In the building materials industry, pricing is no longer a back-office function—it’s a leadership imperative. With raw material costs fluctuating, supply chains tightening, and contractor budgets under pressure, how a company handles pricing during market volatility can define its success or failure.
And while data, tools, and teams are critical, it’s leadership that ultimately determines whether a pricing strategy is reactive or resilient.
Here’s how strong leadership shapes, guides, and enforces pricing strategies that protect margins, sustain customer trust, and enable long-term growth—even in the most unpredictable market conditions.
🧭 1. Set the Strategic Vision for Pricing
Why it matters:
In volatile markets, pricing can quickly become a tug-of-war between sales, finance, and operations. Leadership must define the rules of the game.
Leadership Actions:
Establish clear pricing priorities: margin preservation, market share protection, category leadership, etc.
Set company-wide non-negotiables (e.g., minimum margin thresholds, price floors)
Align pricing with broader business strategy—not just short-term pressures
🎯 Clear direction helps teams make confident, consistent pricing decisions under pressure.
🧩 2. Break Down Silos Between Teams
Why it matters:
When sales, purchasing, and finance aren’t aligned, pricing becomes fragmented—and reactive.
Leadership Actions:
Create a cross-functional pricing committee that includes sales, ops, and finance
Hold regular meetings during periods of volatility to review pricing and margin performance
Encourage open communication and shared KPIs
🔗 Collaboration is the engine of a sustainable pricing strategy.
📣 3. Lead the Communication—Internally and Externally
Why it matters:
Price changes can create friction, confusion, or even lost business if not handled correctly. Leaders must set the tone.
Leadership Actions:
Ensure early communication of price changes to branch teams and sales staff
Provide messaging frameworks and tools to help sales explain changes to customers
Be visible and confident when explaining pricing strategy to key accounts or vendor partners
📢 Leadership presence builds credibility and trust—especially during cost increases.
📊 4. Champion a Data-Driven Approach
Why it matters:
Emotional or ad hoc pricing decisions destroy margin. Leadership must ensure decisions are grounded in facts.
Leadership Actions:
Invest in the tools needed to monitor margin, cost changes, competitor pricing, and customer behavior
Regularly review pricing dashboards as part of executive strategy sessions
Use historical data and trends to anticipate shifts and adjust proactively
📈 Great leaders don’t guess—they guide with data.
🤝 5. Empower Sales While Enforcing Guardrails
Why it matters:
Sales teams need flexibility—but without discipline, discounts become the default.
Leadership Actions:
Define discounting thresholds and escalation paths
Empower sales teams with training on value-based selling, not just price negotiations
Recognize and reward reps who protect margin while growing volume
💬 Empowered doesn’t mean ungoverned—leadership provides both freedom and structure.
🛡️ 6. Stay Steady When the Market Gets Shaky
Why it matters:
Volatile pricing environments tempt businesses to chase competitors or panic with discounts. Leaders must remain calm, calculated, and consistent.
Leadership Actions:
Resist knee-jerk price cuts to match competitors without understanding cost-to-serve
Provide teams with confidence and clarity during uncertain periods
Lead by example—show your pricing model is built for durability, not short-term wins
🧠 Leadership means steering the ship—especially through rough waters.
🧱 7. Reinforce a Culture That Values Margin and Discipline
Why it matters:
Margin protection doesn’t happen in the finance department—it starts with culture.
Leadership Actions:
Make margin a company-wide conversation—not just a finance metric
Celebrate teams or branches that hit margin goals creatively
Tie incentives and performance reviews to pricing discipline and profitability
🏗️ When everyone owns margin, pricing becomes a strategic advantage.
🧠 Conclusion: Pricing Is a Leadership Function in Times of Volatility
In volatile construction markets, the companies that win don’t just have better prices—they have better leadership behind their pricing.
Strong leadership builds clarity, discipline, accountability, and confidence, enabling teams to navigate tough markets without sacrificing service, margin, or integrity.
