How to protect your margins when wholesaler prices change

Material price increases are one of the biggest threats to a contractor's profitability. You quote a job based on current prices, the client takes three weeks to sign, and by the time you order the materials, the prices have gone up. The difference comes out of your margin.

Quote with real prices, not memory

The first line of protection is to always build quotations from your actual catalogue at current prices, not from memory or last year's price lists. When your wholesaler account is connected to QuotCraft, every item you add to a quotation pulls the current price from your account. If the price changed since last week, you see the updated number.

Set a quotation validity period

State clearly on every quotation that prices are valid for 30 days. This is not about being difficult with clients. It is a normal commercial practice that protects both parties. If a client comes back after two months, you can requote at current prices.

Work with margins, not fixed prices

Instead of setting a fixed selling price for each article, work with a target margin. For example, you want 40% margin on copper fittings. When your wholesaler raises the price of copper pipe, QuotCraft recalculates your selling price to maintain the 40% margin automatically. You see the change as a margin alert and can decide whether to adjust.

Use price change alerts

QuotCraft tracks the prices of articles in your catalogue against historical data from your wholesaler. When a price increases by more than a threshold you set, you receive an alert. This lets you review any open quotations that include that article before they are signed, and add a note to the client if a price revision is needed.

Protect yourself in the contract terms

For larger jobs that take several months, include a materials price adjustment clause in your contract. This is standard practice in the construction industry and allows you to pass on documented price increases above a certain percentage. Your clients understand that copper, steel, and cable prices fluctuate. What they want is transparency.

Build a buffer on long projects

For multi-month projects, add a materials contingency to your quotation. State it as a line item: materials contingency 3%. This acknowledges the reality of price volatility while keeping your quotation competitive. Clients who understand the market will accept this. Clients who refuse may cost you money.