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Logitree offers a flexible, yet easy-to-use
formula that gives you a prepayment discount proportional to your needs.
This discount formula offers a discount for labor-intensive solutions of up to
25% for customers who are able to make one-time pre-purchases of labor blocks,
and up to 50% for customers who are able to make a contractual commitment to recurring monthly pre-purchases.
Your discount rate for one-time pre-purchases can
be determined by specifying the number of hours that will be purchased in
advance:
| Pre-purchased
Hours, H |
Discount Rate,
R |
| 1 - 20 |
$97/hr |
| 21 - 60 |
$94/hr |
| 61 - 140 |
$88/hr |
| 141 + |
$75/hr |
Here are some examples:
If your solution requires a Logitree technician
for the number of hours, H, of...
-
40 hours: your discount rate, R, would
be $94/hr. Your prepayment of $3,760 for this labor block saves you $240
-
176 hours: your discount rate,
R,
would be $75/hr. Your prepayment of $13,200 for this labor block saves you
$4,400
-
40 hours this month and 80 hours in
3 months. You could split this into a purchase of 40 hours now for $3,760
at a rate of $94/hr and 80 hours later for $7,040 at a rate of $88/hr, resulting
in a total of $10,800, saving you $1,200. Or you could purchase all 120 hours
now for $10,560 at a rate of $88/hr, saving you and additional $240.
If you are able to make the contractual commitment
to pre-purchase monthly labor blocks, you may apply an additional discount, from 2% to 33%
off the standard rate, S = $100/hr, equal to the number of consecutive months,
M, you
commit to purchase a given range of hours, H.
Here are some examples:
If your solution requires a Logitree technician
for...
- 10 hrs/mo for 2 years: your discount
rate, R, would be $97/hr, less 24%, = $75/hr. Your contractual commitment to
prepaying $750/mo for 24 consecutive months, combined with your first
prepayment of $750, secures this discount rate, saving you $250/mo.
- 21 hrs/mo for 3 years: your discount
rate, R, would be $94/hr, less the maximum discount of 33%, = $63/hr. Your
contractual commitment to prepaying $1,323/mo for 30 consecutive months,
combined with your first prepayment of $1,323, secures this discount rate,
saving you $777/mo.
|
Pre-purchased Hrs/mo, H |
If you wish to specify a discount rate,
R (between $95/hr and $50/hr), you can calculate the acceptable commitment length,
M for the various ranges of hrs/mo
pre-purchased to qualify for that rate: |
|
Formula for Months, M |
For
example, if you wish to receive a discount rate, R, of... |
|
$85/hr |
$72/hr |
$60/hr |
| 1 - 20 |
M=100*(97-R)/97= |
12 months |
26 months |
N/A ($65/hr
min) |
| 21 - 60 |
M=100*(94-R)/94= |
10 months |
23 months |
N/A ($63/hr
min) |
| 61 - 140 |
M=100*(88-R)/88= |
3 months |
18 months |
32 months |
| 141 + |
M=100*(75-R)/75= |
N/A ($75/hr
max) |
4 months |
20 months |
|
Pre-purchased Hrs/mo, H |
If you wish to specify a number of consecutive
months, M (between 2 and 33), that you would like to make a commitment to
pre-purchase, you can calculate the resulting discount rate, R, for the various ranges of hrs/mo
pre-purchased: |
|
Formula for Discount Rate, R |
For
example, if you wish to make a commitment to pre-purchase M months... |
|
12 |
24 |
33 + |
| 1 - 20 |
R=97-(97*M/100)= |
$85/hr |
$74/hr |
$65/hr |
| 21 - 60 |
R=94-(94*M/100)= |
$83/hr |
$71/hr |
$63/hr |
| 61 - 140 |
R=88-(88*M/100)= |
$77/hr |
$67/hr |
$59/hr |
| 141 + |
R=75-(75*M/100)= |
$66/hr |
$57/hr |
$50/hr |
When you have arrived at a suitable combination of
values for H, M, and R, please complete this contract (.rtf format)
and
submit it as an e-mail attachment.
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