Mike Emerson, Author at Indian River Consulting Group https://www.ircg.com/blog/author/mikeemerson/ Indian River Consulting Group specializes in helping distributors and manufacturers accurately diagnose problems and identify risk-bound alternatives so they can take their next steps confidently. Call us to learn more at 321-956-8617 or contact us now. Fri, 29 Apr 2022 21:06:57 +0000 en-US hourly 1 https://wordpress.org/?v=6.1.1 https://www.ircg.com/wp-content/uploads/2021/04/favicon.ico Mike Emerson, Author at Indian River Consulting Group https://www.ircg.com/blog/author/mikeemerson/ 32 32 5 Best Practices to Guide Your Sales Compensation Redesign https://www.ircg.com/blog/sales-compensation/5-best-practices-to-guide-your-sales-compensation-redesign/ https://www.ircg.com/blog/sales-compensation/5-best-practices-to-guide-your-sales-compensation-redesign/#respond Thu, 17 Jun 2021 19:42:00 +0000 https://www.ircg.com/?p=11569 For salespeople, the top predictor of income should be performance, not tenure. But all too often, it’s the other way around. The truth is traditional sales compensation plans that are tied to territory and tenure no longer work. If you haven’t already updated your sales compensation plan to meet pandemic-induced changes in how sales teams …

5 Best Practices to Guide Your Sales Compensation Redesign Read More »

The post 5 Best Practices to Guide Your Sales Compensation Redesign appeared first on Indian River Consulting Group.

]]>
For salespeople, the top predictor of income should be performance, not tenure. But all too often, it’s the other way around.

The truth is traditional sales compensation plans that are tied to territory and tenure no longer work. If you haven’t already updated your sales compensation plan to meet pandemic-induced changes in how sales teams interact with customers, it’s time to act. The key is to make sure your updated sales compensation plan is the right one.

Companies restructuring their sales compensation plans to meet the moment should take note of these five best practices:

  • Use the pay plan to incentivize sales teams.
  • Design for sustainable health.
  • Determine the best performance program for you.
  • Pay people according to their work.
  • Increase risk and reward.

Read the full article on naw.org: 5 Best Practices to Guide Your Sales Compensation Redesign – Value Creation Strategy #18 – NAW

The post 5 Best Practices to Guide Your Sales Compensation Redesign appeared first on Indian River Consulting Group.

]]>
https://www.ircg.com/blog/sales-compensation/5-best-practices-to-guide-your-sales-compensation-redesign/feed/ 0
Pandemic Revenue Index: A Look Back at 2020, an Unstable Year for Distributors https://www.ircg.com/blog/pandemic-revenue-index/pandemic-revenue-index-a-look-back-at-2020-an-unstable-year-for-distributors/ https://www.ircg.com/blog/pandemic-revenue-index/pandemic-revenue-index-a-look-back-at-2020-an-unstable-year-for-distributors/#respond Tue, 30 Mar 2021 19:29:00 +0000 https://www.ircg.com/?p=11559 About one year into the pandemic, we wrapped on our weekly Pandemic Revenue Index after 50 straight weeks, with the final index published for the week of March 1-5, 2021. We started the Pandemic Revenue Index to give distributors a weekly, quantified view into how other distributors in the industry were faring with respect to …

Pandemic Revenue Index: A Look Back at 2020, an Unstable Year for Distributors Read More »

The post Pandemic Revenue Index: A Look Back at 2020, an Unstable Year for Distributors appeared first on Indian River Consulting Group.

]]>
About one year into the pandemic, we wrapped on our weekly Pandemic Revenue Index after 50 straight weeks, with the final index published for the week of March 1-5, 2021.

We started the Pandemic Revenue Index to give distributors a weekly, quantified view into how other distributors in the industry were faring with respect to revenue declines in an unusual and uncertain time. We knew there was going to be instability; so, if distributors could access what markets were doing weekly, it would give them the perspective they needed to keep moving forward.

We saw both extremes over the past year – from a low the week of April 6, 2020, with an average decline of a little over 30%. And we saw a high (21.3% increase) in the index the week of Dec. 28, 2020, thanks to a favorable comparison due to how the holidays fell.

