Press Release
CARMEL, IN — The cost of running a representative agency continues to rise. While inflation and broader economic pressures affect all industries, NEMRA representatives face additional burdens driven by expanding manufacturer expectations, increased service responsibilities, and evolving distribution models.
Over the past decade, NEMRA representatives have absorbed growing responsibilities — including expanded customer service functions, greater investment in marketing and outside sales resources to drive contractor and end-user demand, and the addition of product specialists — even as average commission rates have declined.
“The expectations placed on NEMRA representatives have increased significantly,” said NEMRA President and CEO Jim Johnson. “Our representatives are investing more than ever to grow sales and market share for their manufacturers — often while compensation structures remain under pressure.”
At the same time, the distribution landscape has shifted dramatically. Industry consolidation and major investments in regional distribution centers (RDCs) and central distribution centers (CDCs) have improved efficiency and inventory management. However, these operational gains frequently result in products shipping across traditional rep territories, creating compensation challenges.
NEMRA representatives support distributor productivity improvements — provided compensation accurately reflects local sales influence and market development efforts. Ensuring that alignment is where Point-of-Sale (POS) reporting becomes critical.
In 2014, NEMRA launched a landmark study examining the state of POS reporting (Read the 2014 Report Here) . The research redefined POS as “Place of Sale,” focusing on the geographic destination of material rather than end-customer identity. This approach protects distributor customer relationships while providing representatives with the zip code-level data necessary to compensate their sales teams appropriately.
The study revealed:
Between 10–40% of a representative’s compensation may be affected by POS reporting gaps
Representatives may redirect orders 25% of the time to distributors where commissions can be reliably tracked
Based on these findings, NEMRA developed POS (Place of Sale) Minimum Reporting Standards, endorsed by more than 50 distributor entities and 50 manufacturer entities. (Read Standards and Endorsements Study Here)
The issue remains highly relevant today.
At the 2026 NEMRA Annual Conference, point-of-sale (POS) data was a featured topic during a session moderated by NEMRA Chair Troy Jennings of JMA Group. Panelists Terri Dumas (RAB Lighting), Patrick Knight (IDEA), and Curtis Seare (FlowRMS) shared insights ranging from evolving POS methodologies to administrative data transmission and EDI utilization.
An open Q&A session addressed practical challenges, including data acquisition from distributors, manufacturer use of POS information and compensation alignment, reporting transparency, and EDI standardization.
“While progress has been made, there is still work to do,” Johnson said. “Point-of-sale reporting is not simply an administrative exercise — it directly impacts fair compensation, territory integrity, and the long-term health of NEMRA manufacturer representatives. Without proper sales compensation, representatives cannot provide the level of sales support our channel depends on.”
The NEMRA Strategic Advisory Council (SAC), NEMRA Manufacturers Group (NMG), and Board of Directors will continue collaborating with channel partners to advance solutions that promote transparency, fairness, and sustainable growth.
For more information on NEMRA’s POS Minimum Reporting Standards, visit www.nemra.org.
