7-i 

CHAPTER 7. PRODUCT PRICE DETERMINATION 

TABLE OF CONTENTS 

7.1 INTRODUCTION ........................................................................................................... 7-1

7.2 METHODOLOGY .......................................................................................................... 7-1

7.2.1 Discount Determination ....................................................................................... 7-1

7.2.2 End-User Price Determination ............................................................................. 7-2

7.2.3 Exception Relief for 700 Series T8 GSFLs ......................................................... 7-3

7.3 RESULTS ........................................................................................................................ 7-4

7.3.1 End-User Prices for General Service Fluorescent Lamps .................................... 7-4

7.3.2 End-User Prices for Incandescent Reflector Lamps ............................................ 7-5

LIST OF TABLES 

Table 7.3.1 End-User Prices for 4-Foot Medium Bipin GSFLs .................................................. 7-4

Table 7.3.2 End-User Prices for 4-foot T5 Minitature Bipin (MiniBP) SO GSFLs .................... 7-4

Table 7.3.3 End-User Prices for 4-foot T5 MiniBP HO GSFLs .................................................. 7-5

Table 7.3.4 End-User Prices for 8-foot Single Pin (SP) Slimline GSFLs ................................... 7-5

Table 7.3.5 End-User Prices for 8-foot Recessed Double Contact (RDC) HO GSFLs ............... 7-5

Table 7.3.6 End-User Prices for IRLs .......................................................................................... 7-6
7-1

CHAPTER 7. PRODUCT PRICE DETERMINATION 

7.1 INTRODUCTION 

This chapter describes the methodology the U.S. Department of Energy (DOE) followed 

in developing end-user prices for general service fluorescent lamps (GSFLs) and incandescent 

reflector lamps (IRLs) considered in this rulemaking. It also provides the initial results for the 

lamp end-user prices. 

In energy conservation standards rulemakings, DOE often develops cost-efficiency 

relationships in the engineering analysis (chapter 5 of this technical support document [TSD]). 

Then, DOE applies markups to derive end-user prices. For this rulemaking, DOE derived 

candidate standard levels (CSLs) in the engineering analysis and prices in this chapter of the 

TSD. The product price determination develops end-user prices directly because reverseengineering a lamp is impractical, as the lamps are not easily disassembled. By combining the 

results of the engineering analysis and the product price determination, DOE derived typical 

inputs for use in the life-cycle cost (LCC; chapter 8 of this TSD) analysis and the national impact 

analysis (NIA; chapter 10 of this TSD). 

Because DOE recognizes that consumers may be required to purchase a new ballast to 

accommodate higher efficacy GSFLs and/or choose to replace their ballast to obtain higher 

energy savings, DOE also developed prices for ballasts. Appendix 7A of this TSD describes the 

methodology used to derive the end-user prices for the ballasts that are considered in the 

engineering analysis.

7.2 METHODOLOGY 

End-user price refers to the average product price a consumer pays before tax and 

installation. In its review of publicly available prices for GSFLs and IRLs, DOE observed a 

range of end-user prices paid for a lamp, depending on the distribution channel through which 

the lamp is purchased. Based on feedback from manufacturer interviews, GSFL and IRL 

manufacturers usually sell through a distribution chain that may involve dealers or retailers; 

distributors or wholesalers; contractors; state, city, or local governments; and original equipment 

manufacturers (OEMs). Of the possible distribution chains, DOE identified three main channels 

(state procurement, large distributors including do-it-yourself stores, and Internet retailers). 

Using these main channels, DOE developed three different end-user prices (low, medium, and 

high) as representative of a range of publicly available prices. In developing end-user prices, 

DOE gathered publicly available lamp pricing data after the compliance date of the standards 

promulgated by the previous rulemaking amending GSFL and IRL standard levels (hereafter the 

“2009 Lamps Rule”). 74 FR 34080 (July 14, 2009). 

7.2.1 Discount Determination 

DOE first collected manufacturer suggested price lists (hereafter referred to as “blue 

books”) for covered GSFLs and IRLs. Blue book prices refer to suggested retail prices issued by 

manufacturers and are usually specified for bulk quantity purchases. Starting with a consistent 
7-2

set of aggregated blue book prices, DOE calculated an average discount ratio based on the 

corresponding lamp prices offered in state procurement contracts and by Internet retailers.a DOE 

found that the discounts did not vary with wattage or efficacy, and therefore applied a single 

discount for all GSFLs and a single discount for IRLs to estimate end-user prices. 

