And even more than the cost reduction, where last year for be able to show up this time last year, because they were so busy. Now they’re calling us looking for loads. And when trucking companies are calling you, looking for loads, two things going on. First of all, they’re moving into a recession at some point or something that looks like one. And the second thing is you pay a lot less. Now, where recession is concerned, I want to be actually very clear about something. We have absolutely no top-line risk to right now from recession. None. But I don’t think it might go the other way. I think it might do even more because infrastructure build outs and so on will be so important. But at the same time, I do anticipate a continued and even more dramatic reduction in our cost moving forward as a result of reduced demand and the slowing of the inflationary environment and whole host of other things like that.
So, we never want these things to happen, but I think we’re in as good position as we could possibly be, if something like that does come down the pipe.
Unidentified Analyst: That’s good to hear. And then the last question on the current product was on pricing. You mentioned that you’re pretty proud that you would not increase pricing and you have been able reduce the gross margin operating loss. Are there any restrictions in the GSA and other contracts that actually prevent you from raising prices? Or is it more market forces? And if there are restrictions, when do those roll off in terms of sort of provision in the contract that allowed you to raise price based on either raw material or time?
Desmond Wheatley: So, let me be clear. I am proud of my fantastic team for the fact that they have been able to reduce our costs. I’m not proud of myself for not increasing my prices. I’m neither proud nor anything else for that situation. This has been an entirely pragmatic decision on our part. Based on our belief that at the moment, growing the business, increasing volumes, getting more market share, getting more footprint out there, is absolutely crucial to our long-term growth and profitability. And that raising prices would be just adding an additional barrier. And I’ll tell you personally, I don’t like raising prices to solve profitability problems. That’s not where the work is. Anybody can do that. The work is in reducing costs and that’s what we are absolutely focused on.
And we believe that even where we are with the current pricing, without increasing our pricing right now, we believe that we can get to a 50% gross profit in the future. And that’s the job is to get to that, not just raise the prices because it looks good on a spreadsheet. It’s not to do with restrictions on GSA contracts or anything else like that. Although, of course, there are contracted or negotiated prices. So, we would be able to increase them whenever we renegotiate those contracts or if there’s some extraordinary event that we’re able to demonstrate to them. But that’s not the real interest here. The real interest is in growing this business and in continuing to do what we’ve done over the last couple of years, which is have these triple-digit growth.
Believe me, we will get the profitability out today. Anybody that mass produces a product does.
