One of the largest roadblocks I have run into as a consultant is the uneasiness some business owners have in changing procedures, marketing, protocols, pricing, etc. Change terrifies them.
One particular company I was attempting to work with is facing the real possibility of folding in the next couple years because they refuse to adapt. They are still operating without pest management software and still producing routes manually. All documentation is on file cards, like the old Dewey Decimal System at the library.
Refreshingly, Marcus Richardson of Fishers, Ind., is not in that camp. He is taking his company, Finally Pest Control, into a new direction.
Desire to diversify
Since starting his business more than seven years ago, Richardson has focused on government contracts and similar accounts. Nearly 100 percent of his customers are commercial. What makes him unique is that he is covering the entire Hoosier State just by himself and a handful of techs. His growing company isn’t in desperate need of an overhaul, but he would like to diversify. Therefore, he has started taking on residential clients.
“I have a small number of residential customers. I need to add more so all of my eggs aren’t in one basket,” Richardson told me.
At press time, he has 25 residential clients. Over the next few years, however, he would like to have a mix of 60 percent commercial and 40 percent residential.
When I was creating my March column, I had Richardson list the opportunities on his Strengths, Weaknesses, Opportunities and Threats (S.W.O.T.) analysis. Most of his opportunities were tied to increasing his residential base: statewide expansion, word-of-mouth referrals and hiring more techs. As he changes the direction of Finally Pest Control and adapts to a new market, I foresee five challenges on which to focus:
1. Finding clients
Richardson and I brainstormed and came up with several economical ways to find clients, including:
- Chamber of Commerce/networking groups
- Thumbtack website (implemented and already gaining traction)
- Google Local Services Ads
- Referrals from several of his commercial accounts
- Free advertising from the State of Indiana online vendor portal
- Affordable SEO marketing such as BrightLocal
- Local Facebook groups
- Vendor Days events at senior living communities
2. Scheduling and training
Richardson is going to focus on the Indianapolis market for new residential clients, even though he covers the entire state for government work. He is concerned about rescheduling, which can be a problem with residential customers. He also is training some members of his team to become universal technicians, for both residential and commercial work.
3. Service frequency
Richardson has opted for quarterly services, treating both the interior and exterior of residential accounts.
4. Pricing
Obviously, pricing pest control services for residential homes is different from government contracts. For now, he is charging two rates for his quarterly service program: $135 for homes that are less than 2,000 square feet, and then $10 for every additional thousand square feet.
5. Using service agreements
Government jobs and most commercial accounts require bids and contracts. But for residential accounts, some people will balk at contracts. Service agreements, on the other hand, can be vital in setting expectations between the pest control company and the client.
Protecting the business
There is nothing wrong with being a commercial-only company, of course. McCloud Services, a Terminix company based in Hoffman Estates, Ill., has been a leader in commercial accounts for decades. Ecolab, which provides pest control for hotels, restaurants, warehouses and the like is a $15.32 billion behemoth — although granted, some of that revenue is earned from non-pest control services.
So, even though Finally Pest Control will continue to provide great service for its commercial clients, Richardson knows he is just one misstep away from losing a significant source of income.
“Government jobs are less forgiving,” he explained to me. “One slip-up and you can lose an account. I feel that, if the worst happens and a mistake is made, most residential clients would allow us a chance to solve a problem before canceling.”
This strategy is much better than merely “adapt or die.” It’s more about how to “adapt and live”!
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