3 REASONS WHY MOST PEST CONTROL BUSINESSES WILL NEVER GROW!

Have you ever wondered why, even though you work 347 hours every week, you just can’t seem to get ahead? Does it bother you? No matter what you do, your pest control business just can’t get to the next level. You’re not alone. In fact, take out your local telephone book or do a quick Google search and look at how many competitors you have right beside you.

  1. You’re playing the wrong game.

Here’s what I mean. When most people start a pest control business they do it the old fashioned way. They get their license, buy their truck and equipment and run a yellow page ad. Then they wait for the phone to ring. Then, when they discover the yellow pages doesn’t work for them – they try one of those direct mail companies and when that doesn’t work, then they try a local newspaper and the cycle goes on and on. They spend a lot of money but only sell a few jobs, no matter what they do – they just can’t seem to get ahead. Let me explain this way…

Remember Monopoly? The board game we all played when we were kids? It’s a game made for about 4 players who each start with $1500 dollars. Then everybody takes turns going around the board trying to buy up the best property so they can collect more rent than the other players and put them out of business.

Now let’s look at the pest control industry in the context of the Monopoly game.

In the real world, we don’t just have 4 players anymore. In fact, in most markets, we have hundreds. Two of the players started the game a hundred years ago and they own most of the good property on the board, plus, all of the hotels and most of the houses. The other two hundred players start the game, not with $1500 dollars – but with about $25. So, they’re just trying to get around the board without hitting those expensive properties. And, if they’re lucky they might be able to scrape up enough money to buy, “Baltic Avenue.”

Sure, every now and then you will sell a termite job and put a little money in your pocket, but that’s just passing go, you collect $200. But who can build any wealth with that? It’s like selling 5 termite jobs a month. It feels good to put a few bucks in your pocket but how much long term wealth is that really building for your family? What happens when you get too old to crawl under houses? It will happen to us all.

  1. The old-fashioned ways of selling termite & pest control service don’t work anymore.

I don’t know about you, but I was taught to sell termite and pest control the old-fashioned way. My boss used to say, get out of the office and go door to door and aggravate enough people to give away 4 free inspections today. I used to think, “Who wants to waste their time begging people to let me do an inspection they don’t even want?” There’s got to be a better way…

Not to mention the do-not-call list and the fact that most of the good neighborhoods have those no solicitation signs posted everywhere. In fact, if you get caught doing these things these days, you’ll get one of those bright orange cards that say’s, “Go directly to jail. Do not pass go – do not collect $200 dollars.”

So what’s left? Let’s take a look at how our industry gets new customers through advertising.

Everybody loves to buy big yellow pages. It must be the place to be because every yellow page book in the county is full of BIG FULL PAGE pest control ads. The yellow page reps always tell us, buy the big ads and you will get all of the calls. We know that’s not true, but we do it anyway – throwing thousands of dollars away every year – just to stroke our egos.

Yellow page ads do work if there are only 5 pest control companies advertising there.  But in most markets there are 50 to 200 pest control companies in the book. How does a homeowner make a choice? The truth is, it’s a crap-shoot, and the consumer knows it and by running those big yellow page ads you might as well be running around that Monopoly board, trying to pass go so you can collect another measly $200 dollars. But watch out! There are a thousand other bugmen running their ads there too.

The truth is, if you’re going to succeed in this business you have to create a marketing machine that works, 24 hours a day, 7 days a week. One that will make the people in your local market KNOW that you are the only bugman to call! There is no other choice. And, you can’t do that by playing the game the old-fashioned way.

  1. It’s because you’re still playing by rules that were written over 100 years ago.

Did you know? The average pest control company sells about 5 termite jobs per month, some months more than others, but around 5 a month or about 60 per year?

Then, most companies charge about $100 or so for their annual inspection fee.

Now, how does that format compute into wealth building? Let’s take a look. Forget about the initial charge – Remember, we’re still playing Monopoly?

Think of the initial treatment price as the $200 you receive in the Monopoly game for passing go, and we know that’s not enough to build the wealth we need. We must build reoccurring revenue that continues year after year. That’s where the wealth is.

So let’s start looking at the future. How much annual revenue growth did you achieve last year? In other words, on January 1st of next year, when you turned the lights on – how much revenue did your business have on the books before sold your first job in the new year?

Let’s do the math for an average small pest control company…

If we sell 5 termite jobs per month x12 months = 60 new customers. And, if we charge $100 for the average annual inspection fee that means our average annual growth is around $6,000 dollars.

Do you see the problem? $6,000 dollars won’t even buy you a decent used car. Even if your company is doing 3 times that many jobs per year you still can’t grow fast enough to make a difference in your life.

So, “How do I SUCCEED?” you ask? SIMPLE! Stop playing a game that you can’t win and start playing a new game that you can!

Here are the 4 major components that you must have to run a fast growing termite and pest control business that is building real wealth for your future.

  1. You must have a business that’s based on systems, services and technology;
  2. You must have a marketing machine that consistently places new customers at your doorstep, winter or summer without relying on a salesman;
  3. You must have a high repeat and referral client base that is recession proof;
  4. And finally, you must have a system that eliminates all of the competition – whether there’s 5 or 500 in your market.

In closing, winning in the pest control business isn’t easy, you’ve got to create a concept so unique, so good, so unparalleled that it makes every prospect say, “I’d be an absolute fool to do business with anyone else.”

At ValuePest® we have created the kind of business model and concept that will rocket pest control operators into the number one spot in their local markets. How about you? Are you ready to move your company to the next level?

If you have ever thought about starting your own pest control business or if you would like to get more information about how joining our exclusive franchise system can help you take your pest control business to the next level, we invite you to pick up your phone and give us a call at 1-866-DONT-OVERPAY and we’ll be glad to help you in any way we can.

 

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