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Remember, in the services compound example at the beginning of the course, the results were based on an assumption of renewing 80% of all existing service contracts, or an 80% renewal rate. In the scenario, renewal business grew from zero to over $1 million in just four years. While overall results can vary based on margins and overall performance metrics, given that the company in the example started with a run rate of $5 million in hardware sales, the impact to sales is significant.
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