Darrell Webb

Well, last year on one of the conference calls we discussed high single digit inflation occurring through most of a year ago and I would say that we’re seeing at least that same level on the downside this year.

William Armstrong – C. L. King & Associates, Inc.

Wow, that’s substantial.

Darrell Webb

It absolutely is. Really, several factors there, labor rates falling again in Asia after the increases a year ago. Some of the tax credits that were taken away a year ago have been reinstated and then thirdly, the transportation, the fuel expense to get the goods across the water is down substantially.

William Armstrong – C. L. King & Associates, Inc.

Now, does any of that help Q4 or are we really going to see that this year?

Darrell Webb

That is entirely this year; none of it would have helped Q4.

William Armstrong – C. L. King & Associates, Inc.

I see. Thank you.

Darrell Webb

Thank you Bill.

Operator

Our next question comes from the line of Jeff Stein with Soleil Securities. Your line is open.

Jeff Stein – Soleil Securities

A couple of questions Darrell, first of all just to follow up on the last question on pricing, if costs are coming down are you guys intending to capture that extra margin or are you going to give it back to the customer?

Darrell Webb

We will probably keep a close watch on competitive movement to see what’s going on in the marketplace and not be first to move. My experience shows that just lowering everyday prices in our industry does not drive a lot of extra volume. What really helps drive the volume is being a bit more promotional so you might see us investing some of that savings in more discounting, more couponing to drive additional footsteps in to the stores.