500and selling cost 4000. Gross profit 14% of the cost of good sold. Package price is 35024.

5.5 Package: 65Wp65 Wp solar home lighting system. It provides 5 FLT lamps. The back up time of this system is 4 day. It provides 65 wp PV solar module and also provide 1 no 12 V, 100 AH Deep Cycle Battery. Charge Controller is 1 Nos. This package also provides 5Nos Luminaries Mounting Structure, other accessories. System components: 1 No. 65Wp PV Module, 1 No 12V, 100 AH Deep Cycle Battery, 1 No. Charge Controller, 5Nos. Luminaries Mounting Structure, Accessories. Operating Load: 5 FLT Back-up hour/day: 4 Price: 65 WP ( STP)System Qty Material cost 1 1

SL NO

Name of Items Solar Module Battery 28

UOM No No

Unit Cost

A B

C Accessories 1 Charge Controller Innovative 12V 10A 2 Shade & Circuit LP 3 FTL 7.5 W 4 Switch 5 Switch Box 6 CABLE 2*70/.0076(Single) 7 Cable 2*40/.0076 8 Cable Clip 9 Battery Welding Cable Pair lig 10 Structure With nut bolt 11 Dc mobile Charger 12 TV socket 13 De lionized Water 1 LTR Bottle 14 Petroleum Jelly 15 Funnel 16 Solar maintenance Card 17 Carton 10W/20W/40W 18 Nitto tape Total Accessories Cost F. Total Cost (A+B+C+D0

No Nos Nos. Nos Nos Feet Feet Nos Pair No No No No No No No No No

2 5 5 6 6 70 180 180 1 1 1 1 1 1 1 1 1 1

27335

Product Cost Admin Cost Selling & Distribution Cost Cost of Good Sold Profit 14% Sales Price

27335 5000 4200 36534.75 5114.865 41649.62

In this table Number of materials are solar Module no 2 Battery no.1, Charge Controller Innovative 12V 10A no.2, Shade & Circuit LP no. 5, FTL 7.5 W no 5, Switch no 6, Switch Box no , CABLE 2*70/.0076(Single) 70 feet, Cable 2*40/.0076 180 feet, Cable Clip no. 180, Battery Welding Cable Pair lig no 1, TV socket no 1, De lionized Water 1 LTR Bottle no 1, Petroleum Jelly no. 1, Funnel no. 1, Solar maintenance Card no.1, Carton 10W/20W/40W no.1, Nitto tape no. 1. Increase number of switch & switch box is 1 and cable 2*40 is increase is 20 feet, number of cable clip is increase 20 then the 50 wp. Total cost of material 27335 ad admin cost 5000 and selling cost 4200. Gross profit 14% of the cost of good sold. Package price is 41649.62.

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5.6 Package: 75Wp75 Wp solar home lighting system. It provides 6 FLT lamps. The back up time of this system is 4 day. It provides 75 wp PV solar module and also provide 1 no 12 V, 100 AH Deep Cycle Battery. Charge Controller is 1 Nos. This package also provides 6Nos Luminaries Mounting Structure, other accessories System components: 1 No. 75Wp PV Module, 1 No 12V, 100 AH Deep Cycle Battery, 1 No. Charge Controller, 6Nos. Luminaries Mounting Structure, Accessories. Operating Load: 6 FLT Back-up hour/day: 4 Price:SL NO

Name of Items Solar Module Battery Accessories Charge Controller Innovative 12V 10A Shade & Circuit LP FTL 7.5 W Switch Switch Box CABLE 2*70/.0076(Single) Cable 2*40/.0076 Cable Clip Battery Welding Cable Pair lig Structure With nut bolt Dc mobile Charger TV socket De lionized Water 1 LTR Bottle Petroleum Jelly Funnel Solar maintenance Card Carton 10W/20W/40W

UOM No No No Nos Nos. Nos Nos Feet Feet Nos Pair No No No No No No No No

Unit Cost

A B C 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

75 WP ( STP)System Qty Material cost 1 1 2 6 6 7 7 80 200 200 1 1 1 1 1 1 1 1 1

35027

30

18 Nitto tape Total Accessories Cost F. Total Cost (A+B+C+D0

No

1

Product Cost Admin Cost Selling & Distribution Cost Cost of Good Sold Profit 14% Sales Price