State procurement contracts typically offered the greatest discounts off blue book prices: 

approximately 83 percent off the blue book for GSFLs and about 75 percent off the blue book for 

IRLs. These contract prices represent large purchases and therefore reflect steep discounts. 

Therefore state procurement contract pricing constitutes the high discount and was used to 

develop the low end-user prices. Prices were the highest at Internet retailers because consumers 

typically purchase from Internet retailers in small volumes. Discounts based on Internet retailers 

were approximately 55 percent off the blue book for GSFLs and about 36 percent off the blue 

book for IRLs. Therefore, Internet retailer pricing constitutes the low discount and was used to 

develop the high end-user prices. DOE was unable to find an adequate amount of pricing 

information from large distributors, such as do-it-yourself stores, to empirically determine a 

discount factor. Distributor prices are generally not publicly available and the price quotes that 

could be obtained from distributors reflected regional discounts. DOE visited several large 

distributors, including Home Depot, Lowe’s, Target, and Walmart, but found very few covered 

products that were compliant with the standards adopted in the 2009 Lamps Rule that require 

compliance in July 2012 (hereafter the “July 2012 standards”). However, manufacturer feedback 

and DOE research indicated that the large distributor channel represents the medium price 

relative to the state procurement and Internet prices. Therefore, using an average of the state 

procurement and Internet discounts, DOE developed a medium discount of approximately 69 

percent off the blue book for GSFLs and about 56 percent off the blue book for IRLs. These 

discounts were used to develop the medium end-user prices. 

7.2.2 End-User Price Determination 

In chapter 5 of this TSD, DOE identified representative lamps for each CSL analyzed in 

the GSFL and IRL product classes. DOE applied the discounts developed in section 7.2.1 to the 

aggregated blue book values of each representative lamp to obtain a low, medium, and high enduser price. For the representative lamps for which blue book prices were unavailable, DOE 

extrapolated pricing from similar lamps whose blue book prices were available. This was done 

by using the blue book prices of equivalent lamps from an alternative manufacturer and by 

developing price ratios based on wattage and/or technology, as appropriate. 

Because one of the T5 high output (HO) lamps analyzed at CSL 1 was not commercially 

available, DOE developed a scaling factor based on the prices of the T5 standard output (SO) 

lamps. DOE calculated the ratio between the blue book prices at the baseline and CSL 1 for the 

full wattage T5 SO representative lamps. DOE then applied this ratio to the aggregated blue book 

value of the full wattage T5 HO baseline lamp to determine the price for the T5 HO model lamp 

at CSL 1. See appendix 5A of this TSD for further detail on this modeled lamp. 

 

a

 To calculate discounts for state procurement contracts and internet retailers, DOE analyzed lamps that had more 

than one state procurement price or Internet retail price. 
7-3

After generating end-user prices, DOE added sales tax and installation costs, where 

appropriate, to derive the total, installed end-user cost for the LCC analysis (chapter 8 of this 

TSD). 

7.2.3 Exception Relief for 700 Series T8 GSFLs 

 At the time of this analysis, Philips Lighting Company (Philips), GE Lighting (GE), 

OSRAM SYLVANIA, Inc. (OSI), Ushio America, Halco Lighting Technologies, Premium 

Quality Lighting, Inc., Tailored Lighting, Inc., Litetronics International, Inc., Satco Products, 

Inc., DLU Lighting USA, Westinghouse Lighting Corporation, Ascent Battery Supply, L.L.C., 

EiKO, Ltd., and Topaz Lighting Corporation have been granted waivers exempting their 700 

series T8 lamps from the July 2012 standards for a period of two years. This group includes the 

three manufacturers that hold the majority of the domestic market share of GSFLs (GE, OSI, and 

Philips). The waiver was granted per the Requests for Adjustments provision (also known as 

“exception relief”), which allows a manufacturer to submit a hardship waiver to DOE’s Office of 

Hearings and Appeals (OHA). 