More recently, we’ve seen consistent increases that are likely to prevail moving forward.

Over the 50 weeks of the Pandemic Revenue Index, sales averaged out to be relatively flat (-0.1%), with the latter part of 2020 and the start of 2021 offsetting the deep declines we saw at the start of the pandemic.

Our index was started with eight distributors and grew to 14 from various industry segments. They are professionally-run businesses that showed an distinct ability to adapt well to the shifts we saw in 2020. Within the group, those that showed the strongest sales performance had some characteristics in common:

  • Sold into essential markets
  • Recognized early on that they’d need to leverage their balance sheets and increase safety stock for when demand returned
  • Capitalized on product opportunities outside of their core, including safety and cleaning supplies

Those who struggled the most either served markets that slowed or shut down entirely for a short period. But despite these challenges, distributors were resilient. They weren’t held back by demand constraints in most cases; it was more an inventory constraint.

They didn’t have inventory to meet the demand that was there. In fact, backorders are still a struggle for many distributors, with some products facing up to a year’s lead time. Think about how many suppliers contribute to one supply chain, with production across different countries for different parts. As production shut down with little to no warning due to COVID outbreaks or other restrictions, distributors were sometimes left shorthanded. Some still are. You can’t sell what you don’t have.

Based on the lessons of 2020, well-run distributors are adapting to better navigate future uncertainty with:

Greater supply chain resilience and inventory visibility. Distributors are using their technology to help them better see and manage demand and inventory levels, with min/max functionality that integrates lead times. Distributors are also expanding safety stock of their fastest-moving items and finding alternative sources of supply.

Transparency. Employees, customers and suppliers should all know what you’re doing and why you’re doing it, especially in times of instability and uncertainty. That’s how you ensure you’re building and not destroying trust.

Stress testing. A stress test measures a business’s resilience when subjected to unexpected shocks and subsequent operational changes. Analyzing different scenarios, a stress test determines where you stand with cash flow and identifies how much you would need to reduce costs. This information better prepares distributors when an unexpected event occurs.

Sales channel strategy to resist future shocks. Distributors are evaluating sales force structures and proactively integrating digital while building on remote selling skills brought on by the pandemic. They are evaluating selling costs and whether their current system reflects how customers actually want to buy.

Embracing data: Detail-oriented leadership actively fights for clean data to make sure it’s usable for guiding transformation processes to drive decisions and cut sales costs. For instance, segmenting customer data can help reveal customers who do not need the economic investment of a field sales rep, leading to a more productive territory design.

Thank you to the distributors that provided data each week for our Pandemic Revenue Index. Let’s hope we never have to do this again.

The post Pandemic Revenue Index: A Look Back at 2020, an Unstable Year for Distributors appeared first on Indian River Consulting Group.

]]>
https://www.ircg.com/blog/pandemic-revenue-index/pandemic-revenue-index-a-look-back-at-2020-an-unstable-year-for-distributors/feed/ 0
Distributor Weekly Pandemic Revenue Index (PRI): March 1-March 5, 2021 https://www.ircg.com/blog/pandemic-revenue-index/distributor-weekly-pandemic-revenue-index-pri-march-1-march-5-2021/ https://www.ircg.com/blog/pandemic-revenue-index/distributor-weekly-pandemic-revenue-index-pri-march-1-march-5-2021/#respond Tue, 09 Mar 2021 20:26:00 +0000 https://www.ircg.com/?p=11556 This week’s index will be the final one published by IRCG. We started the Pandemic Revenue Index (PRI) in March of 2020 and we’ve published it for 50 straight weeks. Our goal was to provide a contemporaneous view on prevailing business conditions as the coronavirus began disrupting business.  Publishing the index has been testimony to …

Distributor Weekly Pandemic Revenue Index (PRI): March 1-March 5, 2021 Read More »

The post Distributor Weekly Pandemic Revenue Index (PRI): March 1-March 5, 2021 appeared first on Indian River Consulting Group.