35027.1 5500 4500 45027 6303.794 57330.89

In this table Number of materials are solar Module no 2 Battery no.1, Charge Controller Innovative 12V 10A no.2, Shade & Circuit LP no. 6, FTL 7.5 W no 6, Switch no 7, Switch Box no 7, CABLE 2*70/.0076(Single) 80 feet, Cable 2*40/.0076 200 feet, Cable Clip no. 200, Battery Welding Cable Pair lig no 1, TV socket no 1, De lionized Water 1 LTR Bottle no 1, Petroleum Jelly no. 1, Funnel no. 1, Solar maintenance Card no.1, Carton 10W/20W/40W no.1, Nitto tape no. 1. Increase number of switch & switch box is 1 and cable 2*70 increase 10 feet, cable 2*40 is increase is 20 feet; number of cable clip is increase 20 then the 65 wp. Total cost of material 35027.1ad admin cost 55000 and selling cost 4500. Gross profit 14% of the cost of good sold. Package price is 19391.69.

5.7 Package: 85Wp85 Wp solar home lighting system. It provides FLT lamps. The back up time of this system is 4 day. It provides 85 wp PV solar module and also provide 1 no 12 V, 130 AH Deep Cycle Battery. Charge Controller is 1 Nos. This package also provides 7Nos Luminaries Mounting Structure, other accessories. System components: 1 No. 85Wp PV Module, 1 No 12V, 130 AH Deep Cycle Battery, 1 No. Charge Controller, 7Nos. Luminaries Mounting Structure, Accessories.

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Operating Load: 7 FLT Back-up hour/day: Price:SL NO

Name of Items

UOM No No No Nos Nos. Nos Nos Feet Feet Nos Pair No No No No No No No No No

Unit Cost

A Solar Module B Battery C Accessories 1 Charge Controller Innovative 12V 10A 2 Shade & Circuit LP 3 FTL 7.5 W 4 Switch 5 Switch Box 6 CABLE 2*70/.0076(Single) 7 Cable 2*40/.0076 8 Cable Clip 9 Battery Welding Cable Pair lig 10 Structure With nut bolt 11 Dc mobile Charger 12 TV socket 13 De lionized Water 1 LTR Bottle 14 Petroleum Jelly 15 Funnel 16 Solar maintenance Card 17 Carton 10W/20W/40W 18 Nitto tape Total Accessories Cost F. Total Cost (A+B+C+D0

85 WP ( STP)System Qty Material cost 1 1 2 6 6 7 80 200 200 1 1 1 1 1 1 1 1 1 1 1

35027

Product Cost Admin Cost Selling & Distribution Cost Cost of Good Sold Profit 14% Sales Price

35027.1 5500 4500 45027 6303.794 57330.89

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In this table Number of materials are solar Module no 2 Battery no.1, Charge Controller Innovative 12V 10A no.2, Shade & Circuit LP no. 6, FTL 7.5 W no 6, Switch no 7, Switch Box no 7, CABLE 2*70/.0076(Single) 80 feet, Cable 2*40/.0076 200 feet, Cable Clip no. 200, Battery Welding Cable Pair lig no 1, TV socket no 1, De lionized Water 1 LTR Bottle no 1, Petroleum Jelly no. 1, Funnel no. 1, Solar maintenance Card no.1, Carton 10W/20W/40W no.1, Nitto tape no. 1. Almost same as 75 wp only increase 7Nos. Luminaries Mounting Structure. Total cost of material 35027ad admin cost 5500 and selling cost 4500. Gross profit 14% of the cost of good sold. Package price is 57330.89 taka.

5.8Package: SOLAR PUMPRRE has launched a solar powered water pumping system for drinking and irrigation purpose. For an agro-based country like Bangladesh where electricity for pumping is very scarce, this is the solution which will enable us to save a lot of energy. The solar pump comprises of the pump, a motor, solar modules, a control device and piping accessories. Recently RRE has introduced solar powered water Purification system for arsenic and salinity prone areas where the drinking water is very scarce.

Item Solar Module

Description 85 Wp,12 volt 85 Wp, Street light 85 Wp, Pump 5 Panel structure ( for 85wp) (from rangamoto) Single panel mouting structure(for 85WP) Single mouting structure( 80 wp), Pump ( on roof) 12 V, 55 [email protected] 12 volt, 100 [email protected] Hour 1 step( 12V, 100 AH battery 4nos) 2 step( 12V, 100AH battery 6 nos) 24V, 15A (Phocos) 5 Amps (TATABP)

