Hoonigan - Current

Dawn Audano: Morning. So I was like, this is fun.

Andrew Booth: Yeah.

**+1 321-***-**52:** I don't miss that.

Dawn Audano: Well, I just. It's hard to remember to pack everybody's stuff, plus a shovel and toys, scrapers. So I'm like, oh, got to put the shovel in the car.

Andrew Booth: Yeah.

Chris LaFay: My wife just got back from Disney on yesterday, and she had to pack for every season. It was cold, it was rainy, and.

Andrew Booth: It was also hot.

Chris LaFay: So it was. It was a fun time, though. The kids enjoyed themselves, and that's all that matters. Not my kids, by the way. I do not have any kids. These are my nieces and nieces, not nephews, so.

**+1 321-***-**52:** Gotcha.

Starlie: Hey.

**+1 321-***-**52:** Hi.

Chris LaFay: You up to anything exciting, Starly?

Starlie: I went dune camping over the weekend. That was super fun.

Dawn Audano: What is that just it.

Starlie: We're just camping on the dunes.

Andrew Booth: Yeah.

**+1 321-***-**52:** Interesting.

Starlie: It was fun. We have. We have a Polaris Pro R. And so it. It does really, really well on the. On the dunes. Nice to be outside. It was beautiful. 70s during the day.

Dawn Audano: We are living different lives, Starly. I can't relate to you. I'm sorry.

Starlie: Oh, man. It was amazing. How do you get bicycles right now?

Chris LaFay: How do you not get sand all in the tent that you stay in?

Starlie: Well, we have an enclosed trailer, and it's set up. There's, like, a bed in there, and. But sand gets everywhere. You can't not get sand everywhere, but you just, you know, sweep it daily and it's fine. Yeah. Sand isn't going to hurt anybody.

Chris LaFay: That is true. Thought she looks super relaxing just being out in the middle of.

Starlie: Oh, yeah.

Chris LaFay: Campfire, Emptiness and whatnot. Yeah.

Starlie: Super fun, relaxing.

Dawn Audano: All right, I think we have everyone here. Hey, Tom. I see you just joined. Can you hear us?

Andrew Booth: Yeah.

**+1 321-***-**52:** Can you hear me?

Dawn Audano: Yep, we can. So the main thing I have on my agenda right now is to just touch base on E. Commerce. Our team's been keeping up the website imports, making sure that at least the content on the sites are up to speed. But just wanted to see what's going on with MasterCard if there's any update on Authorize.net or anything along those lines.

**+1 321-***-**52:** Yes. So, good news. We got authorization to proceed with authorize.net. From the Finance team. They're in the process right now of establishing an agreement or contract or whatever. Needs to be done to give us access to operate that net. And it's all foreign to me as to what has to happen or what's. Being done, but it's my understanding that Michael Phelps from Phillips from finance is working on the agreement right now. So once we have that in place. Then Josh and you guys can get involved in the development side to get that integrated into the system.

Chris LaFay: Fantastic.

Dawn Audano: Andrew, is there anything. Oh, sorry, go ahead.

**+1 321-***-**52:** Last week, last week Dave requested some information about average number of orders per. Month, average dollar value per revenue value for each of the sites. And so we provided that information, Walter, with the caveat that pro comp is artificially low because we were suppressing it because of the fraud to revenue was not worth it. So we took the site down earlier.

Andrew Booth: So.

**+1 321-***-**52:** So I think, I think they've got the detail in terms of like. The amount of volume or traffic that'll be driven through that portal. And so I think it's now a matter of getting, getting the agreement in place so we can execute.

Dawn Audano: And that'll just happen sometime this week. We're hoping.

**+1 321-***-**52:** It'S finance. So, you know, could be a week, could be a month, could be, you know, I really don't know. I will follow up with, with them. Today or today and see if they need anything else and what's next steps for them and get some insight for that.

Dawn Audano: Okay. Andrew, is there anything you would need to know at this point or we're just going to wait till that's all in place?

Andrew Booth: Yeah, I mean at this point it's really a wait and see because.

**+1 321-***-**52:** We.

Andrew Booth: Wouldn'T really be able to start the setup until we've got the authorized. Net account in place because installing the plugin takes like 5 minutes.

**+1 321-***-**52:** Well, we will, we'll be able to. Will we know or can we do. Something in terms of like the test. Environment or whatnot to verify that we. Have in fact addressed the fraud or to just simply having authorizer.net in effect. Is fraud free?

Andrew Booth: I would not use the words fraud free because obviously no matter what you use, you always have to do best practices to prevent it. Realistically speaking, we're not going to know until we put it in a live environment. What I would say we do though is set it up in the staging environment first and go through and do some internal testing with bad card information and things like that to make sure that we have all the proper authorized. Net settings set up first. Then once we verify that we've got all the proper fraud filters in place on the authorized. Net account, then we can look at moving it live. But it's really just a matter of getting the settings right within authorize. Net at this point.

**+1 321-***-**52:** Okay. That's something that you and Josh and. The others can work through in the. Test environment to make sure that we. Were Happy with the settings and then we go live?

Andrew Booth: Yep, definitely.

**+1 321-***-**52:** All right, well, I guess we'll just have to wait and get that account information.

Dawn Audano: Have you gotten any update from MasterCard? Also, just out of curiosity.

