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Annual Increases

Making the Case for PSaaS step 16 of 18
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  • 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

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

  1. Employee raises

  2. Health insurance increases

  3. Business insurance increases

  4. Supplies cost increases

  5. Rent increases

  6. Intangible increases

Notes