As it relates to our franchise partners the impact of EV on any franchise partner is different in some of the middle of the country areas where the preponderance of EV sales is quite low they obviously have no impact and very little interest. But even those that are more in geographies where EV sales is higher, some of those geographies are also underserved from an ICE preventative maintenance perspective. And so our franchisees really are as entrepreneurs wanting to make sure they maximize the return on invested capital that they’re placing into their business they don’t see the – they see a lot more upside in serving the existing car parc, although they remain interested and connected to us on work that we’re doing on EV-related services.
In terms of the last part of your question which was around interest levels, I don’t think EV is impacting the interest levels of new partners. We have continue to have very productive dialogue with potential new partners. We’ve signed a couple of smaller partners as we’ve shared before and are in conversations with more scale partners around joining in the Valvoline franchise business. So continued great progress nothing more to report at this stage, but I wouldn’t say EV is a high factor right now on the franchisee side.
Avanti Cheruvallath: Thank you.
Operator: Our next question comes from Mike Harrison with Seaport Research Partners. Your line is open. Please go ahead.
Mike Harrison: Hi, good morning and congrats to Lori on getting your topside certification. I’ll keep an eye out for you the next time when I’m in one of your stores.
Lori Flees: Thanks, Mike.
Mike Harrison: Now that we’re kind of past the winter months I was wondering if we could get an update on the battery offering and how that performed during those winter months relative to your expectations? And just curious if there’s some additional upside next year from the battery offering as you make that available at more of your locations?
Lori Flees: Yes, it’s a good question Mike and something that we’ve been spending a lot of time on as a management team. The battery offering is probably a more complicated service because the variety of batteries is just as they diverse as the number of air filters but they take a lot more space in the stores to store and you certainly can’t let them sit for a long time if you’re not placing them in service. And so we have a last mile delivery partner that has to deliver the batteries and frequency relative to the car parc. It also requires that we test the batteries every time they come in because not every time will a battery register red or yellow in terms of its health. And if we don’t test the battery every time, we don’t earn that trust to complete the service with the guest.
And then the last one is that the testing devices we continue to look at improved testing devices because as the OEMs continue to change the design of the vehicles and lower the cost, so putting more plastic around some of the nodes, it makes some of the testing devices a little bit more tricky to ensure that you can get a really accurate read. So, these are all things I’m explaining because we believe there is more opportunity in battery. We have fantastic pricing relative to comparable service providers in the market. And it’s an area that we’re working on because we do believe there’s more opportunity there and it will be part of our plan for the remainder of this year and into next year for sure.
Mike Harrison: All right. Thank you for that. And then you mentioned the internal control issue and I understand you may not want to get into too much detail here. But if you can provide any color or help us understand what the problem was and what needs to be done to fix it that would be helpful? And maybe just give us a broader update on where you are in that ERP implementation process?
Mary Meixelsperger: Sure Mike. So, the issue from an internal control perspective was primarily around our information technology general controls in the quarter. We went live with the new system on January 1st. That system implementation was really driven by the sale of the Global Products business. And the good news is we’re implementing a system that’s very retail specific versus our legacy system, which was much more driven by chemical/materials supply chain requirements. But in the new system implementation we saw challenges in the quarter around user access controls and some monitoring controls documentation-related to — and monitoring-related to IT changes and job scheduling around the ERP system. And then we also saw some system design issues around business processes.
I had mentioned that we saw some invoicing delays in the quarter to our franchisees. And that relates to some of the design issues that we’re addressing to ensure that the system is more highly automated. I would say that we’ve had no material day-to-day impact on our business operations. And we’ve been consistently able to serve our customers and support our franchisees. The systems that directly support operating our store operations were not impacted by the implementation. So, mostly as I said around the IT general controls.
Mike Harrison: And is that implementation complete at this point? Or is there still a lot of stores where it needs to be rolled out?
Mary Meixelsperger: No, it’s complete. And again it didn’t affect the store level systems that we operate. It’s really the financial systems and then some of the supply chain operations. And those — the system implementation is complete, but we’re continuing to provide enhancements to the system. And as we go forward over the longer term we’ll be able to leverage some of the new capabilities in the system to provide for increased efficiencies and improved analytics and reporting over the longer term, there’s some real benefits to the new platform. But shorter term, we’re focused on the remediation plan for the IT general control environment, which we expect to complete by the end of the fiscal year and also just focused on making certain that the core system capabilities are functioning as intended.
Mike Harrison: All right. Thank you very much.
Operator: Our next question comes from Jeff Zekauskas with JPMorgan. Your line is open, please go ahead.
Lydia Huang: Hi, this is Lydia Huang on for Jeff. Could you break down your volume growth in the quarter by volume from oil change and volume from other product sales? Thank you.
Lori Flees: So, if you look at are you — I think you’re talking about our same-store sales breakdown, which I think Mary covered in her comments that ticket represented about 70% of our same-store sales system-wide and transaction was about 30%. Within the ticket side, NOCR, both price and penetration, was the largest contributor overall and that was followed by pricing and premium mix. So, I think in general, we feel great because we continue to drive very strong growth in the added services or non-oil-change revenue. And it’s not coming just from our bottom quartile stores. It’s actually coming from all of our quartiles, which means there’s continued opportunity. So, we continue to set the bar for best practice higher within our system and the average keeps increasing.
And the team, they put together a competition in this last quarter. And what it did is it reenergized the learning of our team around the added services and best practices to presenting them effectively to our guests. And we’re really pleased, because sometimes when you run those competition it gives you a short-term burst, but this really did up the game of our talent and just to increase the best practice level that they carry out the services, and the services presentation. So we continue to see that performance, which we’re pleased with.
Lydia Huang: Thank you.
Operator: [Operator Instructions] We now turn to Bret Jordan with Jefferies. Your line is open. Please go ahead.
Q – Bret Jordan: Hi, good morning, guys.
Lori Flees: Good morning. Good morning.
Q – Bret Jordan: Could you talk in services where you thought – Hi, good morning. Could you talk about in the services category sort of specifically where you saw the most traction? And I know you’ve been sort of looking at expanding the services menu, what you’re saying that you might add from here.
Lori Flees: Yes. So we — just the last year 1.5 years, we’ve been focusing on the basics. And in this year — in this last quarter, we sort of increased it beyond that. So visuals is what we would consider the basics. That’s cabin air filter, air filter, wiper blades and light bulbs and batteries. Those are the things that are visuals meaning, we visually show the customer how those things are performing. We can visually inspect them. And we share that information with the guests and it comes down to making sure that we offer to pull every cabin air filter and explain why. During COVID, we had removed that from our service process. And when you are operating 1,900 stores to try to get that back into the process for every single technician that’s in the window of a customer, it takes time.
And I think that we’re just getting back to the basics on things like that. The other thing with air filters is, taking it out showing the customer side by side with a brand new one, so they can actually see whether or not they should be changing it. These are just simple basics that we’ve been reinvigorating across our team and they have provided a very big part of the lift. Now I did mention in my talking points that this quarter, we saw an increase on OEM recommended services or automotive manufacturer recommendations. These are things that are not required every visit or every year. They typically are required at certain intervals say, a 30,000-mile 50,000-mile checkpoint. And we saw the biggest increase of penetration on the OEM services this quarter.
