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so Gary lets start big picture what are the considerations that we all need to consider when were starting a service agreement pricing program sure first consideration is am I going to be breakeven pricing or am I going to be priced for profit so the idea of margin making money pricing it so that theres an acceptable gross profit percentage there to cover up the overhead of the department is one way to do it the other way to do it its more of how we do it in our company is breakeven so weve calculated our cost structures how were going to pay the guys so the combination of the cost of goods sold plus the overhead of the maintenance division gives me a cost breakeven lets call that fifty dollars per maintenance calls so if we do two calls thats $100 breakeven so 101 dollars would be more than just $1 over breakeven so the first consideration is hey philosophically Who am I what do I want to do break-even gives me an opportunity to generate more agreements pricing for margin give
