Dan Florness: In February, I think it was February, I was down in Indiana visiting, speaking to a group of branch managers and visiting with Randy Miller, our most senior Regional Vice President. And they asked me if I want to go up and visit a customer and the customer that took me to was a large Onsite. They’ve contacted us in the fall of, I believe, it was 2020. I might be wrong on the year but I believe it was 2020. And they need some help and we set up an Onsite in there. And the incumbent had been staffing the Onsite 24 hours a day. And our folks really studied the activity and said, if we put out a handful of — if we put our product in a handful of lockers in a way that we wouldn’t typically do it, we could give you better service and staff 10 hours a day instead of 24 and you’d get better service than you were getting before.
And we’d have a better — it would be easier for us to recruit and we could ramp up faster the business because finding folks to work 24 hours a day is sometimes challenging. Finding folks to work 10 hours a day or a 10-hour window, especially when it’s during daylight is less challenging. And again, it was a case of — that separated us in that instance. And I visited that customer, I had a great visit with them. And they were showing me some of the stuff that we were doing that they just loved about our model.
Operator: Our next questions come from the line of Chris Dankert with Loop Capital Markets.
Chris Dankert: Holden, you had a kind of mid-teens growth in IT spend and an FMI investment. As we’re thinking about kind of SG&A spending and investment going forward, can you kind of give us a sense for how you would trend in the back half of the year as you kind of keep investing for growth here?
Holden Lewis: Yes. Well, I mentioned the IT and the FMI spend because those are investments in our business that we’re making that are wise investments to make. And I don’t necessarily anticipate where we’re making investments in those areas that we’re going to pull meaningfully back in those areas. The areas we were talking about more had to do with expenses that we had for travel, both sales and non-sales and related type expenses. When we think about how we’re using our part timers and the fact that hours among our part timers are up, 12% in June in a marketplace where revenues are up less than 5%, there’s just a number of things that we talked about that are variable that we weren’t really treating those expense lines as though we’re in an environment that’s growing at 5%.
And the message is we need to get there. Now what was the impact of that? If I think about the — if I think about the travel, meals, supplies, et cetera, that’s about a 10 basis point impact on our business in terms of overall profit impact. If I think about the increase in base pay that comes from higher absolute headcount that comes from higher part-time hours, those sorts of things. That would have been about a 450 basis point impact to margin. Now that was offset by the fact that incentive compensation was down because last year was such a strong year relative to this year. But those are areas that as an organization, we need to tighten up a lot of our behavior and patterns to reflect more of the environment that we’re in. And again, I expect that we’ll make progress on that in the third quarter.
