Scott Stember: And just to be clear, sales off the van [ph] are stronger right now than into the channel. Got it. All right, that’s all I have for now. Thank you.
Nicholas Pinchuk: Okay.
Operator: Our next question will come from Christopher Glynn with Oppenheimer. Please go ahead with your question.
Christopher Glynn: Yes, thanks. Good morning. I had a question on the gross margin, which was very strong. You mentioned supply chain clearing. Is that more or less recovered now? Or does supply chain…
Nicholas Pinchuk: Well, every time I have a review, if somebody brings up something that says they got some spot buys still coming through. But in general, like I said, the skies have cleared, and we’re going to get a little more benefit, but most of it is out now. Our big problem was, of course, everybody saw commodity prices to go up and freight price to go up. But the big problem for a company like us is we had spot things in a lot of situations, which we’re paying 2x or 3x sometimes what the original price was. And so that ends up going in inventory. Just think about it. If you have in trouble getting stuff, you tend to overbuy it sometimes because you want to have it in stock because you want to deliver as the first priority. And so you get yourself in that situation. And so you’re seeing that clear. And so what happens in that situation, the advances in new value products and the RCI we’ve been doing all this time starts to shine through.
Christopher Glynn: Great. Thanks for that. And given the expansion at SOT over the past few years and your bandwidth capacity to sell, you’ve — I think, grown your actively serviced technicians. I’m wondering, does that reopen the gate to add franchisees and were franchisee — was U.S. franchisee count? Is that pretty stable, as I understand it to be?
Nicholas Pinchuk: It’s pretty stable. We’re down a few franchisees this quarter, but not many. It’s not a factor for government work, Chris. But — and we’re not — we’re probably not going to add people. We believe that our franchisees sell more because we tell them, you’re our guys. And if we do well, so you, and so we believe that subdividing their opportunity probably isn’t the best alternative. Now we think we have the world covered. We have, what, 3,400 franchisees around the country. So we think we have most of the places covered. I suppose there’s the odd place that we might find that we’d add one or two. But really, that’s not going to be a program for us. Our way up is to get the guys to be more aggressive and in this instance, to be able to deliver better. We need to — we’re expanding our capacity, so that should relieve some of the problem. But it’s a happy problem actually that people saying we’re waiting for your tool storage products.
Christopher Glynn: Yes. And is franchisee turnover still stable?
Nicholas Pinchuk: It’s still about the same — it’s about the same. It’s about — I think it’s about 10% and you’d say, Chris, what 5% of that is retirements. You’d say 5% is guys pretty much every year, you’ll get that. And so 10% is pretty stable. It had been higher sometimes, but now last multiple quarters has been stable, about that number.
Christopher Glynn: Great, thanks.
Operator: Our next question will come from David MacGregor with Longbow Research. Please go ahead. David MacGregor, your line is open.
David MacGregor: Here we go. Sorry about that, it was on mute. Good morning everyone.
Nicholas Pinchuk: Good morning.
David MacGregor: I guess I wanted to — maybe a question for Aldo, but obviously, some huge incremental margins in both Snap-on Tools and in C&I. And you referenced the raw material benefit. So I mean we were expecting to report good margins, but these were certainly above what we were anticipating. How much of this price cost carries forward into 3Q and 4Q? Can you just talk about kind of the trajectory?
