cost is 4% of purchase price and up per month , mostly up, for parts replacement coverage. Covers replacement of parts that fail in normal use. Does not cover consumables or troubles caused by "ACT OF GOD" or customer created.
Software support is a whole different ballgame with completely different scorecard.
You realize that service contracts are insurance contracts for the customer and the company providing the coverage is an insurance company and insurance companies hardly ever lose money.
And if you look at most contracts you'll find that there are all sort of wiggle out loopholes for the service supplier.
I recommend to my customers that they put the money they would spend on maintenance contracts into the bank each month to use for repairs when they are needed and use what is left over for a year-end party. Improves employee morale.
But if one absolutely has to have one, I'll write it. Ed Fair
unixstuff@juno.com
Any advice I give is my best judgement based on my interpretation of the facts you supply. Help increase my knowledge by providing some feedback, good or bad, on any advice I have given.