In this case, the exception relief focused on the impact of standards on the supply and 

demand of rare earth phosphors. Rare earth phosphors are a key technology in increasing the 

efficacy of fluorescent lamps. Specifically, the use of terbium, europium, and yttrium allows a 

lamp to emit light at the wavelengths to which human eyes are most sensitive. The exception 

relief was sought and granted on the basis that due to the global supply restriction of rare earth 

phosphors and rising world demand for these phosphors, manufacturers would be unable to attain 

the necessary amount to produce standards-compliant lamps.1 In the framework stage of this 

rulemaking, DOE received comments from manufacturers that an increased demand for rare 

earth phosphors would be difficult to meet as the phosphors are sourced from China, which has 

imposed export quotas on the elements. The increase in demand would also likely increase rare 

earth phosphor prices according to manufacturers. However, while an increase is likely, 

manufacturers stated that the rare earth market is uncertain and they are unable to predict 

possible future prices under the various market forces. See chapter 2 of this TSD for further 

discussion. 

As noted previously, DOE used the latest lamp prices available at the time of this 

analysis, which are reflective of a market in which most companies are able to manufacture 

and/or sell non-compliant 700 series T8 lamps. Based on the reasoning by which the exception 

relief was granted, the requirement for more rare earth phosphors to produce standards-compliant 

lamps (i.e., 800 series for most product classes) and the subsequent rising prices of these 

phosphors may drive lamp prices higher than at the time of this analysis (i.e., with the exception 

relief in place). However, due to the exception relief, there is no historical pricing data to analyze 

for a market in which 700 series T8 non-compliant lamps were not available. Therefore, DOE 

was unable to determine the exact impact on lamp prices as a result of an increased demand for 

rare earth phosphors due to existing GSFL standards. However, DOE has conducted sensitivity 

analyses that evaluate the potential impacts of changes in rare earth prices on lamp prices and 

subsequently, cost to the consumer. 

DOE derived high and low rare earth phosphor price scenarios using historical phosphor 

price data and determined the impacts of these scenarios on LCC savings and NIA results. See 
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appendix 9B for a description of the rare earth phosphor impact scenario assessed in the NIA and 

chapter 10 of this TSD for results of this sensitivity for the NIA. See appendix 8B of this TSD 

for results of this sensitivity for the LCC. DOE also determined the maximum possible increase 

in rare earth phosphor prices that would maintain positive LCC savings for consumers at each 

CSL. See appendix 7B of this TSD for results of this analysis. 

7.3 RESULTS 

Sections 7.3.1 and 7.3.2 below summarize the low, medium, and high end-user prices for 

GSFLs and IRLs. Prices for ballasts are presented in appendix 7A of this TSD. 

7.3.1 End-User Prices for General Service Fluorescent Lamps 

 The following tables present the end-user prices for GSFLs. The prices presented do not 

include sales tax. 

