Annual Increases
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Increase ALL Recurring Revenue by 3%-4% per Year
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Include Increase in License and Service Agreements
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Not All Customers Will Allow this, But Most Will
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Covers Increased Cost of Delivering Service
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RR is 1 - 2% of Installed Equipment
Typical Revenue Due to Annual Increases
| System | Revenue | Equipment | Annual 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
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Employee raises
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Health insurance increases
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Business insurance increases
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Supplies cost increases
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Rent increases
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Intangible increases