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Reply to "buying down service"

Lets say my service cost for color is 06 per page and I sell for .05 per page. The contract includes 10K color per year for 5 years.  That totals to 50,000 color pages and the amount is $500.00. 

That $500 is taken away from the total revenue and given to service to make it whole.  Thus if the revenue of the sale was 7,000 it now becomes $6,500

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