From ELAINE analysis of narrative from KB Home latest earnings call transcript, businesses affected can deploy ACT to derive counter measure:
Strategy 1: Lock the price of material at house start so as to prevent surprises. If inflation on material is transitory, build and buyer will not realize the benefit. If inflation persist, buyer is protected from the rising cost.
Strategy 2: Include an escalator in the contract to reflect the dynamics of inflation. Buyer and builder roll the dice.
ELAINE analysis of KB Homes latest earnings call (2021/06/23). Click to view details