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Annual Increases

  • Increase ALL Recurring Revenue by 3%-4% per Year
  • Include Increase in License and Service Agreements
  • Not All Customers Will Allow this, But Most Will
  • Covers Increased Cost of Delivering Service
  • RR is 1 - 2% of Installed Equipment

Typical Revenue Due to Annual Increases

SystemRevenueEquipmentAnnual Inc. (1%)
Small$10 K$5 K$50/Yr.
Medium$50 K$25 K$250/Yr.
Large$500 K$250 K$2.5 K/Yr.
Very Large$2 M$1 M$10 K/Yr.
Enterprise$10 M$5 M$50 K/Yr.
Global$50 M$25 M$250 K/Yr.

Reasons for Annual Increases

  1. Employee raises
  2. Health insurance increases
  3. Business insurance increases
  4. Supplies cost increases
  5. Rent increases
  6. Intangible increases

Notes