Chris Snyder : And then was that right? Or did you say earlier, it was a 60 basis point boost in Q3 to the High-Touch gross margin?
Dee Merriwether: Yes, that is correct.
Chris Snyder : Okay. Thank you. And then maybe staying on the topic of services. D.G., in your opening remarks, you talked a lot about the value-added services that Grainger is bringing to the table. I guess as we think about those going forward, do you view those services as a way for you guys to continue to drive price even in a cost environment or purchase environment as called out going sideways? Or do you view those more as just — well, that’s why we can outgrow the market by mid-single digits on a volume basis?
D.G. Macpherson: Yes. So I’d probably frame that a little bit differently. So we are first and foremost a product company. We did two things for almost every customer. We help them simplify their purchasing process. We try to make it really easy for them to buy, receive, pay, return if they need to, the products we have, and then we help customers manage inventory. And so for almost all customers that are of any size, we’re doing those two things, and those are not actually in the realm of what you would call value-added services, I should just described. Then there are a whole bunch of value-added things that we provide to our customers often through our supplier partnerships that are service related. They are a minority of our business, but they are important when customers want them.
So if the customer wants to do safety audit. It’s really important that we can help them understand what challenges they have and help them get better at safety and so we provide that service to our partners. And we will continue to do those things. But generally, I think the thing that’s different this quarter is there was, in particular, a couple of very large projects that probably are not likely to repeat, that were driven by things that typically don’t happen and so we just wanted to call those out. But our fundamental business model and how we add value to customers is really around helping them get the products they need to keep their operations running, make sure they have the right inventory.
Operator: And our next question comes from Patrick Baumann with JPMorgan.
Patrick Baumann : A lot of numbers like flying around on the gross margin side. So I just want to clarify, the 40 basis points, Dee, that you mentioned of gross margin, on an annual basis?
Dee Merriwether: Yes. When I was calling out…
Patrick Baumann : Is it ’23?
Dee Merriwether: Yes, that is if you are looking to normalize ’23 and are thinking about gross margins on a go-forward basis, that’s the 40 basis points.
Patrick Baumann : Right. Right. So all else equal, that’s — so if everything else is 40 basis points comes out of your ’23 number as kind of like a baseline?
Dee Merriwether: Correct.
Patrick Baumann : And that’s for next year. Okay. And then the follow-up is it sounds like maybe 2024 is a more normal year for pricing based on your comments that there is a lot of product cost pressure. Assuming that’s the case, and with the gross margin coming down a bit. Do you see SG&A inflation slowing off to be able to deliver a bottom line margin expansion? It looks like your fourth quarter guide there was flat year-over-year, but I think maybe there was some onetime benefit in SG&A last year that were onetime cost, I think, in SG&A last year that inflated the prior year results. Just curious if you could give any color on that.
