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Distributors

How should an electrical distributor tell contractors about a manufacturer price increase?

Short answer

As soon as a manufacturer announces an increase, work out which product lines are affected and which contractors buy them. Then tell those contractors early and plainly — what’s changing, when it takes effect and what it means for their open quotes and orders — and give them their options, such as ordering before the effective date. Update your own price files and quotes on time, and follow up with your biggest accounts personally.

Why telling them early matters

Contractors quote jobs weeks or months before they buy the material. A price increase they didn’t see coming can wipe out their margin on a job they’ve already won. A distributor who warns them early helps them protect that margin — and earns trust that outlasts any single order.

Step 1: Understand what’s changing

When the manufacturer’s notice arrives, record:

  • Manufacturer and product lines affected
  • How much prices are changing — by line where it differs
  • Effective date
  • Anything else that changes — terms, minimums, or quote and order cut-off dates

Step 2: Work out who’s affected

  • Contractors who buy the affected lines regularly
  • Open quotes that include affected products
  • Active projects where the contractor will keep buying those products
  • Special pricing agreements that cover affected products — check whether they’re affected too

Step 3: Tell them early — and plainly

A good notice is short and factual:

  • What’s changing: manufacturer, product lines and the size of the increase
  • When: the effective date
  • What it means for them: how it affects their open quotes and orders
  • Their options: order before the effective date, ask for updated quotes, or talk to their sales rep about project pricing
  • Who to contact with questions

Avoid invented urgency. If the increase is real and dated, the facts are enough.

Step 4: Use the right channels

  • Email to buyers and estimators at every affected contractor
  • Personal calls from outside sales for your largest accounts and active projects
  • Counter notices at the branch
  • Your website or customer portal, if you have one

Step 5: Get your own house in order

  • Update price files so the new prices apply from the effective date — not before, not after.
  • Review open quotes that will expire or need requoting.
  • Brief your team — counter, inside and outside sales — so everyone gives the same answer.
  • Check special pricing agreements and request updates from the manufacturer where needed.

Step 6: Follow up

  • Follow up with contractors who have open quotes or active projects.
  • Note who ordered ahead and who asked for requotes.
  • Track questions that come up, so the next notice answers them in advance.

Common mistakes

  • Waiting until the effective date to tell anyone
  • Sending the same notice to every customer, whether or not they buy the affected lines
  • Being vague about the effective date or which products are affected
  • Using pressure tactics instead of facts
  • Updating customer notices but not your own price files, or the other way round
  • Forgetting open quotes and active projects

Frequently asked questions

How much notice should we give contractors about a price increase?

As much as you can. Tell affected contractors as soon as you have the manufacturer’s details, so they have time to act before the effective date.

Should we honor quotes issued before the increase?

Follow the validity terms on each quote, and be clear about them. Tell contractors which open quotes are affected and when they expire.

Should every customer get the same notice?

No. Send it to contractors who buy the affected product lines, and tailor it for key accounts and active projects.

What should a price increase letter include?

The manufacturer and product lines affected, the size of the increase, the effective date, what it means for open quotes and orders, the contractor’s options and who to contact.

What if the manufacturer announces another increase soon after?

Send a new, separate notice with the new details, and make clear how it relates to the previous one.