]]>
This week’s index will be the final one published by IRCG. We started the Pandemic Revenue Index (PRI) in March of 2020 and we’ve published it for 50 straight weeks. Our goal was to provide a contemporaneous view on prevailing business conditions as the coronavirus began disrupting business. 

IRCG Pandemic Revenue Index Mar 01 05 2021

Publishing the index has been testimony to the wholesale distribution industry’s incredible resiliency.  The index bottomed out the week of April 6 with an average sales decline of just over 30%. During the spring of 2020, the index saw nine straight weeks of double-digit declines. Since that nine-week period, the index has seen a grand total of two weeks where average declines were double-digits, the most recent being the week of September 7 (which was influenced by Labor Day). 

The index finishes on a high note with a weekly sales increase of 9.1%. Seven companies reported increases and six reported declines. 

Most of the 13 distributors that participated in this week’s index have been submitting data religiously from day one. A few have joined along the way. To all that have contributed, thank you! It has been a pleasure putting this together and here’s hoping we never have to do it again!

The post Distributor Weekly Pandemic Revenue Index (PRI): March 1-March 5, 2021 appeared first on Indian River Consulting Group.

]]>
https://www.ircg.com/blog/pandemic-revenue-index/distributor-weekly-pandemic-revenue-index-pri-march-1-march-5-2021/feed/ 0
Distributor Weekly Pandemic Revenue Index (PRI): February 22-February 26, 2021 https://www.ircg.com/blog/pandemic-revenue-index/distributor-weekly-pandemic-revenue-index-pri-february-22-february-26-2021/ https://www.ircg.com/blog/pandemic-revenue-index/distributor-weekly-pandemic-revenue-index-pri-february-22-february-26-2021/#respond Tue, 02 Mar 2021 20:20:00 +0000 https://www.ircg.com/?p=11552 Each week, we’ll be tracking a snapshot of year-over-year distributor revenue with our Pandemic Revenue Index (PRI). The index was created in March 2020 to try and provide a contemporaneous view on prevailing business conditions as the coronavirus began disrupting business. The index is made up of wholesale distribution companies in different industry verticals across …

Distributor Weekly Pandemic Revenue Index (PRI): February 22-February 26, 2021 Read More »

The post Distributor Weekly Pandemic Revenue Index (PRI): February 22-February 26, 2021 appeared first on Indian River Consulting Group.

]]>
Each week, we’ll be tracking a snapshot of year-over-year distributor revenue with our Pandemic Revenue Index (PRI). The index was created in March 2020 to try and provide a contemporaneous view on prevailing business conditions as the coronavirus began disrupting business. The index is made up of wholesale distribution companies in different industry verticals across the United States. Participants include companies with local and national footprints. The sample size for the week of February 22-February 26 is 13 firms.

IRCG Pandemic Revenue Index Feb 22 26 2021

Next week will be a complete year since the world changed during the second week of March 2020. This will be the penultimate publishing of the PRI. After next week, year-on-year sales change will have much less meaning as our baseline will no longer be before the pandemic. 

This week’s index returns to double digit growth after last week’s weather induced drop-off. Seven respondents reported increases with three greater than 50% while six companies saw declines ranging from 3% to 11%.   

After 51 weeks, the average weekly change of the PRI is -.28%. Four companies have seen double-digit growth during the period while two have seen double-digit declines.

The post Distributor Weekly Pandemic Revenue Index (PRI): February 22-February 26, 2021 appeared first on Indian River Consulting Group.

]]>
https://www.ircg.com/blog/pandemic-revenue-index/distributor-weekly-pandemic-revenue-index-pri-february-22-february-26-2021/feed/ 0
Distributor Weekly Pandemic Revenue Index (PRI): February 15-February 19, 2021 https://www.ircg.com/blog/pandemic-revenue-index/distributor-weekly-pandemic-revenue-index-pri-february-15-february-19-2021/ https://www.ircg.com/blog/pandemic-revenue-index/distributor-weekly-pandemic-revenue-index-pri-february-15-february-19-2021/#respond Wed, 24 Feb 2021 20:06:00 +0000 https://www.ircg.com/?p=11549 Each week, we’ll be tracking a snapshot of year-over-year distributor revenue with our Pandemic Revenue Index (PRI). The index was created in March 2020 to try and provide a contemporaneous view on prevailing business conditions as the coronavirus began disrupting business. The index is made up of wholesale distribution companies in different industry verticals across …

Distributor Weekly Pandemic Revenue Index (PRI): February 15-February 19, 2021 Read More »

The post Distributor Weekly Pandemic Revenue Index (PRI): February 15-February 19, 2021 appeared first on Indian River Consulting Group.

