Contract negotiations for newbuilds are cutthroat, the most important parameter being price, price and price. Hence margins are as you'd expect.

Except when it comes to service work, as service rates, parts cost &c are hardly ever touched upon in contracts, probably seeing as they will be relevant for the lifetime of the product, which may run for decades.

Hence the contract merely states that the supplier must _provide_ service and parts. Which we do. While we laugh all the way to the bank.

Of course, if you become too greedy, a customer is likely to start sourcing any parts not uniquely made by you elsewhere and try to have whoever they can find locally install them. Hence some sobriety is useful when determining service rates and parts markup, but the general principle is:

You do newbuilds so that you can get a large installed base to reap service income from. Newbuilds are sold at the slimmest of margins, sometimes even at a loss. You'll recoup it when they start using the gear, anyway.