**+1 321-***-**52:** I had. Heard that they proposed a fine of 15,000 and then it was negotiated down. To 5,000, but I haven't seen final details on it. So I think that's going to be. Our penalty for the violation. And like anything in life, you've got to decide whether or not it's worth. Fighting or just, you know, kind of like any other litigation type thing where. Then it's just easier to settle or. Take your lumps than to push back. So as much as I want to. Blame the system, including payment tech, you know, I can't. We can't even talk to humans half the time, so I'm not sure how. You negotiate a settlement with them.

Dawn Audano: Yeah.

Andrew Booth: So.

**+1 321-***-**52:** But that's again, outside.

Dawn Audano: I.

**+1 321-***-**52:** You know, my world is operations. We just make things happen. The finance guys are the ones that. Control the purse strings or the control the screen as well. So in there at a Denver and never met them and don't know. Know anything about them, don't know whether or not they even appreciate what it is we do. It just is what it is.

Dawn Audano: Okay, well, they need anything from us to figure out if they can negotiate it down, let us know. We're here at a defend as much as we can. What's been going on, how we've been trying to stop it from happening.

**+1 321-***-**52:** Well, I know, I know. Josh gave them a bunch of information and then you guys put together a treatise as to the things we had done over the course of time, submitted all that to finance. And then when I saw what they submitted to MasterCard and Payment Tech was none of the technical information we shared. It was, hey, we had the. We're aware of the issue and we took the site offline. Like, that's not a defense of our position. That's just almost like admitting guilt. But again, it's, you know, their vendor. And here we are.

Andrew Booth: Well, it just means that if you end up paying a fine, we just got to drive that much more revenue to cover it.

**+1 321-***-**52:** Yeah, I got to sell a lot of D rings to make up for $5,000 when it comes to, you know, $7 GP. But we'll get there. A couple of tents will go dig us out of a hole.

Chris LaFay: Yeah.

**+1 321-***-**52:** The team put together a bunch of really great just February promotions that unfortunately we can't go live with. But all Jeep soft tops are on Sale. All Bronco products are on sale. Last month all Toyota bumpers and side steps and everything were on sale. So these are, these are a move. Or high demand products that we're trying to get some traction on. And unfortunately the only place that's happening. Right now is with our partners like Quadratech and full of parts that have jumped on the campaign. But we have not been able to do any advertising or to promote that or sell that. We would love to get it turned back on. So if I can get, if I can get clarification and information from finance. As to the account being activated. I was telling our team I think we could be online a week or two from now. I said I was confident that with the contracts done with authorized.net that we'd be selling in February. That's our goal.

Andrew Booth: It's definitely doable from our side. There's that. I also wanted to add since we were kind of in a holding pattern on everything E Commerce, we ran some Semrush so we have a paid Semrush account that we use. We ran some Semrush reports and audits on the website to see are there other areas we can make improvements on. And there's definitely a lot of what I would call low hanging fruit from an SEO standpoint that can be done on the website to improve some issues that are definitely on Smittybilt.com so we've got some places we can win that. Hopefully if we can do that, if not in February, maybe some March and whatnot. Lift the numbers a little bit to help improve revenue and sales going into busy season.

**+1 321-***-**52:** Great. Let's, let's just keep those hours on the bench right now for this authorized.net sprint. If it looks like it's taking time. Maybe we can use consume some of those hours on some of those initiatives.

Andrew Booth: Okay. Yep. Perfect. In total agreement with that. Yeah.

**+1 321-***-**52:** So I'm, I'm just. As we're talking I'm drafting a letter. To finance getting clarification like Daniel from us and or what are the next steps before we can get information over the development team to get coding. So I'll share that with with Josh as well and we'll give you guys some info once we hear.

Dawn Audano: Sounds good.

Chris LaFay: Wonderful.

Dawn Audano: Well we'll be ready for that when it gets over to us. Otherwise we're just here if you need us. So reach out.

**+1 321-***-**52:** Yeah, we got to get the site back online e commerce wise and then we can lean into improvements. But right now I don't really without. The ability to transact. It just kind of sits there, does nothing. So, yeah. All right. Anything else?

Dawn Audano: That's it. That's all we have right now. Or excited that it's at least hopefully in the not maybe one week to one month future that we'll have everything from finance.

Chris LaFay: Yes.

**+1 321-***-**52:** Yeah. I, I, you know, I, I was, I would say I was shocked how quickly they actually turned around and said, yeah, we think that solution will work. And I think it's because they got that nods from MasterCard and Chase. I said, yeah, that's a good solution. Fogging up. That was a solution Josh Kellner proposed a year and a half ago before we went live and, you know, full circle. But it's their idea now, so it's a good idea. But I'm pleasantly surprised that we did. Get the green light. And so it's just a matter now of getting all our affairs in order for sure. Okay, well, give me a couple days. We'll communicate via email and then maybe set up a quick call if we. Need to get a technical team together. But I know you guys work with. Josh quite regularly off outside of this call, so if the email comes through and just says we're good to go, then we can just work together by email or quick call.

Chris LaFay: Sounds like a plan.

**+1 321-***-**52:** Okay. All right, stay tuned. Thank you, everyone.

Andrew Booth: Thank you.

Dawn Audano: Bye.

Andrew Booth: Bye.