Supplier Increased Prices Mid-Job: What Now?
Quote clauses that protect you, how to pass costs to customers, alternative sourcing strategies, and when to absorb the hit vs renegotiate.
You quoted £3,200 for a bathroom refit. Customer signed two weeks ago. You order materials today. Supplier says: "Prices went up 15% on Monday."
Here's how to protect yourself with quote clauses, when you can pass costs to customers, and when you eat the loss to preserve the relationship.
Why Suppliers Increase Prices Mid-Job (And How Often It Happens)
Understanding supplier pricing dynamics helps you anticipate and prevent mid-job shocks:
Common Supplier Price Increase Triggers
1. Commodity price volatility
Copper, steel, timber, plastics—raw material costs fluctuate weekly. When global commodity prices spike 20%, your supplier increases prices within days (not months).
2. Manufacturer price announcements
Big brands (Ideal Boilers, Worcester Bosch, etc.) announce price changes 1-2 weeks in advance. Merchants pass increases straight through to trade customers—you find out when you place the order.
3. Currency fluctuations (imported goods)
Weak pound = imported materials cost more. If GBP drops 10% vs EUR/USD, expect 5-12% price increases on European/Asian products within 4-6 weeks.
4. Seasonal demand surges
Heating systems in October, air con in June, groundwork materials in spring—suppliers raise prices when demand outstrips supply. You're competing with every other tradesperson who needs the same stock.
5. Supply chain disruptions
Shipping delays, factory closures, port strikes—when supply tightens, prices rise. Covid, Brexit, and energy crises all caused 15-40% material cost spikes in 2020-2023.
How often it happens:
In stable markets: 2-4% annual price drift (you can absorb this).
In volatile periods: 10-30% swings within 6-12 weeks (you cannot absorb this without contract protection).
Quote Clauses That Protect You (Add These Today)
If your quote doesn't include these clauses, you're legally bound to deliver at quoted price—even if costs double:
Implementation: Add these clauses to your quote template today. Email existing prospects: "Please note, quote expires [date]. Accept within 7 days to lock in current pricing."
When You Can Pass Costs to Customer (Legal Rights)
Your ability to pass mid-job price increases depends on your contract terms and timing:
| Scenario | Can You Pass Cost Increase? | Legal Basis |
|---|---|---|
| Quote includes price fluctuation clause + customer signed | Yes | Contract allows it; customer agreed to variable pricing |
| Quote has validity period + customer accepted after expiry | Yes | Original quote expired; new pricing applies |
| Price increase happens BEFORE materials ordered | Yes | Contract not yet fully executed; you haven't incurred costs yet |
| Customer requested spec change that triggers price increase | Yes | Variation order; customer changed scope, new pricing applies |
| Quote says "fixed price" + materials already ordered | No | You're contractually bound; absorb the cost or renegotiate goodwill |
| No written quote/contract, just verbal agreement | Maybe | Legally murky; depends on customer goodwill and reasonableness |
| Increase under 5% and you quoted "approximate pricing" | Yes | Reasonable variance; courts typically allow minor adjustments |
| Increase over 20% and no protective clauses | Hard sell | Customer may argue bait-and-switch; you may need to eat loss or walk away |
The test: If your contract allows it = pass costs on. If contract silent or says "fixed price" = you're likely stuck unless customer agrees to renegotiate.
How to Renegotiate with Customer (Without Losing the Job)
Customer signed quote 3 weeks ago at £4,200. Materials now £650 more. Here's your script:
Mid-Job Price Increase Conversation Script
Step 1: Notify immediately (phone call, not text)
"Hi [Customer], I need to update you on the materials for your bathroom. I went to order them today and the supplier has increased prices significantly since I quoted you—copper pipe is up 18%, tiles up 12%. The material cost has gone from £1,800 to £2,450. I wanted to call you straight away rather than just absorb the cost and risk cutting corners."
Step 2: Show evidence (send supplier invoice/price list)
"I'm sending you the supplier's new price list so you can see this isn't me inflating costs—it's a genuine market increase. I can also show you the quote I based my original numbers on if that helps."
Step 3: Offer options (give customer control)
"Here are your options:
Option 1: We proceed with the original spec, and the revised total is £4,850 (£650 increase).
Option 2: We find alternative materials that keep us closer to the original budget—I can source similar tiles from a different range for £200 less.
Option 3: We pause the project and revisit in a month to see if prices stabilize.
Option 4: We cancel the project, and I refund your deposit in full (no hard feelings).
What feels right for you?"
