03 Jun Tariffs, Pricing Pressure, and the Power of Positioning
Posted at 17:53h
in Insights
Tariffs, Pricing Pressure, and the Power of Positioning
In an industry where costs can change overnight and customer expectations shift just as fast, every pricing decision sends a message. Recently, Home Depot made headlines by announcing it won’t raise prices despite steep new tariffs on steel and aluminum. For contractors, builders, and service providers, the ripple effect could be more than financial — it’s a test of how well your business is positioned, perceived, and prepared to respond.
Home Depot Isn’t Raising Prices — But What Does That Mean for other Building Material Suppliers?
Home Depot recently announced that it won’t pass increased tariffs on materials like steel and aluminum down to consumers — even as those tariffs double to 50%. (NBC News)
It’s a headline that caught the attention of more than just economists. For those in the building and home services industries, this decision could have real implications — not just on the cost of materials, but on customer expectations, vendor relationships, and even how we position our businesses.
Will Others Follow Suit?
- Lowe’s and Menards haven’t publicly responded yet.
- Ace Hardware has said they’ll eventually pass costs on to protect margins — though for now they’ve locked in pre-tariff pricing.
- Local suppliers are already scrambling to buy inventory ahead of price increases.
Which means: we’re likely to see a mixed bag when it comes to material costs in the coming months. So the question becomes…
What Does This Mean for Contractors, Builders, and Trades?
If you’re in roofing, electrical, plumbing, custom builds, or renovations, here’s how this may hit you:
- Customers will expect stable pricing — because they’ll hear that “Home Depot isn’t raising prices.”
Even if your suppliers do raise prices (and many likely will), your customers may not understand the nuance — especially since Home Depot probably isn’t supplying the bulk of your materials, nor is it always a viable option for your specific needs. - You may face margin pressure — especially if your competitors hesitate to adjust their prices.
Holding your pricing steady might be good for optics, but bad for business — unless you can clearly communicate your value. - There’s a branding moment here — and most of your competition will miss it.
Our Take as a Brand Agency for the Trades
At Barrett Reynolds, we work with builders and service providers across the home industry. Here’s our perspective: Now is the time to lead with clarity.
You don’t have to match Home Depot’s pricing stance. But you do need to help your customers understand why your prices are what they are — and why your service is worth it.
This is where brand positioning earns its keep.
- Transparency builds trust.
- Clear messaging defuses pricing objections.
- A strong brand gives you pricing power — even in uncertain markets.
If you’ve been putting off defining your messaging, updating your website, or creating sales materials that actually sell, this is your cue. The market is shifting. Perceptions are shifting with it.
Now is the time to lead with clarity.
Final Thought
Whether prices rise or not, the way you talk about your value — and the experience you deliver — will be the difference between a busy season and a slow one.
At Barrett Reynolds, we help contractors and home service pros build brands that can weather price hikes, economic shifts, and whatever comes next.
If you want to get ahead of the curve — before others do — let’s talk.
Franck, Thomas. “Home Depot Says It Doesn’t Plan to Raise Prices Despite New Tariffs on Chinese Goods.” NBC News, 16 May 2024
https://www.nbcnews.com/business/economy/home-depot-doesnt-plan-tariff-price-hikes-rcna207898