]]>
Each week, we’ll be tracking a snapshot of year-over-year distributor revenue with our Pandemic Revenue Index (PRI). The index was created in March 2020 to try and provide a contemporaneous view on prevailing business conditions as the coronavirus began disrupting business. The index is made up of wholesale distribution companies in different industry verticals across the United States. Participants include companies with local and national footprints. The sample size for the week of February 15-February 19 is 13 firms.

IRCG Pandemic Revenue Index Feb 15 19 2021

What is likely the result of nationwide weather issues, the index fell 7.2% compared to the same week in 2020. Those with operations in Texas were especially hard hit. 

Only four respondents reported increases ranging from mid-single digits to 21% while nine companies saw declines ranging from 1% to 42%.   

As we near the one-year anniversary of the index, we’ll be publishing some of the trends we’ve seen for the past 12 months as we wind the index down.

The post Distributor Weekly Pandemic Revenue Index (PRI): February 15-February 19, 2021 appeared first on Indian River Consulting Group.

]]>
https://www.ircg.com/blog/pandemic-revenue-index/distributor-weekly-pandemic-revenue-index-pri-february-15-february-19-2021/feed/ 0
Distributor Weekly Pandemic Revenue Index (PRI): February 8-February 12, 2021 https://www.ircg.com/blog/pandemic-revenue-index/distributor-weekly-pandemic-revenue-index-pri-february-8-february-12-2021/ https://www.ircg.com/blog/pandemic-revenue-index/distributor-weekly-pandemic-revenue-index-pri-february-8-february-12-2021/#respond Wed, 17 Feb 2021 19:30:00 +0000 https://www.ircg.com/?p=11544 Each week, we’ll be tracking a snapshot of year-over-year distributor revenue with our Pandemic Revenue Index (PRI). The index was created in March 2020 to try and provide a contemporaneous view on prevailing business conditions as the coronavirus began disrupting business. The index is made up of wholesale distribution companies in different industry verticals across …

Distributor Weekly Pandemic Revenue Index (PRI): February 8-February 12, 2021 Read More »

The post Distributor Weekly Pandemic Revenue Index (PRI): February 8-February 12, 2021 appeared first on Indian River Consulting Group.

]]>
Each week, we’ll be tracking a snapshot of year-over-year distributor revenue with our Pandemic Revenue Index (PRI). The index was created in March 2020 to try and provide a contemporaneous view on prevailing business conditions as the coronavirus began disrupting business. The index is made up of wholesale distribution companies in different industry verticals across the United States. Participants include companies with local and national footprints. The sample size for the week of February 8-February 12 is 13 firms.

IRCG Pandemic Revenue Index Feb 08 12 2021

After a double-digit growth week to start February, the index has returned to mid-single digits, which was the pattern through the better part of January.  

Seven respondents reported increases ranging from mid-single digits to 33% while six companies saw declines ranging from 1% to 12%.   

As we near the one-year anniversary of the index, we’ll be publishing some of the trends we’ve seen for the past 12 months as we wind the index down.

The post Distributor Weekly Pandemic Revenue Index (PRI): February 8-February 12, 2021 appeared first on Indian River Consulting Group.

