Distributor Weekly Pandemic Revenue Index (PRI): May 11-15, 2020

Written by Mike Emerson on Tuesday, 19 May 2020. Posted in Pandemic Revenue Index

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.

This week’s index shows a sales decline over the same week in 2019 of 14.9%. The sample size for the week of May 11-15 is 10 firms, which is the same as last week. We now have eight weeks of double-digit average declines and five consecutive weeks with declines in the mid-teens.

IRCG Pandemic Revenue Index May 11 15 2020

The stability in the average sales change is also present within the sample as participating companies are not displaying much volatility. Those that generally have the larger declines continue to have the larger declines and those that have been almost flat are continuing on that trajectory.  

The largest decline this week was 38% while two companies squeaked out an increase of 1% over prior year. In looking for patterns in the data, the only one that emerges is that distributors where projects (infrastructure, multi-month construction) make up a material part of their business appear to suffering the least as of now.   

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.

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