Certainly organic is really important to us. Certainly we need to do a better job on the marketing side, but the competitive landscape for our own keywords, phrases, we’ve even had certain top leading customers that would really go heavy handed on our own namesake and so forth. So it’s always a challenge in that category, but seen the pricing go up six-fold and specifically to some of our key search words. So we have to pivot. We have to do better, and we just need to figure it out.
Matt Koranda: Okay. All right. That’s helpful color. And then just on the traditional channel, you mentioned sort of the distribution side of things being the real culprit here. It has been, I guess, for the better part of the last year plus maybe, maybe even longer at this point. How small a piece of the traditional channel is that distro and international piece at this point? It seems like it just should be a lot less meaningful on a go forward basis, but if you can just help us understand how to quantify that and how it, how it moves on a go forward basis to be helpful.
Don O’Connell: Yeah, sure. So right now we’re looking at almost three quarters of our business is online. So that’s really important, and that’s by design. That’s literally at the base of all our initiatives moving forward. That’s where our spend is going. That’s where our investments are going because we believe that generates the long dollar and the highest value proposition for us as a company and a brand. So that’s most critical. Going back to your question, which specific to traditional, which is now a quarter of the business, and then you would break out the brick and mortar part of that. So the wholesale business is a much smaller representation of our overall revenue. And then, going forward, we speak about other initiatives that we have in place in other areas like our signature showroom, which if I could report on the signature showroom was incredibly exciting category and a channel for us this holiday season, and it’s taking shape just right now and, and really performing better than expectations.
So we’re pretty excited about that. So anywhere we can control our own destiny is really important to us. So we all know that the wholesale business, has different challenges, right? So our dis our distribution partners are managing their inventories differently. They’re trying to practice just in time, they don’t have the capital or they don’t want to make the capital investments to hold inventory, especially given the economy and what’s happening in the environment. So in doing so they’re reducing their overall positions and exposure. So we understand that. So that’s why early on we started this shift, as we stated over, the last couple years to be able to go more direct to consumer, to look for more channels to create our own owned properties multiple owned properties, and then really reach that consumer digitally and virtual whenever we can.
We talked about live streaming. We talked about shopping direct response, more of a linear comment that’s going to actually be monetized in the future as we become less dependent on the wholesale arm. The pricing pressure right now between the race to the bottom and lab grown diamonds is putting downward pressure to the wholesaler on our moissanite business too as well. So that’s why the more we can do direct-to-consumer, we can still realize and capitalize on the higher margins and continue to do so moving forward. So we’ve been making it very clear, I understand that when we say this particular section or segment is down by 49% I don’t want everyone to get hung up on that because ultimately, as that becomes a smaller and smaller piece of the business, certainly that percentage is going to climb and rise.
