Price Fluctuation: How to Mitigate Impact with Online Payments
Recent material cost fluctuations are having a substantial impact on the building and design industry. As supply prices continue to climb to record levels, many businesses are experiencing strains on their operations. From resource scarcity to labor shortages, it's increasingly difficult for professionals to keep projects on schedule and even more so for clients to keep up with the price volatility.
Although there are many factors in today's market that we cannot control, accepting credit cards is a viable option for combatting unpredictable material pricing and can be beneficial for your business as well as your clients.
Here's how accepting credit cards can help mitigate the impact of unpredictable material costs.
What’s causing the shift in material costs?
Shifting material costs are the result of a variety of factors. Natural disasters, for example, can cause a scarcity of resources and inflate pricing. New government tariffs can also make supply acquisition overly expensive.
A new challenge today’s building and design professionals are experiencing is all-time high material prices and increased shipping delays as a result of production restrictions and shortages during the COVID-19 pandemic.
Some raw materials like lumber have seen dramatic price increases range from 70 percent to 300 percent since 2020. And according to the Construction Products Association’s most recent State of Trade study, over 97 percent of companies dealing with production materials such as lumber, concrete, and steel expect prices to continue increasing in the coming year.
How building and design professionals are affected
Building and design professionals cite unpredictable material costs as a major pain point in today’s market. According to the ASID Interior Design Billings Index, 54 percent of design panelists indicated the supply chain as the most important interior design-related government and public affairs issue.
Supply cost fluctuations put a financial strain on building and design businesses, forcing them to dip further into the company budget or increase project pricing for their clientele. In addition, clients are often unprepared to take on unexpected pricing changes, leading to project delays. In more severe cases, contractors have no choice but to cease work until the client can afford to cover their costs.
Why accepting credit card payments could be your solution
Accepting credit card payments empowers you to manage price fluctuations and enables your clients to handle the unexpected without disrupting your project schedule. You never have to worry about late payments or bounced checks, and your clients will feel comforted knowing their projects are on track.
Below are a few of the benefits accepting credit cards can provide you and your clients.
Faster processing Credit cards allow clients to quickly pay for services and materials during a time when limited resources create competition and call for a payment type that’s readily on hand. If a client has to go to the bank, transfer money, or write a check and have it clear, there’s a good chance someone else will get to the materials they need first.
More reliability When you allow clients to pay with credit cards, you don’t have to worry about failed or late payments. Credit card payments can be verified instantly when you run a transaction, so there’s no delay or wait time. If you use an online payment solution, clients can even securely store their card information with you and schedule automated payments for future expenses.
More budget flexibility Credit cards also offer your clients more flexibility in terms of their budgets. When the scope of a project goes over the original targeted cost, credit cards give your clients quick access to more funds in order to keep the project on schedule. This allows them to make a more significant investment in your business.
ClientPay is here to help
At ClientPay, it’s our mission to ensure you always get paid for your hard work—regardless of ever-changing market conditions. Our online payment solution makes it easy for your clients to pay using a variety of payment methods, including credit cards.
Discover more about how accepting online payments with ClientPay could save your business from fluctuating material and labor costs by speaking with one of our payment specialists.