Extended Care Pricing Validation

Date: Feb 17, 2026
Status: ✅ VALIDATED - Pricing approved based on actual experience

Historical Data (Hundreds of Deployed Systems)

Command Center claims: 0
Approach: Fix/refurbish instead of replace
Typical repair cost: ~$200-500 (estimate)
Replacement cost (avoided): $2,300

ZTAGGER COGS: $40 landed cost/unit (confirmed)

Margin Analysis

1-Year Plan ($930)

Max cost: 6 units × $40 = $240
Profit at 100% utilization: $690 (74% margin)
Verdict: ✅ STRONG

3-Year Plan ($2,500)

Avg annual: $833/year
Max cost/year: 6 units × $40 = $240
Profit at 100% utilization: $593/year (71% margin)
Verdict: ✅ STRONG

5-Year Plan ($4,000)

Max ZTAGGER cost: 30 units × $40 = $1,200
Launch Pack budget: ~$500
CC repair budget: ~$500 (if needed, historically 0%)
Support/shipping budget: ~$1,800 over 5 years
Profit at max utilization: $2,300 - $500 - $500 = $1,300 (33% margin)
Profit at 50% utilization: $2,800 - $500 - $250 = $2,050 (51% margin)
Verdict: ✅ STRONG (CC risk eliminated by historical data)

Risk Mitigation

Training requirement: Reduces user-error incidents
Expected outcome: <50% utilization (3 claims/year vs 6 max)
CC repair-first: Avoids $2,300 replacement cost
Historical validation: 0 CC claims out of hundreds of systems

Revenue Expansion Opportunity

Target customers:

Districts with >10 sites on standard tier
High engagement customers
Districts requesting training

Value proposition:

Peace of mind (up to 6 replacements/year)
Launch Pack included (5-Year)
Command Center coverage (5-Year)
Priority support

Margin quality: All three tiers profitable even at max utilization

Conclusion

Current pricing ($930 / $2,500 / $4,000): ✅ APPROVED

No adjustments needed. Pricing validated by:

Actual COGS data ($40/unit)
Historical CC claim rate (0%)
Repair-first approach (cost avoidance)
Strong margins across all tiers (33-74%)

Next step: Push Extended Care adoption to high-engagement districts.