Table 7.3.1 End-User Prices for 4-Foot Medium Bipin GSFLs 

CSL

ANSI 

Lamp 

Wattage 

W

Lamp 

Efficacy 

lm/W

Initial 

Lumen 

Output

lm

Mean 

Lumen 

Output

lm

CRI CCT 

Kelvin

Rated 

Life

hrs

Low 

Price

2011$

Medium 

Price

2011$

High 

Price 

2011$

Baseline 32.5 89.2 2,900 2,725 83 4,100 24,000 $2.49 $4.53 $6.58

CSL 1 32.5 90.0 2,925 2,770 85 4,100 24,000 $2.68 $4.88 $7.08

CSL 2 26.6 93.0 2,475 2,350 85 4,100 24,000 $4.76 $8.68 $12.60

CSL 2 32.5 95.4 3,100 2,941 85 4,100 24,000 $4.07 $7.42 $10.77

CSL 2 28.4 96.0 2,725 2,560 85 4,100 24,000 $3.56 $6.49 $9.42

Table 7.3.2 End-User Prices for 4-foot T5 Minitature Bipin (MiniBP) SO GSFLs 

CSL

ANSI 

Lamp 

Wattage

W

Lamp 

Efficacy

lm/W

Initial 

Lumen 

Output

lm

Mean 

Lumen 

Output

lm

CRI CCT 

Kelvin

Rated 

Life

hrs

Low 

Price

2011$

Medium 

Price

2011$

High 

Price

2011$

Baseline 27.8 104.3 2,900 2,697 85 4,100 30,000 $3.02 $5.51 $8.00

CSL 1 27.8 109.7 3,050 2,898 85 4,100 30,000 $3.53 $6.44 $9.36

CSL 1 26 111.5 2,900 2,660 85 4,100 25,000 $3.78 $6.89 $10.00

CSL 1 25 116.0 2,900 2,750 85 4,100 35,000 $4.16 $7.58 $11.01
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Table 7.3.3 End-User Prices for 4-foot T5 MiniBP HO GSFLs 

CSL 

ANSI 

Lamp 

Wattage

W

Lamp 

Efficacy

lm/W

Initial 

Lumen 

Output

lm

Mean 

Lumen 

Output

lm

CRI CCT 

Kelvin

Rated 

Life

hrs

Low 

Price

2011$

Medium 

Price

2011$

High 

Price

2011$

Baseline 53.8 92.9 5,000 4,850 86 4,100 24,000 $3.90 $7.12 $10.33

CSL 1 53.8 97.3 5,237 4,871 82 4,100 30,000 $4.64 $8.46 $12.28

CSL 1 50 100.0 5,000 4,650 85 4,100 30,000 $5.99 $10.92 $15.85

CSL 1 47 102.1 4,800 4,410 84 4,100 30,000 $6.91 $12.61 $18.30

Table 7.3.4 End-User Prices for 8-foot Single Pin (SP) Slimline GSFLs 

CSL 

ANSI 

Lamp 

Wattage

W

Lamp 

Efficacy

lm/W

Initial 

Lumen 

Output

lm

Mean 

Lumen 

Output

lm

CRI CCT 

Kelvin

Rated 

Life

hrs

Low 

Price

2011$

Medium 

Price

2011$

High 

Price

2011$

Baseline 60.1 98.2 5,900 5,430 82 4,100 24,000 $6.79 $12.39 $17.99

CSL 1 60.1 99.0 5,950 5,650 85 4,100 24,000 $7.84 $14.30 $20.76

CSL 1 54 105.6 5,700 5,360 85 4,100 24,000 $8.59 $15.67 $22.74

CSL 1 50 108.0 5,400 5,075 85 4,100 24,000 $10.53 $19.20 $27.88

Table 7.3.5 End-User Prices for 8-foot Recessed Double Contact (RDC) HO GSFLs 

CSL 

ANSI 

Lamp 

Wattage

W

Lamp 

Efficacy

lm/W

Initial 

Lumen 

Output

lm

Mean 

Lumen 

Output

lm

CRI CCT 

Kelvin

Rated 

Life

hrs

Low 

Price

2011$

Medium 

Price

2011$

High 

Price

2011$

Baseline 86 95.2 8,000 7,600 78 4,100 18,000 $6.44 $11.75 $17.05

CSL 1 86 97.6 8,200 7,800 86 4,100 18,000 $7.76 $14.15 $20.55

7.3.2 End-User Prices for Incandescent Reflector Lamps 

 The following table presents the end-user prices for IRLs. The prices presented do not 

include sales tax. 
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Table 7.3.6 End-User Prices for IRLs 

CSL Lamp 

Shape

Lamp 

Wattage

W

Lamp 

Efficacy

lm/W

Initial 

Lumen

Output

lm

Rated Life

hrs

Low Price

2011$

Medium 

Price

2011$

High 

Price

2011$

Baseline 1 PAR38 60 17.8 1,070 1,500 $5.44 $9.57 $13.92

Baseline 2 PAR38 60 18.3 1,100 3,000 $5.37 $9.45 $13.75

CSL 1 PAR38 55 20.0 1,100 4,400 $9.29 $16.34 $23.77
7-7

REFERENCES 

1

Philips Lighting Company, et al. OHA Case Nos. EXC-12-0001, EXC-12-0002, EXC-12-0003 

(2012). Accessible here: http://energy.gov/sites/prod/files/oha/EE/EXC-12-0001thru03.pdf.