But we’re really taking a long-term view on how do we drive conversion to get our marketing cost per unit in line directionally around what we outlined on Investor Day. Our next biggest bucket is titling and registration. While we’ve made huge improvements, our cost in titling and registration are still too high. We’re going to keep putting the customer first. We’re going to continue to focus on building this best-in-class titling and registration process. That’s our goal. At the same time, we’ve got tech initiatives that are rolling out in Q4 and in the first half of next year that we expect to bring titling and registration costs down. And right now, when we look at what the assumptions we made in our roadmap that we outlined in May, we believe at this point that we can continue to focus on driving those costs down.
The next bucket is logistics. I would tell you that our logistics cost per unit on the volume that we have today is too high. But we’ve consciously, for the shorter term, we’ve decided, we’ve got a lot of, what I’ll call, semi-fixed costs in our variable costs where we’re keeping hubs open because when we do get things right, get the titles in place and begin to grow in the future. We think we’ve got the right network. And so for the short term, we’re willing to have a little higher logistics cost. I would say I feel real confident that the team has really made huge improvements in the way our linehaul operates and our last-mile hub operates. And we’re being very strategic around how to optimize costs between our internal trucking resources and third party.
And so I’m really focused on how we build that into a well-oiled machine, and I believe that those costs per unit will get in line as we do grow again. And then lastly, fixed cost. I break those down into 2 components. One, clearly, we have headcount in fixed costs. And I’d say that our tech resources are becoming more and more efficient, and we’re focusing them on the highest value-added projects. And in the short term, we really need our tech assets to drive this transformation. So in the shorter term, you’re going to see our tech cost per unit higher than we’d like in the long run, and we’ll expect to normalize that with volume. And then we’ve got other costs like finance, HR and legal. And I would tell you, across all of those, our teams are working to find efficiencies.
And then the last big bucket I’d call out, Rajat, is we have a lot of contracts that we entered into when we were in a very growth mindset oriented company where frankly, our contracts are sized larger than we need them. It’s the size of the company we are now. And we’re going back to all of our partners, and we’re working through trying to rightsize some of those contracts. And I would tell you, we have some really wonderful partners, and we’re trying to work with them in the long run, how do we adjust contracts, and we’re going to remember those that work with us to be favorable. We’re going to have an even longer memory for those that don’t work with us. But kind of holistically, that’s how we look at our entire variable and fixed cost structure, and we’re working on it on a daily basis.
Operator: Our next question comes from the line of Sam Reid of Wells Fargo.
