Maintenance contracts

[r.bartlett]

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

[lma]

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

[lma]

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]

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)