Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Robert Dodd - Morgan Keegan & Company
Robert Dodd - Morgan Keegan & Company
On the pricing initiative with Wal-Mart, an $8.00 fee, I’m just thinking back in the past on pricing there’s been some flexibility and some ability to get back pricing when you’ve cut on the FX side, but generally speaking I don’t recall you or frankly any competitors managing to get pricing back up after cutting the headline fee. How confident are you that you’re going to be able to get it, to raise that price again after the promotional period and get the consumer and the market share to stick.
Anthony Ryan
This promotional period is for 90 days and we worked with Wal-Mart to encompass the Mother’s Day period and that’s why we’re also focused on the US to anywhere international segment as part of this promotion and at the end of the 90 days that pricing expires.
At that point we’ll be able to fully evaluate the impact of this and of course we’re doing this to increase the consumer awareness and try to increase our market share at the same time.
Robert Dodd - Morgan Keegan & Company
On PSD, I know you’ve continued to kind of expand the owned locations, what kind of thought have you given into maybe holding off on that. Obviously they cost money up front ultimately the returns might be better, but with PSD coming and potentially opening the agent channel much wider in those markets, what thought have you given to holding back on expanding owned to go for the more variable cost agent model a little later down the road.
Anthony Ryan
We look at payment services first as an opportunity that opens up the different classes of trade and we’ll be evaluating both our company owned store strategy as well as the agent model that we traditionally had. Having said that we’re pleased with the operating performance of the company owned stores. They’ve done very well and we can generate a lot of volume in concentrated ethnic areas by opening up those store locations.
So we’ll take a very disciplined approach and we’re looking for a balanced solution to drive profitability through both strategies.
Operator
Your next question comes from the line of Adam Tuckman – GoldenTree Asset Management
Adam Tuckman – GoldenTree Asset Management
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