]]>
https://www.ircg.com/blog/pandemic-revenue-index/distributor-weekly-pandemic-revenue-index-pri-february-8-february-12-2021/feed/ 0
Distributor Weekly Pandemic Revenue Index (PRI): February 1-February 5, 2021 https://www.ircg.com/blog/pandemic-revenue-index/distributor-weekly-pandemic-revenue-index-pri-february-1-february-5-2021/ https://www.ircg.com/blog/pandemic-revenue-index/distributor-weekly-pandemic-revenue-index-pri-february-1-february-5-2021/#respond Thu, 11 Feb 2021 19:20:00 +0000 https://www.ircg.com/?p=11539 Each week, we’ll be tracking a snapshot of year-over-year distributor revenue with our Pandemic Revenue Index (PRI). We would like to increase the sample size and are asking you to consider helping the industry through these uncertain and unprecedented times. If you are interested, reach out to Mike Emerson, at memerson@ircg.com. The sample size for …

Distributor Weekly Pandemic Revenue Index (PRI): February 1-February 5, 2021 Read More »

The post Distributor Weekly Pandemic Revenue Index (PRI): February 1-February 5, 2021 appeared first on Indian River Consulting Group.

]]>
Each week, we’ll be tracking a snapshot of year-over-year distributor revenue with our Pandemic Revenue Index (PRI). We would like to increase the sample size and are asking you to consider helping the industry through these uncertain and unprecedented times. If you are interested, reach out to Mike Emerson, at memerson@ircg.com. The sample size for the week of February 1-February 5 is 13 firms.

IRCG Pandemic Revenue Index Feb 01 05 2021

The beginning of February brings the index back to double digit growth with this week’s index at 14.1% when compared to sales from the same week in 2020. It’s been nearly five months since we’ve seen anything material on the negative side.   

Eleven respondents reported increases ranging from mid-single digits to above 50%, while two companies saw declines. 

As we near the one-year anniversary of the index, we’ll be publishing some of the trends we’ve seen for the past 12 months as we wind the index down.

The post Distributor Weekly Pandemic Revenue Index (PRI): February 1-February 5, 2021 appeared first on Indian River Consulting Group.

]]>
https://www.ircg.com/blog/pandemic-revenue-index/distributor-weekly-pandemic-revenue-index-pri-february-1-february-5-2021/feed/ 0
Distributor Weekly Pandemic Revenue Index (PRI): January 25-January 29, 2021 https://www.ircg.com/blog/pandemic-revenue-index/distributor-weekly-pandemic-revenue-index-pri-january-25-january-29-2021/ https://www.ircg.com/blog/pandemic-revenue-index/distributor-weekly-pandemic-revenue-index-pri-january-25-january-29-2021/#respond Tue, 02 Feb 2021 19:09:00 +0000 https://www.ircg.com/?p=11535 Each week, we’ll be tracking a snapshot of year-over-year distributor revenue with our Pandemic Revenue Index (PRI). We would like to increase the sample size and are asking you to consider helping the industry through these uncertain and unprecedented times. If you are interested, reach out to Mike Emerson, at memerson@ircg.com. The sample size for …

Distributor Weekly Pandemic Revenue Index (PRI): January 25-January 29, 2021 Read More »

The post Distributor Weekly Pandemic Revenue Index (PRI): January 25-January 29, 2021 appeared first on Indian River Consulting Group.

]]>
Each week, we’ll be tracking a snapshot of year-over-year distributor revenue with our Pandemic Revenue Index (PRI). We would like to increase the sample size and are asking you to consider helping the industry through these uncertain and unprecedented times. If you are interested, reach out to Mike Emerson, at memerson@ircg.com. The sample size for the week of January 25-January 29 is 13 firms.

IRCG Pandemic Revenue Index Jan 25 29 2021

The mid-single digit growth trend continues with this week’s index as it rose 6.4% when compared to sales from the same week in 2020. That marks 12 consecutive weeks of sales increases.   

Nine respondents reported increases ranging from 1% to 35% while four companies reported declines, ranging from 3% to 24%. As one contributor to the index pointed out, commodity prices have been on a strong upswing over the last few months, which has provided some inflationary lift. This is likely influencing the PRI.

Thanks for following along with us as we analyze the impact of this pandemic. As we collect more experiences, we will continue to share patterns as they emerge.

The post Distributor Weekly Pandemic Revenue Index (PRI): January 25-January 29, 2021 appeared first on Indian River Consulting Group.

