Well eddie I have ben involved in selling big ticket hardware for 25 years. Our GP is 60%. I would bet you do not understand what true GP is and you are either looking at it from a salesmans standpoint and not the financials. If you are looking at the financials are only the selling expenses related to selling the product charged or are all the general overhead expenses chraged to the selling expense/ different ways to come up with the number for different accounting purposes with in a company. In DanS example above a 33-35% GP on a belended parts and service op is the lowest I have ever seen. Thats $350 max GP on a million in sales. I do not know the shop rates in his business but I have yet to see a service shop rate below $100 to 150 per hour for any similar product that would also mean a fully loaded burden rate of over $70 -$100 an hour which is out of this world unless you are working out of Bill gates home:-)