A price list update in the inbox
In January you quoted a large patio in Indian sandstone. The customer accepted in February, and you start in May. In April the merchant sends a new price list. Sandstone is up, so is sub-base, and the delivery charge has changed. The job goes ahead at the quoted price, and the margin you planned has shrunk.
Nobody looked at the price list closely. Three other accepted jobs used the same stone. The new quotes going out this week still use January's prices, because the quote template was never updated.
Why price changes catch you out
The gap between quoting and buying is long in landscaping, especially for jobs booked in winter for spring. Merchant prices change during that time. Keeping track is dull and relies on someone comparing price lists with quotes by hand.
- Price lists arrive as PDFs or spreadsheets and are not read closely.
- Quote templates hold old prices.
- Nobody knows which accepted jobs use which products.
- Invoices at higher prices are paid without comparison to what was quoted.
- Quotes do not state how long prices are held, or the terms are not applied.
What the price drift costs
Each accepted job using a product that went up loses margin. New quotes on old prices win work that is underpriced from the start. And without a record, there is no basis for a conversation with a customer or merchant, or for deciding whether to buy stock early for jobs you know are coming.
The problem is sharpest on natural stone, porcelain and specialist products, where prices can move more than aggregates, and on long jobs where materials are bought in stages. It is also where a landscaping firm usually has least visibility, because the quote was written by the owner months earlier and the materials are bought by whoever is placing the order that week.
The price tracking we build
- Merchant price lists and quotations are read automatically when they arrive by email, and product prices are updated in your materials list. A person checks items the system is unsure of.
- Merchant invoices are read too, so the price you actually paid is recorded.
- Each quote records the materials and prices it used, so the system knows which jobs use which products.
- When a price rises, accepted but unstarted jobs using that product are listed with the effect on their margin.
- The owner decides what to do: buy early, talk to the merchant, or accept the change. Your quote terms on price validity are shown alongside.
- New quotes always use current prices, and quotes nearing the end of their validity period are flagged.
| Event | What happens |
|---|---|
| New merchant price list | Materials list updated, changes shown |
| Price rise on a quoted product | Exposed jobs listed with margin effect |
| Invoice at a higher price | Flagged against the price expected |
| New quote | Uses current prices |
| Quote validity ending | Flagged to the owner |
What your quote terms say about price changes is a business and legal question for you and your adviser. The system applies whatever terms you set.
What you can see now
When a price list lands, you know within the day which jobs it affects and by how much. You can buy early for a big job, discuss price with the merchant using real volumes, or adjust the next quotes. And your new quotes stop being priced on last season's numbers.
Are prices moving under you?
- Merchant price lists are filed without being read.
- Quotes use prices from months ago.
- You have found out about a price rise from an invoice.
- Nobody can list which jobs use a particular stone.
- Your quotes do not say how long prices are held.