Light at the end of the mud tunnel

Photo: iStock

For several years running, our media brethren have preached economic doom-and-gloom. “What goes up must come down” has been the mantra of too many for too long.

It’s time to embrace a different law of nature: “Sometimes, what goes down comes back up!”

New-home building, existing-home sales and termite swarms are coming back. Is your termite business following suit?

Please read, believe and share with your sales staff and termite technicians, these 13 “starter” reasons to be optimistic about your termite business in 2013 and beyond:

1. Existing home sales rose 9 percent last year, and are expected to repeat the feat in 2013.

2. Record-low mortgage interest rates also are driving refinancing-related wood-destroying insect/organism (WDI/WDO) inspections.

3. New-home construction rose 28 percent in 2012 and is projected to grow another 14 percent this year.

4. One-third more pest management professionals (PMPs) than did last year now report swarms help generate 10 percent or more of their termite management revenue.

5. The country’s overall economy, while sketchy at times, is experiencing more peaks and fewer valleys than in recent years.

6. Termite technologies continue to advance and offer new methods to improve sales, margins, control and customer satisfaction. In turn, increased customer satisfaction will spark increased renewal business and referrals.

7. Advancing termite monitoring systems offer PMPs year-long add-on revenue stream opportunities.

8. Many PMPs are just beginning to tap the upsell opportunities of termite exclusion products and related installations.

9. Many now also are just beginning to offer repair of termite-damaged wood, or are forging lucrative two-way referral relationships with contractors.

10. Much revenue remains to be realized by networking more regularly and effectively with realtors, lenders, builders, homeowner associations, etc.

11. The median home sale price in the U.S. rose $9,900 to $176,000 in 2012. Thus, the cost for initial termite inspections and treatments is becoming an even better bargain — now down to well under 1 percent of a typical home’s value.

12. Termites work around the clock, damaging U.S. structures to the tune of an estimated $6 billion annually. Many home and business owners let their guards down in recent years and let their termite protection lapse. There’s plenty of pent-up demand in existing structures (residential and commercial) not currently being sold.

13. I’m confident most PMPs will rise above and make the self-fulfilling prophecy work for them in 2013 and beyond.

You can reach Whitford at mwhitford@northcoastmedia.net or 216-706-3766.