Matt Garth: Yeah. For the season.
Carla Casella: Okay. Great. Thank you so much.
Operator: Thank you. Our next question comes from William Reuter with Bank of America. Your line is open.
William Reuter: Good morning.
Jim Hagedorn: Hey.
William Reuter: In terms of your — I am trying to think about elasticity, you said you guys have done some studies and worked with your retail partners and I know that this varies by product. But is there any way for us to think about how much higher your prices are this year versus last year?
Jim Hagedorn: Yeah. I — what I would say is, we took pricing, I don’t know, August, I think?
Matt Garth: Right.
Jim Hagedorn: Which I think probably averaged 8 or something like that. I don’t know what it was.
Matt Garth: Yeah.
Jim Hagedorn: So I think that’s probably what you will see is that pricing will show up. Now remember, we have got Real Mondo promotion early season. So I think you will probably see lower retail margins in the early season, particularly on lawns as we promote very heavily with the retailers. But I think, generally, what you would see is a 5% to 10% increase in retail compared to a year ago something like that. That’s what I would — you have.
William Reuter: Okay.
Matt Garth: I don’t have the exact number on that.
Jim Hagedorn: Yeah. But I think it’s — remember, we sell the retailers set their pricing.
Matt Garth: Yeah.
Jim Hagedorn: But they are going to pass through some of that pricing or all of it. So I think 5% to 10% higher than last year is what you should expect to see.
Matt Garth: Yeah. I mean I am sitting across from Joanna Mefford, who’s the CFO.
Jim Hagedorn: Oh! There you go. You got it.
Matt Garth: And the way that she has characterized it previously is from a price elasticity perspective, part of the reason that we are pointing to POS flat in all categories, except for essentially seed and fert being up 10% is because of that price elasticity, right? So raising prices and some of that is offset — coming in lower volumes. So, net-net, that’s what’s driving the POS that way.
William Reuter: Great. And then just one follow-up, in some of the prepared commentary, you discussed that there is risk this year. You then immediately talked about consumer engagement. You have locked in prices on 70% of your products. Are there other major risks that I didn’t mention there that you guys were thinking about for this year?
Jim Hagedorn: No. I would say there’s — the big question always is the consumer and maybe throw weather in that, because I think that’s probably the biggest single factor with the consumer. But I think based on the economy, sort of the health of the consumer, that — the work we have done on the first half is the work that we all know about. We build work with our retailers. We ship it in, load the shelves, merchandize it. At the end of the day, it’s going to come down to the consumer showing up, and that of course, is the risk that I think everybody in the consumer business is looking at. Again, I think we have a pretty conservative sales number of flat to kind of the world’s crappiest year, get back half of what we lost last year in lawns.
