Meredith Burns: Okay. I’m going to move into a couple of questions that we received on both pricing and inflation. So we’ll start on the pricing front. Sean, how much pricing has been taken in Vista and in other businesses? Also how much was overall inflationary pressure? How much more pricing is there to take over the course of the next 12 months to 18 months?
Sean Quinn: Yes. This is an important question, and frankly, it’s one that is difficult to answer with precision because there are a lot of nuances here, business by business, market by market. And there’s all sorts of impacts of changes in volume and discount rate and mix and so on. So let me — I’ll do the best to answer here. We’ll also think about how we could package this up as well in our March session at a little meat to this. But all of our businesses have seen increased input cost. We’ve been talking about that for the last four quarters in particular, five quarters. Some have been impacted more than others. So just as an example of that, things like energy costs. In Italy, they’ve increased a lot. In France, they have it, right?
So there’s things like that that will have an impact business by business. There’s also, obviously, depending on the raw material profile for our businesses that has a big driver. Some impacted more than others, some are more directly tied to commodity prices, including paper. And in other businesses, including, for example, for National Pen, they do a lot of sourcing from China. There we’ve actually seen, and this is an overall market thing, we’ve seen meaningful decreases in things like inbound freight costs, which are more material for that business. So there’s a lot of nuance here. In our Upload and Print businesses, in National Pen and to some extent in BuildASign, we’ve been able to largely offset those cost increases with price increases, and that remained the case through Q2.
Again, differences business by business. They’re not fully offset, but we’ve been able to largely offset those cost increases. In Vista, of course, our largest business, that’s where we’ve seen the most net impact, the timing of the ramp-up in those cost increases we talked about last year coincided with our technology migration that we’re doing, some of our largest markets that delayed when we could start to put those pricing benefits in market. We implemented broad-based price increases back in June and then we continued from there. We talked last quarter about some of the benefits we are seeing. Those benefits were higher in the September quarter than they were in December because of the mix of consumer and the level €“ also the level of discounting for holiday promotions.
And in consumer, just given the price sensitivity there and the fact that we had brought down our discount levels over the last two, three years, there, it’s a more price-conscious customer. There is more price sensitivity on the consumer side. And so we’ve done less in terms of the pricing benefits there. And that has an impact given the mix in the December quarter. We had said back in our September Investor Day that for Vista, we expected to deliver at least $20 million through pricing changes in FY2023. There’s, again, a lot of nuance to that, but we’re definitely. We’re on track to that for that. We’re on track to achieve more than that. But the relative benefit in the December quarter was less than it was in the September quarter. I think as we get to the March quarter and that mix shifts back again more towards the small business products, we’ll see more benefit in Q3.
