Greg Maffei: Yes. I think you’ve seen us take some of those actions already and you’ll see us continue to look at opportunities to take advantage of attractive opportunities in the debt markets but I’m not going to come out and tell you which ones for buying this week.
Operator: Next question comes from the line of Carla Casella with JPMorgan.
Carla Casella: Just a couple of clarification and follow-up. So on the new customers, you showed in your slides that your new customers are now 4% of the mix of the sales shift. And I know pre — well, in 2021, that was as high as 7 and then 22, 5%. I’m wondering how much of a — how important and how much those new customers are funnelling into that next basket of existing kind of key more longer-term customers? And how do you — how should we think about that?
David Rawlinson: Yes, it’s a good question. So I don’t think we’ve publicly disclosed this. But we basically know from our historical data how long it takes a new customer to become a best customer? And what present of new customers eventually become best customers. Because our best customers are such a small percentage of our file, of course, it’s a relatively smaller percentage, a relatively small percentage of new that end up being best customers. But what we know is that percentage holds relatively consistent. And if we don’t have enough just raw count of new that we will not graduate enough best customers down the line, say, 12, 18 months from the time they walk from the time that they walk into the door. So it’s not new, very rarely is a driver of in-period results.
They’re usually a driver of results, 12 to 18 months out once their buying behavior becomes a vital enough for them to be a substantial customer. The other reason they tend not to be as much a driver of present results is we tend to get new customers coming in into lower-margin categories and then they graduate out to higher margin categories. So they might come in on electronics and eventually graduate to being a very good batching customer where we have better margins. So that’s a little bit about how we think about the progress of new overtime.
Greg Maffei: Part of that, Carl, I think also it speaks to just the strength of the existing customer base. We talked about kind of the average spend per customer there and how important that core customer base is to us. And that’s why you’re seeing such a large index when you’re looking at this quarter alone.
Carla Casella: Okay, great. And then — so are we back to about the same level of like your typical new customers as a percentage of the mix from pre pandemic? I only have the numbers from ’21 on.
David Rawlinson: I would have to take a look at that. I don’t have it right in front of me. We can get back to you on that. I think we’re probably we’re probably a little bit lighter on a percentage basis of new in terms of the total customer file but getting back to what the mix was pre-pandemic but we can get back to you with specific numbers.
Carla Casella: Great. And then just a couple of other questions. One on the product margin favorability. We love seeing that it helps gross margins 180 basis points this quarter. I’m wondering, seasonally, should we think about a similar improvement in fourth quarter or just fourth quarter being more promotional across the industry, should we see less gains in the fourth quarter?