Quantity 8 1 1 1 3 1 1 10 1 1 3 1

Unit Cost

Total Cost

Module Support Structure Battery Battery Rack Charge Controller

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Pump( pump, motor, controller) Pole CFL AJB Cable, Panel to AJB Cable, AJB o controller Cable, battery to Controller Cable, controller to DCDB Cable, DCDB to Load Earthling Cable 4 core Moto Rcabe( Pum motor to SMC 2 core cable (panel to SMC) Panel Cable Battery Cable Delivery pipe and suction pipe Copper rod Heat sink tube Switch Switch box Circuit breaker DP with box Circuit breaker DP with box DC DB Cable lug Cable lug Cable lug

1 ( Dia:3 , Length:14) 12v, 11 watt with shade, :Street light Training center and gust house DIMENSION 2*70*0.0076 5 RM 25rm 5rm 70/76 2.5rm 5.25rm 2.25rm 2c*70*0.0076 6 rm 0.5 inch 8 mm 2.5rm Singe 32amp 63A Design? 25 rm (ring type) 10 rm(ring type) 25 rm(pin type) 34 1 1 2 110 140 130 60 1350 190 10 30 12 6 45 5 49 49 3 3 2 60 20 20

817937

Cable lug Connecting lug Cable lug for battery Pin type lug Ring type lug Royal plug Royal plug Royal bolt Industrial channel Channel for cabling Cable tie Cable tie Elbow Socket Bend Teflon tape Nito tape Scotch tape PIB Tape U clamp Copper C clump Screw Screw Petroleum jelly PVC solution De-lonized water Installation Expense Labor expense Transportatio n After sales service

2.5 rm( pin type) 2.5 rm 25 rm 25 rm (12 number) 10 number 8 mm 2 inch 10 number 8, 10 inch 0.5 inch 0.5 inch

24 32 2 6 6 22 1 48 5 35 2 8 3 4 2 5 4 2 1 10 1 5 1 12 1 5 1 1 1

0.5 inch 8 mm 1.5 inch with washer 1.5 inch

35 liter Jar

1 technician 3 times a year Total cost

3

Product Cost Admin cost

817937.40 10000 35

Selling & Distribution Cost Cost of Goods Sold Profit14% Sales Price .

5000 832937.4 116611.236 949548.64

It is a customized product. Every material depends on customer need. Material cost of soar pump is 817937.40, admin cost 10000 selling cost of this product 5000. Grows profit of this product is 116611. Package price is 949548.64 taka.

5.9 Project: Bangladesh power development projectRRE is working with government and private organizations to promote customized solar power solutions. Most of the solutions are highly customized based on customers specific requirements in terms of load selection, operational hours, availability of other energy sources and site conditions. The followings are some patterns of our offered customized solutions BPDP Project-2.5KW AC Load_12 Hrs Operation/day without Autonomy SL Item Name Description Comments Qty Total cost No 3861153.20 Equipments and Accessories 1 Solar PV 9.36KWp ( STP06514400 module 12) 2 Lead Acid 450 AH(Traction 7200 Battery Type, 2V each Battery Rack 3 MPPT SCR FM60,60A 6.00 4 Module Galvanize Frame 1.00 Structure & C/Ws 1.00 C/Ws 5 ATS 20Amps 6 Manual Change over Switch 30 Amps 2.00 7 Inverter TK28000/ 2.00 Each 8 Solar Main Junction Bos 4.00 Accessories with Fuse BPP Local 1.00 purchase IPP Local 1.00 36

SCR Protection Panel ( SPP) AC Distribution Box(ACDB) Lightning & Over Voltage Protection Earthing Kit 9 Cable Cable 1*4 rm (pv to MJB) Cable 1*25 rm (MJB to SCR PP) Cable 1*16 rm ( SCR PP to SCR) Cable 1*16 rm (SCR to IPP) Cable 1*16 rm (IPP to Inverter) Cable 1*16 rm (IPP to Battery) Cable 1*4 rm ( inverter to ACout) Cable 1*4 rm (ACD to Sumbstation) Cable 1*10 rm ( ACD to substation) Cable 1*4 rm ( MCS to floor DB) Cable 3/20 ( Floor DB to Load Cable) Cable 1*35rm Green Earthing cable Cable 1*4 rm (Existing DB to ATS & MCS

purchase Local purchase Local purchase Local purchase Local purchase NYYF NYY NYY NYY NYY NYY NYY NYY NYY NYY

1.00 1.00 1.00 2.00 350.00 490.00 25.00 15 20 30 20 20 20 600 200

BYA NYY

100 40

Total Cost of Equipments and Accessories Installation & Commissioning Cost 8 Installation Cable lug, Heat sink, Accessories Nut-bolt, Screw, ALPin, Washer, C-Clamp, Tape, Royal plug, Royal bolt, Tools, Coil/Flrixible pipe, 37 Local purcha se 1.00

Cable tie Installation Expense Labor Cost Transportation Cost Total Installation & Commissioning cost Total project cost 1.00 Assum 1.00 e

Product Cost Admin Cost Selling & Distribution Cost Cost of goods Sold Profit 14% Sales price

3861153.2 15000 5500 3881653.2 543431.448 4425084.65

It is customize project for Bangaldesh power development. The have need 2.5KW AC Load_12 Hrs Operation/day without Autonomy. BPDP project costs are material cost 3861153.2, Admin cost 15000 and selling and distribution cost 5500. Profit is 14% of the Cost of good sold. Package price is 4425084.65 taka.

