As a contractor or small business owner, you might have asked yourself, "Am I charging the right price for my work?" It’s a common dilemma in the home services and trades industries, where pricing is often more about guesswork than a scientific approach. Weston Zimmerman, CEO of SynkedUp, has lived this problem firsthand and now dedicates his work to helping others avoid these costly mistakes.
Turning a Common Contractor Dilemma Into a Solution
Zimmerman started his career working for a landscaping company and quickly realized that many contractors, like himself, struggled to price their work correctly. Many would base their prices on their perceived worth, competitors' rates, or what felt right emotionally.
"So many contractors price based on an emotional formula, not a mathematical one," Zimmerman says.
He learned that pricing incorrectly leads to the crushing realization that despite high revenues, profits can be shockingly low.
Now, as the CEO of SynkedUp, Zimmerman’s mission is to help small business owners in the trades solve two major problems: pricing correctly and managing resources effectively. In this article, we dive into Zimmerman's journey and the lessons he's learned to help contractors price their work profitably.
The Core Challenge: Emotional vs. Mathematical Pricing
Most contractors are experts in their craft but not necessarily in managing the financial side of their business. They often base their pricing on instinct rather than hard data. "What tends to happen is you open a business, and you're like, 'What should I charge?' You might think, 'Well, I used to make $30 an hour, so I'll charge $40,' but that's not how pricing should work," Zimmerman explains.
This emotional approach can lead to a vicious cycle: contractors work hard, build a million-dollar business, and at the end of the year, wonder why their bank account doesn’t reflect the effort. Zimmerman himself experienced this, leading him to find a better solution.
Overcoming the "Owner's Intuition" Trap
One of the major pitfalls of many contractors is that their pricing and job estimates rely on years of experience stored in the owner's head. As Zimmerman puts it, “It’s not a repeatable process.” A seasoned contractor might know that a job will take 15 tons of stone or 100 man-hours simply from experience, but there's no system to guarantee accuracy or pass that knowledge on to employees.
To solve this, SynkedUp introduces templates and production rates, turning years of experience into data that can be applied systematically. “Instead of saying it’ll take 15 tons based on experience, you calculate it by dividing the area by the material required. It’s a repeatable process that ensures accuracy,” Zimmerman emphasizes.
Solving the Math and Resources Problems
Zimmerman’s experience led him to identify two key problems contractors face: the "math problem" and the "resources problem." The math problem arises when contractors don't factor in all costs, including overhead, into their pricing. This results in pricing that might look good on paper but doesn't account for hidden expenses.
The resources problem, on the other hand, occurs when the work takes more time or materials than estimated. Even with the right price per hour, underestimating the time required for a project leads to losses. SynkedUp addresses both of these issues by providing tools that calculate prices accurately and track job performance in real-time.
"Even though your math was perfect on paper, if it took you 150 man-hours instead of 100, you still lost money," Zimmerman notes.
Automating Job Costing and Feedback Loops
One of the standout features of SynkedUp is its ability to automate job costing. Zimmerman recounts how, in the early days, job costing would take weeks to complete. By the time issues were identified, the contractor had moved on to multiple new projects, making it hard to learn from mistakes.
“With SynkedUp, job costing happens in real-time,” Zimmerman says.
“You can see immediately if a job is on track or if adjustments need to be made.”
This real-time feedback allows contractors to correct course mid-project, avoiding costly mistakes.
Building Repeatable Processes: The Key to Growth
Zimmerman firmly believes that the key to scaling a business is building systems and processes. "If you’re the only person who can do the job, you're in what I call 'entrepreneurial prison,'" he says. By implementing repeatable processes, contractors free themselves from being the bottleneck in their businesses, allowing for growth and efficiency.
One of SynkedUp’s clients, for example, reduced the time it took to price six-figure projects from several days to just 10 to 15 minutes. “Cutting time by 90% is incredibly valuable,” Zimmerman shares, highlighting the importance of investing in systems to increase profitability and reduce stress.
Implementation: The Hardest Part of Growth
While SynkedUp offers a robust solution, Zimmerman emphasizes that simply purchasing software isn’t enough. Implementation is crucial. "It’s like buying a gym membership—you only see results if you actually go to the gym," Zimmerman jokes. Contractors must commit to implementing the systems and processes to see the benefits.
SynkedUp provides onboarding experts to help with this, but ultimately, the responsibility lies with the business owner. As Zimmerman puts it, “Your ability to build systems and implement them is the thing that defines your ceiling in business.”
Key Takeaways: Thriving, Not Just Surviving
Zimmerman’s journey from landscaping foreman to software CEO is a testament to the power of solving problems with repeatable systems. His experience shows that contractors and tradespeople can move beyond merely surviving and start thriving by shifting from emotional pricing to mathematical, data-driven approaches.
By solving both the math and resources problems, and implementing job costing feedback loops, contractors can ensure that their hard work translates into actual profit. As Zimmerman says, "We're not in business to work our fingers to the bone. We're in business to thrive and provide for our families."
For contractors ready to break free from the cycle of underpricing and lost profits, tools like SynkedUp offer a clear path forward. Learn more at SynkedUp’s website and explore the resources they provide to help you get started.
Ready to Price Your Work Profitably?
If you're tired of wondering why your profits aren't matching your efforts, it’s time to take action. Visit SynkedUp to learn more about how you can automate your pricing and job costing processes. Download their free tools or book a demo to see how SynkedUp can transform your business. Don't just survive—thrive!
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