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How to Build Contractor Loyalty Despite Tariff Challenges
Tariffs are shaking up the building supply industry. Costs are rising, margins are shrinking, and uncertainty is everywhere. Contractors are feeling the pressure, and distributors face tough decisions. How do you keep contractors loyal when prices climb? The answer lies in adapting loyalty programs to meet their needs.
The U.S. imposed new tariffs on imports from Canada and Mexico—25% on most goods and an extra 10% on Canadian energy products. These changes hit distributors hard, especially those in construction and building materials. Increased costs force tough choices: absorb the expenses or pass them to customers, risking strained relationships.
Contractors, too, are looking for alternatives. Price shopping becomes tempting when budgets tighten. Distributors need a strategy to stand out and keep contractors engaged.
How Loyalty Programs Can Help
A well-designed loyalty program offers more than rewards—it builds trust, adds value, and creates lasting partnerships. Here’s how you can adapt your program:
Offer Financial Relief
- Reward contractors with points for every dollar spent.
- Introduce tariff-relief discounts or credits for loyal customers.
Tailor Rewards
- Let contractors redeem points for what matters most—materials, services, or business tools.
- Provide flexibility to meet diverse needs across your customer base.
Educate Contractors
- Share tariff-related insights via webinars or guides.
- Offer cost-saving tips and sourcing alternatives to empower contractors.
Prioritize Top Customers
- Guarantee stock availability for high-tier members.
- Provide expedited shipping or exclusive access to scarce materials.
Communicate Transparently
- Explain price adjustments clearly and honestly.
- Show contractors how you’re working to minimize the impact of tariffs on their business.
Analyze Data
- Use loyalty program data to understand purchasing patterns and preferences.
- Continuously refine your offerings based on contractor needs.
Contractors want partners who understand their challenges—not just suppliers who sell products. By evolving your loyalty program into a value-driven partnership, you show commitment beyond transactions.
Key Takeaways
- Tariffs create uncertainty, but loyalty programs can stabilize contractor relationships.
- Focus on delivering meaningful value—financial relief, tailored rewards, education, and transparency.
- Strengthen trust by prioritizing top-tier customers and adapting incentives to current market realities.
Ready to transform your contractor loyalty program? Start building stronger relationships today with strategies that protect your business and empower your customers during uncertain times! Contact us now for tailored solutions that drive results!