Home › Community Forum › Contractor Talk › Pricing strategy for 2025 – how are you handling material cost increases?
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January 5, 2025 at 8:00 am #2704
Bob Tremblay
MemberResin and iso prices have been creeping up again. I have been absorbing some of it to stay competitive but it is getting tight. How are other contractors handling pricing?
January 5, 2025 at 10:30 am #2705Pete Sanchez
MemberWe switched to material cost plus markup model instead of fixed-price per board foot. That way when prices fluctuate we are protected. Clients get a quote good for 30 days.
January 6, 2025 at 9:00 am #2706Dale Gustafson
MemberAdding a material adjustment clause to our contracts. Anything over a 5% price increase from quote date gets passed to the client. Most commercial clients understand this.
January 6, 2025 at 2:00 pm #2707Bob Tremblay
MemberThat material adjustment clause is smart. How do clients usually react to that language?
January 7, 2025 at 8:15 am #2708Dale Gustafson
MemberHonestly most do not even read it. The ones that do are usually commercial GCs who have similar clauses in their own contracts.
January 7, 2025 at 11:30 am #2709Rick Deluca
MemberWe raised prices across the board by 8% in November and barely lost any work. The demand is there and our margins needed it.
January 8, 2025 at 9:00 am #2710Amy Chambers
MemberAlso worth considering: locking in material orders when prices dip. We bought a 6-month supply last spring when prices were lower. Saved us considerably.
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