Carrier is doing the same thing. The unfortunate fact is that the first line salesmen, supervisors, branch managers, and techs are all in the same boat. They demand these astronomical margins, but the market wont support it. Like nique said, they want to do the necessary evils of Warranty and Startup, and only those "cherry" 40+% margin jobs. I heard this very same thing has happened before back in the 90's. The only problem with that theory is: When the "cherry" 40% job comes along, you have to have a mechanic left to do it. The lower margin stuff keeps your mechanics busy to keep them for these special jobs.