I agree with ee-aa. COGS is the cost of the tools needed, parts needed, and anything directly to getting the product repaired.
What's not COGS is all your back office expense, like payroll, staffing not directly related to product repair, office rent and utilities, company picnics, and so on.
As you can imagine, there may be grey areas. You may want to review IRS Pub 334 and look at Chapter 6 (How to figure Cost of Goods Sold).
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