IRCG Insights Blog

The Pandemic Revenue Index gave 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.

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.

Each week, we’ll be tracking a snapshot of year-over-year distributor revenue with our Pandemic Revenue Index (PRI).

As the pandemic continues to change the way salespeople interact with customers, forget about bandaging disruptions to old sales compensation plans. Instead, seize this moment as an opportunity to restructure your sales compensation plan.

This May, IRCG’s Mike Marks and Mike Emerson will be participating once again in the Sales GPS conference in Chicago, Ill.

The biggest mistake management teams make, when it comes to sales compensation, is using the pay plan to manage salespeople.

As practices continue to shift, there are two trends distributors should be paying close attention to in today’s market. One is understanding the role of technology, and the other is attracting and retaining talent.

Customer expectations have been changing for years, and the COVID-19 pandemic simply magnified and accelerated them in 2020.

The world of distribution has proud roots dating back to the end of WWII. But making historical assumptions on the journey of transforming sales models can result in costly pitfalls, especially in a post-pandemic world. The market is changing too quickly.

The world of distribution has proud roots dating back to the end of WWII. But making historical assumptions on the journey of transforming sales models can result in costly pitfalls, especially in a post-pandemic world. The market is changing too quickly.

As the pandemic continues to change the way salespeople interact with customers, forget about bandaging disruptions to old sales compensation plans. Instead, seize this moment as an opportunity to restructure your sales compensation plan.

Is your sales organization in February the same organization that you want as you rebuild? Or should you take this opportunity in the midst of disruption to restructure your sales force?

Manufacturers have many valid reasons to change channels in an updated go-to-market strategy. We know, as it is a core part of our consulting practice. But it may be unnecessary to make expensive and disruptive changes to a channel design when the easy answer may be to simply stop committing one of the deadly sins I outline below.

The pandemic has produced no shortage of articles telling you that the world has changed, and we should all prepare for the “new normal.” While the “new normal” will undoubtedly change many aspects of business, waiting for it does not address the problems and demands of today.

As we face ongoing shocks to the economy, everybody in the value chain will face the same challenges: Some price increases won’t stick, some cost reductions won’t be enough, and businesses that are undercapitalized will continue to fail.

In April 2019, a large national consulting firm surveyed 1,000 executives of large firms (classified as having 500+ employees) with the intent of discovering key points about their ability to leverage data in making business decisions.

Just because Amazon is a household name doesn’t mean distributors must emulate its every move to compete.

IRCG Managing Partner Mike Marks’s latest guest post for the National Association of Wholesaler-Distributors offers up suggestions for distributors looking to succeed in the shadow of Amazon. It’s not about beating the online behemoth, but about creating more value in your own niche, for your own customers.

Indian River Consulting Group managing partner Mike Marks spoke at the Barnes Dennig annual Seminar for the Wholesale/Distribution Niche. He presented on “Creating a Digital Roadmap to Drive Profits.”

Of the 56 sessions offered at the University of Innovative Distribution in 2020, IRCG consultants will lead eight. Senior Associate Consultant Dan Horan will be presenting as a faculty member for the first time at the 2020 University of Industrial Distribution (UID). With a background in marketing and advertising, Dan will dissect the four aspects of an effective and profitable branding strategy in his session, “B2B Branding Strategies for the 2020s.”

In the digital age, branding is no longer just advertising, or logos and slogans. Now, successful branding requires a comprehensive strategy and it has to include the entire customer experience. 

Your customers are used to making purchases online in their daily lives. And, more and more, they expect ecommerce in the working world, too. Too many distributors don’t focus enough on their B2B ecommerce – in some cases because they believe in-person field sales is their one and only go-to sales method, or because they feel they can’t compete with Amazon, so it’s pointless to invest in ecommerce.

Electro Federation Canada and the Canadian Institute of Plumbing & Heating are teaming up to feature our own Mike Marks for this timely webinar on Thursday, February 18 at 1:00 PM EST to discuss how the post-pandemic shift is shaping up.

Hear from MDM’s Tom Gale and IRCG’s Mike Marks as they talk with the winners of MDM’s 2020 Future Leaders Awards.

Hear MDM’s Tom Gale and IRCG’s Mike Marks talk with Dan Hill, CEO of Würth, about the company’s winning strategy.

Customer expectations have been changing for years, and the COVID-19 pandemic simply magnified and accelerated them in 2020.

In April 2019, a large national consulting firm surveyed 1,000 executives of large firms (classified as having 500+ employees) with the intent of discovering key points about their ability to leverage data in making business decisions.

When asked how you can provide them with more value, most customers will instantly suggest a price cut. After all, it is the easiest way to compare multiple vendors and as the old adage goes, “It never hurts to ask!”

Manufacturers have many valid reasons to change channels in an updated go-to-market strategy. We know, as it is a core part of our consulting practice. But it may be unnecessary to make expensive and disruptive changes to a channel design when the easy answer may be to simply stop committing one of the deadly sins I outline below.

If branded manufacturer margins decline, some distributors may consider expanding their model to add private label revenue. This could be a good idea for the company, but it’s only one component within the greater plan.

Forecasters are pointing to market slowdowns in early 2020. And while things are expected to pick up again in the back half of the new year, this is no time to abandon your playbook.