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5.10 Evaluation

Rahimafrooz Renewable energy ltd mainly follows job costing accumulation system. Job-order costing is used by Rahimafrooz renewable energy ltd where goods are produced in distinct batches and there are significant differences among the batches. Generally: In a job-order costing system, costs of direct material, direct labor, and manufacturing overhead are assigned to each production job. These costs comprise the inputs of the product costing system. As costs are incurred, they are added to the Work-in-Process Inventory account in the ledger. To keep track of the manufacturing costs assigned to each job, a subsidiary ledger is maintained. Rahimafrooz renewable energy ltd job cost accounting system, a Budget is set up in advance of the job. As actual costs are accrued, they are compared to budgeted costs, to determine variances for each phase of each job. Costs are used for each phase, allowing "mini-budgets" to be generated and tracked. Elements of Import cost, labor, and storage cost, rate of interest on the capital invested in product and rate of demand for product, setting up costs Rahimafrooz Renewable energy ltd are accumulated according to assigned job numbers. They are mainly import product and buy form other SBU of Rahimafrooz. Like solar module the buy from India or china. Batters buy from Rahimafrooz Batteries Ltd But they are newly go to produce solar module. They sale Solar lighting system and Solar pump and some making some ordered project. Rahimafrooz sale this product two ways some are package some are business approval (order product).

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Package products are like 20WP, 65 WP, 75WP. Accumulate the entire products price and add all the cost and set the price. If the supplies products price increase package product price also increase.

For the Order product: First sales person take order form customer then the count how many product unit need. Then sales department want to know total cost of the product from costing department. Costing department accumulate all the product cost and Admin cost and selling & Distribution Cost and also add Gross profit. Finally set sales price (proposed price) If the higher authority approves this Price then sales person do this project. Rahimafrooz renewable energy ltd is not use Process costing because the products are not homogeneous. They use job costing systems assign costs to distinct production jobs that are significantly different. An average cost per unit of product is then calculated for each job.

Rahimafrooz renewable energy ltd follow Traditional cost allocation system. Rahimafrooz renewable energy ltd allocate product cost, Admin cost, selling & distribution cost, Salaries and fringe benefits of selling, general and administrative personnel, entertainment, Rent, property taxes, utilities for the space used by the non manufacturing functions of the company, Insurance for areas outside of the factory, Interest on business loans, Marketing and advertising, Depreciation and maintenance of equipment and buildings outside of manufacturing. Supplies for the office use traditional cost allocation technique. Rahimafrooz renewable energy ltd ad all cost of per year then allocate per project.

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Rahimafrooz renewable energy ltd calculated profit per unit depends on project and competitor. Firstthey accumulate the all cost then charge profit on market base.

1 Customer orders

7 Finally sales department do the project.

2 Sales department take the orders

6 Finance department check it whether project profit able or not.

3 Sales department go to finance department for business approval

5 Finance department go to supply chain department to know current supply product price.

4 Finance department take the orders.

RRE pricing system

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CHAPTER 6Findings of the Study

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Renewable Energy -- solar energy, Bio-gas, Bio- mass, Wind turbine, Hydro electric Rahimafrooz renewable energy products are Solar home lighting system, Solar pump, Solar Street light, Solar Rooftop Solution, Solar power BTS ( ase Transcever station), Water Heater. Solar home lighting system packages are 20 Wp price-19391.69, 40Wp

price-31082.73, 45 Wp price-31705.10 , 50 Wp price-35024.56 , 65 Wp price-41649.62 , 75 Wp price- 57330.89 and 85 Wp-57330.89. Other products depend on the Project accumulated price. Rahimafrooz renewable energy use job processing cost accumulation system. Rahimafrooz renewable energy allocates their cost use Traditional methods. They calculate per unit profit depends on project and competitor.

