View Full Version : Maintenance contracts
r.bartlett
02-09-2010, 07:14 AM
Out of the new installs what would be an acceptable return for a maintenance contract.
We expect around 50% of new installs take up a maintenance contract after completion.
What is the industry average -is there somewhere I can find that figure out?
We welcome comment
As a baseline: I would start with the cost of equipment evenly spread over say 5 to 10 years... and work out my costing from there
i.e a percentage of the write down value of the equipment per year from an accounting perspective would in my opinion be acceptable
r.bartlett
14-09-2010, 07:28 AM
i.e a percentage of the write down value of the equipment per year from an accounting perspective would in my opinion be acceptable
This is not about the value of the contract -rather the amount of maintenance contracts taken up after new installs against those customers who refuse to take a maintenance contract out.(for whatever reason)
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