Nailed by Costs: How Contractors Can Handle Price Hikes

And Beat Cheap Bids & Keep Work Coming In

For builders, remodelers, and trades in Northern Nevada & Eastern California

You’re Not Crazy — Everything is More Expensive

Your last trip to the lumber yard or your supplier has been a little scarry. Prices are up and you can feel the pinch. Will they come down anytime soon? Probably not.

Recent tariffs, tax cuts, and other economic drivers have seen construction material prices increase. Steel, copper, drywall, concrete … you name it … it’s more expensive. The government added tariffs – extra taxes – on things we import means everyone pays more. Even if eggs and gas are cheaper, you’re paying more for most construction materials, tools, and equipment.

New tariffs are due to become active very soon … Today is July 30, 2025. This means that the cost of these extra taxes on materials will get passed onto you. And you in turn will have to pass them onto your client. Or suffer loss.

These may also mean that homeowners and other’s who hire construction professionals may hold off on new projects. So what can you do to lessen the loses?

What this means for Your Jobs

• You bid a job last month, and now the materials cost more than you quoted.
• You’re fronting more cash to get started, but clients still want to pay slow.
• You’re losing jobs to guys who underbid and cut corners.
• You’re working harder for less.

Sound familiar?

Are you ready for growth? Get Help navigating marketing to get More Clients – Call for a Strategy Session … it’s Free.

What Can You Do About Rising Prices & Cheap Competition?

1. Talk to Your Clients—Early and Honestly

• They’re aware that prices are changing fast. But you’ll go the extra mile to find any cost savings within your quality standards.
• Most homeowners don’t know what’s going on behind the scenes in construction. If you explain it right, they’ll respect you for being upfront. For instance: “Hey, I want to give you the best work I can. But materials are going up every month. I’ll walk you through the options so we can stay on budget.”
• You might have to add an “Escalation Clause” for materials raising above 10% from the date of signing of the contract. You should ask your attorney about adding this to your contracts.
• Make your clients part of the decision making process without cutting any corners or giving up your integrity.

2. Give Them Choices

• Offer two options. For instance, a baseline quality equipment/appliance option or upgraded equipment/appliance option.
• Different materials that still meet code requirements.
• A phased project approach spread over a predefined timeline. Spread the payments and work completion over a longer period. Might mean a scheduling adjustment for all jobs but it might get the signed contract.

3. Stay on Top of the Trends

• Read newsletters from reliable sources … Like National Association of Home Builders – NAHB
• Read blog posts like this one from NAHB “How Tariffs Impact Home Building Industry”.
• And this one on “Framing Lumber Prices” Jul 28, 2025
• And The Builder News from Builder & Developer magazine
• And one more from Construction Executive Features articles

4. Beat Cheap Bids with Better Service

• Be reliable. Use the tools of admin management like scheduling calendars, answering service or personnel, follow up sequence…
• Communication skills are crucial to winning more bids. Be open and honest.
• Proof…make sure your website shows testimonials, case studies of recent solutions, and clear list of the types of services you offer.

5. Network and Stay Visible in Good Times and Bad

• Keep Local Directories up to date … Google Business Profile, Facebook Business Page, Local Chamber of Commerce
• Local Past Client Testimonials are published on your website.
• Case studies of past problems you have solved build trust

No matter where you stand on tariffs and other political factors, keeping your edge sharp and in the game through active steps can mean the difference between thriving and having to downsize your construction operations. Keep your marketing plan alive and active and seek client testimonials every time.

And don’t be afraid to ask for help. There are free or near free services available through the SBA – Small Business Administration and Small Business Development Centers. And don’t forget about SCORE Mentors.

Please visit CharleyBlue Designs Marketing for more info about web design and other marketing service.