Pricing Shift: The Difference Between Staying Busy and Staying Profitable
A pricing shift can completely transform the financial health of a contracting business. While many contractors focus on winning more work, the real challenge is ensuring that every project is priced correctly and contributes to profitability.
In a recent episode of Business Success Tips, Paul Sandeman, founder of Contractor Staffing Source (CSS), interviewed Weston Zimmerman, founder of SynkedUP. Contractors looking to learn more about the software can visit:
Their conversation highlighted why accurate estimating, job costing, and overhead recovery are critical for long-term success.
The Story Behind SynkedUP
Zimmerman’s journey began in the landscaping industry. Starting as a teenager at Tussey Landscaping, he eventually worked his way into project management, marketing, and business operations.
As the company grew, they found themselves juggling multiple software platforms to handle scheduling, estimating, invoicing, and project management. None of the available solutions provided everything they needed under one roof.
That frustration led to the creation of SynkedUP, a platform designed specifically for contractors who need accurate estimating and real-time job tracking.
Today, SynkedUP serves contractors throughout North America and helps them implement a pricing shift that improves profitability through better data and smarter estimating.
Why Most Contractors Need a Pricing Shift
Many contractors calculate estimates using labor, materials, and equipment costs but overlook expenses such as:
- Overhead recovery
- Insurance premiums
- Equipment depreciation
- Administrative costs
- Unbillable labor
- Office expenses
These hidden costs often eat away at profits without contractors realizing it.
According to the U.S. Small Business Administration, understanding overhead and operating expenses is critical for long-term profitability.
Zimmerman explained that before sending any proposal, contractors must understand their break-even point. Without knowing those numbers, it’s easy to underprice projects in an effort to win work.
The pricing shift comes from moving away from intuition and toward accurate financial calculations.
Turning Experience Into Repeatable Systems
Most experienced contractors have a strong sense of how long projects should take.
The challenge is scaling that knowledge.
Zimmerman recommends converting experience into repeatable estimating templates and production rates.
For contractors seeking additional business mentoring and operational guidance, SCORE offers free resources and coaching for small business owners at:
Once documented, those benchmarks become valuable business assets that improve consistency and estimating accuracy.
Why Real-Time Job Tracking Matters
Even the most accurate estimate can be affected by unexpected conditions.
Contractors deal with:
- Weather delays
- Site access issues
- Material shortages
- Rock excavation
- Customer changes
The key is identifying problems before they destroy profitability.
SynkedUP allows crews to track time directly from the field using a mobile app. Business owners can compare estimated labor hours against actual labor hours in real time.
Many contractors also integrate operational software with accounting systems such as QuickBooks to improve reporting and visibility. Learn more at:
This visibility helps contractors make better decisions while the project is still underway rather than after it’s completed.
Data Beats Gut Instinct Every Time
One of the most valuable lessons from the podcast was the importance of replacing gut feelings with measurable data.
Historical job costing data provides:
- Labor benchmarks
- Material consumption trends
- Production rates
- Profitability analysis
- Better forecasting
Contractors interested in learning more about job costing best practices can review educational resources from AccountingTools.
The more data contractors collect, the more accurate their future estimates become.
The Bank Account Isn’t a Financial Dashboard
A common mistake among contractors is judging business performance solely by checking account balances.
Zimmerman referred to this as the “bank account barometer.”
Without understanding work-in-progress (WIP), job costing, and accrual accounting, contractors may miss financial problems until it’s too late.
The SBA provides useful guidance on cash flow management and financial forecasting for small businesses at:
Helping Craftsmen Become Entrepreneurs
Implementing software can be difficult for contractors who are experts in their trade but not necessarily in technology or accounting.
That’s why SynkedUP emphasizes hands-on onboarding and customer support.
Every customer receives assistance from a dedicated Customer Success Manager who helps configure workflows, build budgets, and understand financial metrics.
Final Thoughts
The most important takeaway from this conversation is simple:
A pricing shift isn’t about charging more. It’s about charging correctly.
Contractors who understand their overhead, monitor job performance, and use real-time data are far more likely to build profitable, sustainable businesses.
Whether you’re a one-truck operation or managing multiple crews, implementing a pricing shift can help you increase profitability, improve forecasting, and make smarter business decisions.
