Distributor Weekly Pandemic Revenue Index (PRI): March 23-27, 2020

Written by Mike Emerson on Monday, 30 March 2020. Posted in Pandemic Revenue Index, Business Strategy, Distribution

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

3 23 to 3 27 logo

Unfortunately, the industry continues to reflect a state of decline. The distributor revenue decline this past week was 23.51% compared to the same week in 2019. 

With the spike in unemployment claims, there should be no surprise with this decline. The safe bet is that the rate of decline will only increase in the short term, so stay tuned for updates next week. 

You may notice that our value from the week of March 16-20 is now showing -2.23% instead of -5.56%. This is due to having increased participants in the sample and us having included their historical sales into our baseline.

The sample size for the week of March 23-27 data is eight firms. We expect that the sample size will continue to increase weekly. 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, IRCG Partner, at memerson@ircg.com.

All distributors reporting data for the PRI saw decreases in sales relative to last year.  We have had discussions with distributors that have not seen any decline, but the jury’s out on whether it’s just a matter of time for them, too. Now is the time to have a plan if the trend continues.

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.

About the Author

Mike Emerson

Mike Emerson

Mike Emerson has been a IRCG partner since 2004. Mike joined Indian River in 1998 and has worked with hundreds of distributors and manufacturers of all sizes and within many lines of trade.

As a Partner in the firm, Mike has managed a broad array of projects. His main focus areas include: compensation design, strategy facilitation, market research, and data modeling and analysis.

Mike writes extensively on distributor and marketing channel topics and is frequently quoted on contemporary issues. He has authored four books, published by NAW: What’s Your Plan? Smart Salesforce Compensation in Wholesale Distribution, Working at Cross-Purposes: How Distributors and Manufacturers Can Manage Conflict Successfully, Value Creation Strategies for Wholesaler-Distributors and What’s the Right Plan? Effective Sales Incentive Design for Wholesaler-Distributors. Mike is also a university lecturer on marketing topics.

blog comments powered by Disqus