Usual suspects comprise PMPs’ growth obstacles, opportunities

By |  November 24, 2017

The usual suspects comprise pest management professionals’ (PMPs’) projected 2018 growth obstacles and opportunities. Top obstacles include lowballing competitors, healthcare coverage, and hiring and training technicians; top opportunities remain increasing referrals, repeat business and customer retention.

Michael Broder expects his company, New York-based BHB Pest Elimination, to increase revenue 25 percent this year and another 20 percent in 2018. But Broder’s growth plan hinges on BHB Pest Elimination finding and hiring qualified technicians.

Photo: ©iStock.com/JuSun

“We could increase our revenue from $2 million in 2016 to $3 million in 2018,” Broder says. “But to accommodate this growth, we’ll need to double our employment roster from three technicians to six next year.”

Broder says a tight labor market is making it increasingly difficult to recruit qualified technicians. Employee healthcare also remains an obstacle.

“With healthcare, we never know what to expect or budget for year-to-year — except that costs will increase,” Broder adds.

BHB expanded its geographical reach deeper into New Jersey by acquiring Tri-County Pest Control in May 2017. Broder says expansion in New York’s hot hotel market also is fueling BHB’s growth.

“At the start of 2017, we serviced two hotels,” Broder says. “We’ve since added 10 hotels — large New York properties, each with a few restaurants. It’s a nice, profitable niche for us. By 2020, we hope to safeguard 50 or more full-service hotels.”

2018 also looks like a banner year for McHenry, Ill.-based Schopen Pest Solutions.

“We are kicking a** this year, and next year looks like more of the same,” says President Pete Schopen, who is also PMP’s Start-up Diaries columnist. “We’re on track to increase our revenue 30 percent in 2017 to $1.5 million. Stink bugs, bed bugs, mosquitoes, fleas and carpenter ants are becoming some of our best sales reps.

“Our top growth obstacle and opportunity are one and the same for 2018: Getting all of our technicians licensed in multiple categories — in general pest control, mosquito control, food-handling establishments, etc.,” Schopen adds.
 

Top 2018 Obstacles

  1. Lowballing Competitors
  2. Health Insurance
  3. Hiring & Training
  4. Do-It-Yourself Competition
  5. General Economy

Top 2018 Opportunities

  1. Increase Referrals
  2. Increase Repeat Business
  3. Increase Customer Retention
  4. Upsell Services
  5. Increase Prices

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

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