Step 4: Absorb part of the cost (if customer is reasonable)
"I appreciate this isn't ideal. To meet you halfway, I'm willing to absorb £150 of the increase myself—so the revised total would be £4,700 instead of £4,850. That's me taking a margin hit to keep the job moving and maintain our relationship. Does that help?"
Step 5: Lock in the new price (written confirmation)
"Great, glad we could work this out. I'll send a revised quote for £4,700 showing the material breakdown. Once you approve via email or text, I'll order everything today to lock in current pricing. Sound good?"
Key principle: Transparency + options + shared sacrifice = most customers accept revised pricing. Hiding the increase or demanding full pass-through = friction and cancellations.
Alternative Sourcing Strategies (When Supplier Prices Spike)
Before accepting supplier price increases, explore these alternatives:
| Strategy | How It Works | When to Use |
|---|---|---|
| Multi-supplier quotes | Get quotes from 2-3 suppliers; play them off each other for best price | High-value material orders (£500+); time permits 24-48hr delay |
| Alternative brands/models | Swap Worcester for Vaillant, Ideal for Baxi—same spec, different brand, lower cost | Customer spec isn't brand-locked; functional equivalents available |
| Direct manufacturer purchase | Buy direct from manufacturer (bypassing merchant markup) for large orders | Orders over £2K; you have trade account with manufacturer; can wait for delivery |
| Stock from alternative region | Check merchants in neighboring towns/cities—regional pricing varies 5-15% | Significant order (£1K+); you can collect or arrange courier |
| Substitute materials (customer approval) | Porcelain tile instead of ceramic, laminate instead of engineered wood, etc. | Budget-conscious customers; aesthetic outcome similar |
| Ex-display / clearance stock | Scratch-and-dent, end-of-line, ex-showroom stock at 20-40% off | Customer accepts minor imperfections; availability matches your timeline |
| Buy in bulk (future jobs) | Order 10× copper coils instead of 2—lock in current price, use across multiple jobs | Commonly used materials; cash flow permits upfront investment; storage available |
Pro tip: Build relationships with 3-4 suppliers per material category. When one spikes prices, you have alternatives. Single-supplier dependence = price hostage.
When to Absorb the Cost (vs When to Fight It)
Not every price increase is worth passing to the customer. Use this decision tree:
Absorb vs Pass-Through Decision Matrix
ABSORB the cost if:
- Increase is under 3% of total job value (£90 on a £3,000 job—not worth the friction)
- Customer is a repeat client (£5K+ annual spend—protect the relationship)
- You quoted "fixed price" explicitly (contractually bound, eat the loss)
- Price increase is your fault (you delayed ordering materials beyond validity period)
- This is a portfolio/testimonial job (marketing value exceeds margin hit)
- Job is 80%+ complete (too late to renegotiate, just finish it)
PASS THROUGH the cost if:
- Increase exceeds 5% of job value (£200+ on £4,000 job—material to profit)
- Contract includes price fluctuation clause (legally permitted, customer agreed)
- Customer delayed project start (their timeline, their risk)
- Price spike is industry-wide (everyone's passing it on, customer can verify)
- Materials not yet ordered (you haven't incurred cost yet, can still walk away)
SPLIT the cost if:
- Increase is 3-8% of job value (£120-250 on £3K job—negotiable range)
- Customer is reasonable but budget-constrained (good relationship, worth compromise)
- Your quote was borderline valid (e.g., 32 days old when you said 30-day validity)
- You want to preserve goodwill (absorb 40-50%, customer pays 50-60%)
Rule of thumb: Small increases (under £100) = absorb. Large increases (over £300) = pass through. Middle ground = split it.
The Verdict: Protect Future You with Contract Clauses
Supplier price increases will happen. The question is whether you're protected.
Here's your protection system:
- 1. Add protective clauses to all quotes – Validity periods, price fluctuation clauses, material substitution rights
- 2. Take deposits that cover materials – 40-50% upfront = you order immediately, lock in pricing
- 3. Order materials fast after quote acceptance – Don't wait 3 weeks; order within 48 hours
- 4. Notify customers immediately if prices spike – Don't hide it until invoice time; call them same day
- 5. Offer options, not ultimatums – Alternative materials, cost-sharing, timeline flexibility
- 6. Absorb small hits, pass through large ones – Under £100 = goodwill; over £300 = business survival
The businesses that lose profit on supplier price increases are the ones with no contract protection. The ones that stay profitable? They build price fluctuation clauses into every quote, take deposits, and order fast.
Protect yourself legally before prices spike. Renegotiate transparently when they do.