Pages App and Navigation

I have managed to create master page templates, I have also managed to create sub-level menus using navigation templates. However I just cannot get the level 2 menus to show.

I have this in my navigation template:

<?php perch_pages_navigation(array( 'from-path' => '/services', 'levels' => 2, 'hide_extensions' => true, 'template' => array('submenu-level-1.html', 'submenu-level-2.html') )); ?>

I have created a hard coded master menu, then used Pages to add a sub level page then a page below that as a test.

However the sub level does not display and is not there in the output html.

What am I doing wrong? Is there a step by step procedure?