Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from the line of Matt Troy with Citigroup.
Matt Troy - Citigroup
I had a question on the equipment sales weakness. You cited three things. I think fewer large transactions, vendors substantially reducing terms, and a change in pricing strategy. And then third, just the IT systems outage. I was wondering if you could directionally quantify in terms of the magnitude of the shortfall, which contributed what?
Matthew J. Espe
I think the way to think about it is the vendor program combined with our own B-to-C pricing strategy shift was probably worth 15 to 20, and the IT outage was worth about 5.
Matt Troy - Citigroup
Okay, now are you -- you’re talking about percentage?
Matthew J. Espe
No, I’m talking about million of dollars of equipment revenue, I’m sorry.
Matt Troy - Citigroup
Even better, thank you. In terms of -- I just want to be clear. The vendor, can you clarify -- when you talk about the longstanding promotional program, it sounds like it was reduced. You talked to the vendor, it was put back in place. I’m trying to reconcile that with your commentary about having higher inventory. It feels as if you are being bullied somewhat by our OEMs.
Can you just help us sort through what happened there? Why this is not indicative of a new level of relationship going forward or why this is now a one-time item and behind us?
Matthew J. Espe
Sure. I guess to try to answer the question firstly, there was no correlation between the vendor program and the inventory play. Different vendors, different dynamics. I believe we had -- we’ve had a very good run with the vendor program that we’ve been talking about. And I believe that the vendor in question decided to test the elasticity of demand. So while that program was eliminated, it was replaced with a less competitive program.
We were pretty vocal early in the quarter about our views around the program, embraced the new program, and try to run like hell with that. The results speak for themselves. The vendor immediately reversed their position and is right back in line and in place.
So I wouldn’t categorize it as a change in the dynamics. Let’s call it a testing of the waters. And frankly, Matt, we did the same thing on our own pricing. I mean, we looked at our performance in B-to-C, which has been outstanding the last several quarters, and started to test price elasticity and we obviously discovered that that’s not elastic. So the vendor and we reversed our programs.
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