Holden Lewis: Yes. If those categories are too broad for you, take that up with the federal government. I’m just going by SIC codes. I don’t know what the outliers are. At this point, and honestly, I think it kind of is reflective in the end market chart that we have in the press release. At this stage, pretty much every end market is converging on itself. We’re well over a year here of sluggish demand in a market that I think has affected most markets. And so when I talk to the regional leadership and they provide their feedback, there’s different times when certain markets are called out because they’re either stronger or weaker or what have you. At this point, I’m not getting a lot of end market callouts, which suggests to me that people are kind of feeling a general softness across the board. So, I don’t have a lot of market-by-market color to add. I’m not sure there is much.
Jacob Levinson: Okay. Yes. That’s great color. Maybe expanding a little bit on Steve’s question on pricing, I mean, certainly, steel is more important for you folks who we’ve seen inflation being a little bit sticky. We’ve got copper prices going up, oil prices going up. Just trying to get a sense of, and maybe it’s too early, frankly, to even asking us, but just trying to get a sense of what the appetite is in your supply base to take prices up again this year.
Holden Lewis: I don’t know that I’ve heard about a lot of appetite. Now a couple of things, I think, that you should recognize. One is I think a lot of people look at the US steel indexes, I would tell you that we’re more associated with foreign steel indexes and those have not been particularly volatile, frankly. I think the US ones are behaving in a different fashion than the Taiwanese or Chinese ones. And so we’re not necessarily seeing the steel inflation that people keep asking me about. Two, bear in mind that by the time fastener is made and shipped and sold to the mark up through the channel, et cetera, the actual value of the raw material in the final product is probably one-third or slightly less of the total value.
So I mean, I know we’re selling a slug of steel, but there’s a lot of value add wrapped on top of the initial raw material. And so honestly, as long as I’ve been here, and Dan might be able to speak to prior periods. But as long as I’ve been here, steel hasn’t really been a catalyst to raising or lowering prices. Transportation has been more meaningful. So I don’t think that I’m hearing anything. And Dan and I have spoken to different people, different group, and might have a different perspective. I don’t think I’m hearing anything that says, we’re seeing rampant inflation in raw materials that we need to start thinking about raising prices.
Dan Florness : If I look at the fastener subset, and Holden touched on this in his earnings release because you have to look at where steel is used and it’s steel, the copper prices has been very meaningful in our business. One element that as FMIs become a bigger part of the business, you start — you get new indicators in the business. And I talked about what we’re seeing in the vending and what we’re seeing on Onsite. Another one is related to our bin stock app. And so that’s now about 13%, 14% of our sales, and there’s a high concentration of fasteners in there, not exclusive, but a high concentration. There’s a lot of OEMs. And so there’s — in our other product lines, there’s OEM aspects in there as well. But I don’t have apples-and-apples comparison to last March, because we were still transitioning off our legacy bin stock app platform, the MC70 devices.
But in April of 2023, we were doing just over 16,000 transactions, orders per day using a mobility device in an Android device scanning bins. The dollars per order was 320,000 orders for the month, so 16,000 a day. Dollars per order were $232. In March of 2024, 11 months later, we did 362,000 orders during the month, so 17,240 some a day, $2.16, so it’s down $16 or 7% from a year ago. I would venture to say two-thirds of that is pricing and the other a third is just underlying consumption. And that’s an estimate, because we don’t have great visibility into it. When we started the quarter, it was kind of in the low 220s and now it’s around 216s. I don’t know how much Good Friday played into that, maybe a point of it. But there is different pricing going on.
So part of the negative in fasteners, as Holden touched on in the press release, is pricing, but it’s also a weak demand environment.
Jacob Levinson : I appreciate the color. Thank you. I’ll pass it on.
Dan Florness : Thanks.
Operator: Thank you. Your next question is coming from Patrick Baumann from JPMorgan. Your line is now live.
Patrick Baumann: Hi. Good morning. Thanks for taking my questions.
Dan Florness : Good morning.
Patrick Baumann : I wanted to ask about something you mentioned in the press release. It says towards the back of your release it says like less store closures should result in an increase in growth of end market locations going forward. I see how that would make a lot of sense. I guess, I just wonder if you could address the degree to which store closures in the past have contributed to the Onsite location growth that you’ve seen. And then relatedly, what drives confidence that you can organically sustain that level of growth without the help of business coming over from the stores going forward? And maybe this is just a misunderstanding on my part of what’s driven the Onsite growth in the past. And so if you could kind of clarify that that would be super helpful.