]]>
https://www.ircg.com/blog/pandemic-revenue-index/distributor-weekly-pandemic-revenue-index-pri-january-25-january-29-2021/feed/ 0
Distributor Weekly Pandemic Revenue Index (PRI): January 18-January 22, 2021 https://www.ircg.com/blog/pandemic-revenue-index/distributor-weekly-pandemic-revenue-index-pri-january-18-january-22-2021/ https://www.ircg.com/blog/pandemic-revenue-index/distributor-weekly-pandemic-revenue-index-pri-january-18-january-22-2021/#respond Wed, 27 Jan 2021 18:36:00 +0000 https://www.ircg.com/?p=11529 Each week, we’ll be tracking a snapshot of year-over-year distributor revenue with our Pandemic Revenue Index (PRI). We would like to increase the sample size and are asking you to consider helping the industry through these uncertain and unprecedented times. If you are interested, reach out to Mike Emerson, at memerson@ircg.com. The sample size for …

Distributor Weekly Pandemic Revenue Index (PRI): January 18-January 22, 2021 Read More »

The post Distributor Weekly Pandemic Revenue Index (PRI): January 18-January 22, 2021 appeared first on Indian River Consulting Group.

]]>
Each week, we’ll be tracking a snapshot of year-over-year distributor revenue with our Pandemic Revenue Index (PRI). We would like to increase the sample size and are asking you to consider helping the industry through these uncertain and unprecedented times. If you are interested, reach out to Mike Emerson, at memerson@ircg.com. The sample size for the week of January 18-January 22 is 12 firms.

IRCG Pandemic Revenue Index Jan 18 22 2021

After a spike to start the year, some of it calendar driven, the index has reverted to mid-single digits for the second consecutive week. 

Overall, the index is up 3.9% versus last year with seven respondents reporting increases ranging from the mid-single digits to above 50%. Five companies reported declines, ranging from 1% to 36%. 

Thanks for following along with us as we analyze the impact of this pandemic. As we collect more experiences, we will continue to share patterns as they emerge.

The post Distributor Weekly Pandemic Revenue Index (PRI): January 18-January 22, 2021 appeared first on Indian River Consulting Group.

]]>
https://www.ircg.com/blog/pandemic-revenue-index/distributor-weekly-pandemic-revenue-index-pri-january-18-january-22-2021/feed/ 0
Distributor Weekly Pandemic Revenue Index (PRI): January 11-January 15, 2021 https://www.ircg.com/blog/pandemic-revenue-index/distributor-weekly-pandemic-revenue-index-pri-january-11-january-15-2021/ https://www.ircg.com/blog/pandemic-revenue-index/distributor-weekly-pandemic-revenue-index-pri-january-11-january-15-2021/#respond Wed, 20 Jan 2021 17:13:00 +0000 https://www.ircg.com/?p=11519 Each week, we’ll be tracking a snapshot of year-over-year distributor revenue with our Pandemic Revenue Index (PRI).

The post Distributor Weekly Pandemic Revenue Index (PRI): January 11-January 15, 2021 appeared first on Indian River Consulting Group.

]]>
Each week, we’ll be tracking a snapshot of year-over-year distributor revenue with our Pandemic Revenue Index (PRI). We would like to increase the sample size and are asking you to consider helping the industry through these uncertain and unprecedented times. If you are interested, reach out to Mike Emerson, at memerson@ircg.com. The sample size for the week of January 11-January 15 is 14 firms.

IRCG Pandemic Revenue Index Jan 11 15 2021

After a spike to start the year, some of it calendar driven, the index has reverted to mid-single digits. 

Overall, the index is up 4.6% versus last year with nine respondents reporting increases ranging from 1% to 51%. Five companies reported declines, ranging from 1% to 32%. 

Thanks for following along with us as we analyze the impact of this pandemic. As we collect more experiences, we will continue to share patterns as they emerge.

The post Distributor Weekly Pandemic Revenue Index (PRI): January 11-January 15, 2021 appeared first on Indian River Consulting Group.

]]>
https://www.ircg.com/blog/pandemic-revenue-index/distributor-weekly-pandemic-revenue-index-pri-january-11-january-15-2021/feed/ 0