Pricing strategy for 2025 – how are you handling material cost increases?

[Bob Tremblay]

Resin 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?

[Pete Sanchez]

We 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.

[Dale Gustafson]

Adding 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.

[Bob Tremblay]

That material adjustment clause is smart. How do clients usually react to that language?

[Dale Gustafson]

Honestly most do not even read it. The ones that do are usually commercial GCs who have similar clauses in their own contracts.

[Rick Deluca]

We raised prices across the board by 8% in November and barely lost any work. The demand is there and our margins needed it.

[Amy Chambers]

Also 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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