# Recurring service plans: pricing & operations (2026)

> A service plan is a subscription business stacked on top of the car sale. Pricing, coverage, margins and operations work fundamentally differently from one-off workshop visits. Here's the complete recipe for a profitable plan portfolio.

**Source:** https://carruslink.com/en/guides/recurring-service-plans-pricing
**Last updated:** 2026-06-01

## Short answer (TL;DR)

A recurring service plan typically costs DKK 400-900/mo depending on car, age, km/year and coverage. Gross margin sits at 25-45% when built right. The key is 3 standard packages (Basic, Plus, Premium), automatic pricing and monthly billing, not individual contracts you recalculate every time.

## Why most service plans don't scale

- Each contract is priced manually, salesperson spends 5-10 min or skips it entirely
- Margins are unknown: 'we don't know if we make money on these'
- 20+ different coverage variants, impossible to administer and impossible for the customer to understand
- One-off invoicing instead of monthly, customer doesn't perceive subscription, and you get no MRR
- Workshop doesn't know what the coverage costs you per visit
- No recalculation as the car ages and gets more expensive to maintain

## Build a profitable plan portfolio

### 1. Standardise to 3 packages

Basic (statutory service + oil), Plus (+ wear parts, tyre storage), Premium (+ valet, loaner, glass). Customer picks a package, not 12 individual add-ons.

### 2. Pricing model: age × model × km/year

3-axis matrix. New car + low km/year: DKK 400-550/mo. Older car + high km/year: DKK 700-900/mo. The system computes, the salesperson picks the package.

### 3. Lock standards, allow 10% manual room

Salesperson can't give a 40% discount 'to close the deal'. Standard price is standard. Up to 10% manual room with management approval.

### 4. Threshold-based cost per plan

Calculate expected workshop hours + parts per plan type per year. If cost > 60% of MRR, adjust price. Never a plan you lose money on.

### 5. Monthly billing as default

No one-off invoices. Direct debit or card-on-file every month. Customer sees monthly price = compares with streaming, not a big bill.

### 6. Recalculate at renewal

Every renewal is recalculated based on car's new age/km. No 'legacy' contracts becoming unprofitable 3 years in.

### 7. Measure margin per plan, not total

Report per plan type: MRR, cost (hours + parts), net margin. Show which plans win and which need redesign.

## What a mature plan portfolio gives you

- **3 packages, not 30 combinations** — Salesperson picks Basic, Plus, Premium. Customer understands. Decision in 60 sec instead of 10 min.
- **Auto-pricing in 1 sec** — System calculates from age, model, km/year. Salesperson never types a price manually.
- **MRR that grows every month** — Every new plan = new monthly revenue. A dealer selling 30 cars/mo @ 40% attach + DKK 650/mo = DKK 7,800 extra MRR/mo, growing DKK 93,600/mo every 12 months.
- **Margin you actually know** — Cost per plan computed from workshop hours + parts. You know which plans earn you 35-45%, and which to redesign.
- **Recalc at renewal** — Contracts don't become unprofitable over time, every renewal calculated on car's current age/km.
- **No salesperson discounts killing margin** — Standard price is standard. Manual room only with approval. Margin holds.

## Manual plan pricing vs CARRUSLiNK matrix

| Aspect | Manual / ad-hoc | CARRUSLiNK |
| --- | --- | --- |
| Time per quote | 5-10 min | 1 sec auto |
| Number of variants | 20+ combinations | 3 packages × matrix |
| Margin per plan known? | Rarely | Live report |
| Billing | One-off invoice | Monthly direct debit |
| Recalc at renewal | No | Auto |
| Salesperson discount that breaks margin | Often | Only with approval |

_Comparison based on CARRUSLiNK customers vs typical Danish dealer, Q2 2026._

## Frequently asked questions

### What does a recurring service plan typically cost?

In Denmark monthly price typically sits at DKK 400-900 depending on car, age, km/year and package. New car + Basic plan: DKK 400-550/mo. Older car + Premium plan: DKK 700-900/mo. Average CARRUSLiNK customers see: DKK 650/mo.

### How do I calculate gross margin on a plan?

Estimate expected workshop hours per year (typically 2-4) × your hourly rate, plus parts (oil, filters, wear items). Subtract from MRR × 12. CARRUSLiNK customers typically see 25-45% gross margin when plans are designed well.

### How many packages should I have?

3. Basic, Plus, Premium. More creates decision paralysis for the customer and admin burden for you. Each package is built as a clear standard, and the pricing matrix handles car age/km/year.

### Should I bill monthly or one-off?

Monthly. One-off creates sticker shock and no MRR. Monthly = customer compares with streaming, and your pipeline becomes predictable. Direct debit gives 95-98% payment success.

### How do I avoid giving too-large discounts?

Lock standard pricing in the system and give salespeople max 10% manual room with approval. If every rep discounts 20-30% 'to close the deal', you eat your margin.

### What do I do as the car gets older?

Recalculate at renewal. CARRUSLiNK pushes a new offer 6 months before expiry based on the car's current age/km. 70-80% renew at the new price.

## Get your pricing matrix built in 30 min

We walk through your fleet, hourly rate and coverage and build a 3-package matrix with 25-45% target margin, directly in CARRUSLiNK, ready for the next sale.

— CARRUSLiNK · https://carruslink.com/en/guides/recurring-service-plans-pricing