Boosting Profitability: Weston Zimmerman's Tips For Contractors Key Insights and Action Steps
In a recent podcast episode, Weston Zimmerman, co-founder of Synked Up, shared invaluable insights into the landscaping industry. His journey from a 16-year-old landscaper to running a successful software company offers lessons that can help contractors and landscapers alike. Here are the main points from the discussion and actionable steps you can take to improve your business.
Key Insights
1. Understanding Overhead Recovery
One of the biggest challenges in the landscaping industry is understanding and managing overhead recovery. Many contractors can estimate the direct costs like labor and materials but struggle with indirect costs such as insurance, marketing, and equipment depreciation. Weston emphasized the importance of knowing your numbers to ensure that your pricing covers both direct and indirect costs, leaving room for profit.
2. The Importance of Job Costing
Job costing is crucial for understanding where your estimates and actual costs diverge. By tracking labor, materials, and other resources, you can identify inefficiencies and make necessary adjustments. Weston shared how using software like Synked Up can automate this process, providing real-time feedback and making it easier to stay on top of your numbers.
3. Speed and Accuracy in Estimating
Slow quote turnaround times can lose you more jobs than high prices. Weston highlighted the power of using templates and production rates to speed up the estimating process. This not only saves time but also ensures accuracy, making it easier to win jobs and maintain profitability.
4. Confidence in Sales
Confidence in your pricing and services is key to successful sales. Weston advised against negotiating on price and instead suggested negotiating on scope. This approach helps maintain profitability while still meeting the client's budget.
Action Steps
1. Build a Comprehensive Budget
Start by building a comprehensive budget that includes all your direct and indirect costs. Use this budget to determine your pricing. If you're unsure where to start, consider using software like Synked Up to simplify the process. This will give you a clear understanding of what you need to charge to be profitable.
2. Implement Job Costing
Make job costing a regular part of your business process. After each job, review the actual costs versus the estimated costs. Identify any discrepancies and understand why they occurred. This will help you make more accurate estimates in the future and improve your overall efficiency.
3. Develop Templates and Production Rates
Invest time in creating templates and production rates for your most common jobs. While this may seem time-consuming initially, it will save you countless hours in the long run. These templates will allow you to generate accurate quotes quickly, improving your chances of winning jobs.
Conclusion
Weston Zimmerman's journey and insights offer a roadmap for landscapers looking to improve their business operations. By understanding overhead recovery, implementing job costing, speeding up the estimating process, and maintaining confidence in sales, you can unlock new levels of profitability. Start by building a comprehensive budget, implementing job costing, and developing templates and production rates. These steps will set you on the path to success in the landscaping industry.
Resources:
Join my free Facebook group for Contractors: https://www.facebook.com/groups/contractorprofitblueprint
Free Sales Guide: https://theprofitclub.hammerandgrindpodcast.com/sales-training-optin
Profit Journal: https://www.lulu.com/shop/brad-huebner/profit-journal/paperback/product-ype4j9.html?q=profit+journal&page=1&pageSize=4
Direct Links:
SynkedUP's freebie tools
SynkedUP's demo
Event in Dayton OH (Use sign-up code PROFIT for $100 off)
https://synkedup.com/contractor-summit/%C2%A0
Weston's LinkedIn account
