Step 1: Service Creation

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Let's start off by creating a generic service.  This service will represent a generic product with a few obvious upgrade options.  Under Setup & Admin, select Service Plans:

 

 

 

Select Add New Service Plan.  Here are the configuration screens for my product - an automobile.

 

 

And the upgrade options:

 

 

We can see that the service has been created:

 

 

Our second item, will be a truck - it will have similar options, so I simply select "Copy" as seen in the previous screenshot, rename it, edit the price and we're done.