Service contract installments - example pricing

Installation group A:

• Sales Value: 100,000
• Service: Eight percent of the sales value
• Payment: 12 times annually

Installation group B - 4 x Inspections:

• Sales amount: 4 x 1000 = 4000
• Costs amount: 4 x 800 = 3200
• Payment four times annually

• A: 8,000 annually = 667 monthly
• B: 4,000 annually = 1,000 quarterly

Invoice scheme:

• January: 667 + 1,000 = 1,667
• February: 667
• March: 666
• Etc.

• A: No costs can be entered
• B: 3,200 annually = 800 quarterly

Gross Margin (GM) can only based on the following pricing methods:

• Budgeted
• Price Lists

GM in this case is: (4000 - 3200) / 4000 = 20 percent