RJ Sheedy: Yeah. So we — let me just update you on where we are with the app, and in general, a more personalized approach to marketing. So we did — just as a reminder, we have been successfully piloting the app in our Washington stores since the end of last year. So it’s been out there in those markets for a while. More recently, this year, we rolled out to Oregon and the East. California and Nevada stores don’t have it yet. We had planned to introduce it by the end of the year, that has been delayed by these system upgrades and some of the things that we are still working through. Having said that, we do plan to introduce the app to these markets very soon. So I think about a Q1 timeframe. So just a little bit delayed there.
And then from there, we would do more of a full-on introduction and rollout. It’s been a soft launch to this point, as we have been learning about how it operates and customer experience, which I am pleased to say has been really positive. The customer adoption has been good and the feedback has been positive so far. We are seeing a nice percent of transactions on the app through the app. So that all feels really good despite not having really put any marketing muscle behind it. That’s all in front of us still as an opportunity for 2024.
Robby Ohmes: That’s helpful. And then my follow-up question is, how exactly does commission support work? How do you guys — how does that work for the IO and how do you determine how much commission support to give them in a situation like this?
RJ Sheedy: Yeah. I will start and then, Charles, you can chime in here. In terms of impact to operators and the commission support, the inventory visibility and ordering challenges that I mentioned, of course, impacted the operator’s ability to manage the flow of product into their stores. Largely, they are pulling product in through the order guide and when these challenges started back in September, beginning of September, that was very difficult for them to do. We have been in very close communication with them throughout and we have been navigating these challenges together. And the partnership that we have with them, we talk a lot about the partnership and the relationship that we have with operators. It’s been a really big part to minimizing the impact that this has had on customers and the business.
We are not happy with the magnitude of impact on the business. But overall, the customer experience, there’s not been a huge impact on that, a little bit lighter in inventory, some lower variety accounts, but together with everything the operators have done, we have been able to minimize that impact. We did elect at the outset of the implementation to provide operators with commission support, and the purpose for that was, well, one, in spirit of the partnership that we have with them, and then two, to help minimize the impact of this transition on their commission and income together with the work that we have been doing to minimize the impact on the customer and our P&L.
Charles Bracher: Yeah.
RJ Sheedy: Anything else, Charles?
Charles Bracher: No. No. Just to add to that, Robby. As RJ said, it really is a reflection of the spirit of partnership, the relationship we have with IOs. And so we didn’t disclose a specific dollar amount, but it is included, of course, in our SG&A for the third quarter and the estimated impact in the fourth quarter is included in our EBITDA guidance we provided.
Robby Ohmes: Got it. Thanks so much.
Charles Bracher: Thanks.
RJ Sheedy: Thanks, Robby.
