Anthony Aisquith: I think it’s back to the way the boat business was in 2018 and 2019. Everybody’s being pretty competitive and the manufacturers are being great partners and helping us move boats. As far as the volumes are concerned, I’m pretty impressed of what — we’ve had some shows that we’ve had some, unfortunately, pretty bad weather in the northern markets that were affected. But the boats shows that we had in the southern markets were up over the prior year and continue to do very well. It is with the help of great manufacturing partners though, which we had that help in 2018 and 2019. During COVID, we didn’t have any help, we didn’t need any help. But as things get more competitive and as the inventory rises, they are staying with us, if you will, helping us make — ensuring that we have great shows and they have been .
Michael Swartz: Great. Thank you.
Operator: The next question comes from Fred Wightman with Wolfe Research. Please go ahead.
Fred Wightman: Hey guys, good morning. You’ve talked for a few quarters now about working down your inventory to position OneWater for what you were seeing on the horizon in terms of slowing retail and some dealers getting a little bit heavy. Do you just feel like your mix of current versus non-current compared to what you’re seeing in the industry today really positions you to do that? And can you maybe just talk about your ability to capture, maybe where that would show up? Is it more on the comp side? Is it more on the margin side? Like, where do you think that proactive approach that you’ve taken is going to be most visible?
Austin Singleton: Well, I mean, I think it’ll show up everywhere. I mean I think one of the things that we’re — what’s happening now comparing us, the weeks on hand, when you look at that, we don’t really know the makeup of that 38 weeks on hand from an industry perspective. That’s information we get out of the weeks on hand out of Wells Fargo, but it’s not diced up between 22s, 23s, 24s. We don’t get, we can’t get that kind of detail out of them. But when you look at [38] (ph) compared to where we are, that’s a pretty good competitive advantage that we have. I think the one thing that probably would give us a little bit of concern, the further we get into the year, the more of that 23 inventory that we have left is the harder inventory to sell.
So like if you have, there’s certain 23s that are like popcorn, you can sell just as many of them as you can get, but then you get into some other ones that aren’t really the right boats. And I think that’s a little bit of any concern that we’ve had in the last several weeks is, as we keep moving forward, it’s going to get harder and harder to sell that 23. The hope is that means we’re going to be selling that many more 24s to offset whatever kind of margin we’re going to have to take, margin decline on this 23. So but I think it’s going to show up in same store sales. I think it shows up in gross margin. It all depends on how quick we can work that down and then get into being able to sell 24s against 23s, then you don’t have to be as competitive, especially on the new models.
Fred Wightman: That makes sense. And is there any way that you can just give some context to the pricing or margin benefit for those 24s versus the non-current stuff just to sort of help us think about what that blended margin opportunity could look like?
Austin Singleton: Well, I mean, I would think, Anthony, it’s probably double, isn’t it? If you take our 24s, put it against the competitor’s 23, we could probably get twice the margin they’re getting. If they’re getting a 6%, we’re getting a 12%. If they’re getting a 10%, we’re getting a 20%. If they’re getting a 12%, we’re getting a 24%. I would say it’s close. Yeah, go ahead.
Anthony Aisquith: And it’s very mixed by model. I mean, whether it’s brand or whether the specific model is a recent renewal or it’s a model that’s a little bit more stale. So there’s a — it’s really hard to break down that number, Fred.
Fred Wightman: Okay. Thanks a lot, guys.
Operator: The next question comes from Noah Zatzkin with KeyBanc Capital Markets. Please go ahead.
Noah Zatzkin: Hi, guys. Thanks for taking my question. You kind of touched on this a little bit, but in terms of you know kind of the levers that you have available to you should retail potentially soften, I guess first like internally, how are you thinking about those levers? And then second, like is there an expectation that that OEM incentives could step up where units not to be moving come spring and summer? Thanks.
Austin Singleton: Jack, I — to the levers, we’ve covered this a lot in several of the quarters. We have a lot of levers to kind of pull themselves. When you go back and you look at what we had pre ‘08/’09, as far as our biggest expense on the P&L is employees. Most everything’s tied to bottom line or the performance of that department. So, if things slow up a little bit, that kind of [rides its ship] (ph). There’s a lot of other levers that we have from just different cost-cutting methods that we can do, just stuff that we kind of have in our playbook that it’s been hard for us to really deploy some of those right now because the revenues have kept up. And so it’s like, you go out and you make a bunch of cuts and then nothing slows up or doesn’t slow up dramatically.
