Robert Lisy: Yes, I think one of the big factors is that the peso has strengthened, right. So you don’t need to send as many dollars to get as many pesos on the other side of the border. That’s going to be a big countervailence to any inflation really because we’re thinking of inflation here, but yet you’re now getting the peso was much stronger than it was previously, and that’s going to cause people to be able to need less to get the same amount of pesos on the other side of the border. So we’re seeing it kind of flat right now, but it could go up if the peso started to weaken, for instance.
David Scharf: Got it. Perfect. Great. Thank you very much.
Robert Lisy: You’re welcome
Operator: The next question is from Mikel Grondahl with Northland Securities. Please go ahead.
Michael Grondahl: Hey, thanks guys, and congratulations on the progress. Bob, you kind of talked on the last call about it like a targeted plan. I think one was these pricing offers to agents where you lost volume. Two, you were targeting new agents. Three, some pricing actions and four sort of new markets. Could you kind of rank where you’ve been the most successful and where you think you still have a little bit of wood to chip on those four items?
Robert Lisy: Yes. I think the place that we’ve been the most successful is going after opportunities where we’ve lost wires in the past because of discounting and being able to go after those wires aggressively, still profitably while protecting the base. So again, not going in if — and I’ll get in a little bit into the weeds here with you because it’s — I think the only way to really answer this, if an agent used to do 2,000 wires with us and now does 500, we’re really going to discount and give them a better pricing on wires 501 and up. We’re protecting that base. We’re not decreasing the margin at that retailer on the core that they already have and certainly not an agent retailers where we haven’t lost anything at all.
The easiest thing to do and the mistake that the market makes and we’re happy most of our competitors do this is they take a sickle to a surgical event, right. And they just go in and they lower their margin across the country. We have a huge core business that’s performing quite well at the margins that we already have. So that’s been the best piece of that, and we have a lot more to do. That project is probably responsible for about a 1.5% lift on our trend line over the last few months, and we believe that we can continue that project producing that 50 basis points or so of lift month-over-month for a number of months still, not into perpetuity, but clearly to bring our transaction growth numbers up quite a bit. New agents, I think, is the total of new agents that we’re bringing in is not as big as it’s been in the past, but we’ve never really been focused on the number of agents as much as we are the performance in the total amount of wires and the new agents have been performing quite well.
That’s been helpful. I think what was the other things you asked, I’m sorry, I want to make sure I touch on all the points?
Michael Grondahl: Yes. I think there was some — you were looking at some pricing and maybe selectively able to increase it in certain markets and the last one was just any new markets that you’ve added or targeted.
Robert Lisy: Yes. I mean, the pricing, the macro pricing we thought better about. We’re not doing macro pricing and getting more aggressive, let’s say, in a whole state like Arizona. Everything we’re doing is rifle shot because that is really the key to us maintaining those margins and actually extending our margins bigger than the growth of transactions. So I would say we haven’t done much of the macro, if any, at all. Then new geographies, there are some states for us that are growing quite well. I won’t name them that are not necessarily new because we’ve been in every state, but they are underdeveloped states that we’ve made some turns in that have been helpful, mostly in the Western states. California is now growing, and the trend has turned around significantly and there’s a few other states out West that are performing quite well.
