Overview

What is a Light Bulb Fund Raiser?

A Light Bulb Fund Raiser demonstrates that customers will pay the full retail cost when the energy efficiency message is conveyed in a meaningful way.  The type of program benefits everyone-including energy organizations, communities, and customers.

A Light Bulb Fund Raiser is a new approach on an old idea - how to encourage customers to install energy efficient bulbs.  Traditionally, U.S. utilities promote CFLs through "giveaway" programs or with rebate or "buy down" programs aimed at retailer point-of-purchase display.  Unfortunately, this has the unintended outcome of "devaluing" the CFLs so that consumer may be less willing to purchase more at the full retail price.  It also creates a cross-subsidization where all customers are playing for those who take advantage of the free or discontinued CFLs.

The value proposition for CFLs at the full retail price can be complex to explain - especially in a traditional retail environment where the CFLs appear on the shelf alongside traditional incandescent and appear to be five to 10 times more expensive, from a first cost-perspective.  However, these giveaways and subsidies have the unintended effect of "disrupting" or "polluting" the retail sales proposition for CFLs.

The fund raiser model was designed to create a delivery mechanism that leveraged non-profit community groups to explain the complex value proposition for CFLs in a direct (i.e. face-to face) sales environment to support CFL sales of a premium quality product at its full retail price without utility customer cross-subsidies.  This approach better supports customer's trail experience of the bulbs through initial purchases from the groups during a targeted 2-week sales campaign while allowing the local retailers to generate follow-on sales at their full retail price for the remaining 50 weeks of the year.