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CHAPTER 7SUGGESTIONS

44

Rahimafrooz renewable energy ltd is flow the traditional cost allocation method. But it has some disadvantage like- do not focus on where or why costs occur, provide little insight into the causes of variances, report information that is accounting-oriented, inaccurate, not flexible and not timely, are not easily understood by operational managers, since the focus is fiscal, do not associate the cost of a product or service with the actual effort expended. They can use Activity-Based Costing (ABC). It has some benefit like -is based on ACTUAL performance, consumption and expense data extracted from the organizations existing information systems and combined with the knowledge of those directly involved in the delivery of the product or service, assigns costs to activities based on the resources they consume, provides insights into the sources of costs and the possible impact of different decisions provides the information required to take action and realize performance breakthroughs. Activity-Based Costing for Renewable energy like

Cost Allocation Base: 1. Quantity of product produced. 2. Number of product produce per Batch. 3. Number of Batches. 4. Setup time per Batch. 5. Total Setup Hours. Cost Hierarchies: 1. Output unit level Cost. ---Cost of Energy, Machine Depreciation & Repair. 2. Batch Level Cost. --Purchase order, Product received & Paying to supplier. 3. Product Sustaining Cost. ---Engineering cost. 4. Facility Sustaining Cost. --- Administrative Cost, Rent.

ABC system calculates the cost of individual activities & assign costs to cost objects such as product & services on the basis of the activities needed to produce each product or Service.

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ABC system focuses on indirect cost, refining the assignment of indirect cost to Departments, process, products & other cost objects.

Refining a Costing System: 1. Direct Cost Tracing. 2. Indidect cost pools. 3. Cost allocation bases. Use the cause & effect criterion.

Existing Single Indirect Cost Pool System: 1. Identify the products that are the chosen cost objects. 2. Identify the Direct costs of the Products. 3. Select the cost-allocation base to use for allocating indirect costs to the products. 4. Identify the indirect costs associated with each cost-allocation base. 5. Compute the rate per unit of each cost allocation base used to allocate indirect cost to the product. 6. Comute the indirect cost allocated to the products. 7. Compute the total cost of the products by adding the all direct & indirect costs assign to the products.

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CHAPTER 8CONCLUSION

47

Solar Energy is the best renewable energy source other than the primary non renewable sources in urban area. Other form of renewable energies generated from wind, bio gas, ocean tide, hydro etc have very little feasibility in urban areas of Bangladesh. Most of the cities are few meters up from the sea level. So there is not that much feasibility for hydropower except Chittagong Hill Tracts and few other places. Bangladesh has very few potential locations for hydro electric project. Wind and Ocean tide energy can be the sources, but the exact potential is not clearly known due to lack of study and relevant information. So the solar energy is the ultimate suitable form of renewable energy for urban region because of availability of plenty of sunshine.

There is serious lack of proper campaign and branding to popularize the solar energy in Urban Bangladesh. Solar energy can be a complimentary environment friendly source of power and can play a significant role in reducing current urban power crisis. Government and Private sector should work hand in hand to harness the immense potential of solar energy of Bangladesh. Price should not be out of capacity from urban people

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Bibliography1. http://www.rahimafrooz.com/Default.aspx 2. http://chethoughts.com/?p=373 3. http://www.lged-rein.org/images/Renewable_Energy_Policy2008.pdf 4. http://www.answers.com/topic/process-costing#ixzz1TH9W3Lij 5. http://books.google.com/books? id=4QsAAAAAMBAJ&pg=PA37&lpg=PA37&dq=solar+system+pricing+ +methods&source=bl&ots=K1zbUn1Fc&sig=YdCjpxmr7qPW4YiLXFKuj4_8ess&hl=en&ei=juYJTpigLaydmQW1y5y OAQ&sa=X&oi=book_result&ct=result&resnum=1&ved=0CE0Q6AEwAA#v=onepage &q&f=false 6. http://entrepreneurs.about.com/od/salesmarketing/a/pricingstrategy.htm 7. Ahmed, R. (2010). Power crisis In Bangladesh. Retrieved from World Wide Web: (http://hubpages.com/hub/Power-crisis-In-Bangladesh) (Accessed on August 22, 2010).

8. Nagle, Thomas and Holden, Reed. The Strategy and Tactics of Pricing. Prentice Hall, 2002. Pages 84-104. 9. Mind of Marketing, "How your pricing and marketing strategy should be influenced by your customer's reference point" 10. Dolan, Robert J. and Simon, Hermann (1996). Power Pricing. The Free Press. ISBN 0-68483443-X. 11. Bernstein, Jerold: "Use Suppliers Pricing Mistakes", Control, 2009.

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