PHOTO: MIAKIEVY/DIGITALVISION VECTORS/GETTY IMAGES
I typically stay in a hotel for work and personal travel between five and 15 nights a month. Unlike pre-COVID-19, most hotels do not provide daily bedding changes, unless prompted. The pandemic very much enabled this to reduce virus transmission. I was fine with it. With COVID-19 behind us, this practice has not changed in most hotels while prices have kept pace with inflation. The reduction in hotel staffing is significant, resulting in reduced operating expenses.
This reduction in labor cost, with different rationale, has also been applied to pest control. With the use of primarily external services for residential treatments along with fewer yearly visits, yearly costs have remained the same. Customers have benefitted from less disruption and products inside their homes. In most cases, this has been well received with large labor savings.
Significant labor savings and efficiency in any business is a big deal.
So what trending retail opportunities are next? I will review several with my score for the likelihood of exploitation.
Gratuity request while paying
I like this for some transactions like a haircut, but I find it odd when buying a $14 beer at a Phillies game. The different intimacy of engagement is obvious. I would give this a 65 percent chance of widespread implementation for pest control operators. Applicators who are very good will benefit.
Extra fees
The travel and vacation industries are prime examples here. My vacation rental for $200/night is more than $2,000 for the week, thanks to the myriad of fees added on. This one seems more like a way to make nightly cost look lower when comparing options. I would give this a 25 percent score, with most pest management professionals (PMPs) not supporting this since they routinely deal directly with customers.
Extended warranty
Extended (but limited) warranties have been developed in the automotive industry, where we are making a large purchase that we need to last at least five years. Having the opportunity to present personally when selling the vehicle is also very effective.
Having this pitched when I’m buying a new coffee maker, however, is less logical. Even if I had the warranty and my coffee maker failed prematurely, I would have forgotten or lost any documentation.
PMPs already handle this well with wood-destroying insect (WDI) warranties. Further implementation seems at a below-10 percent chance.
Such practices to improve margins without losing customers will continue to be developed in other services.
Some of my retail services rules to live by include:
- Customer convenience always wins. Make it easier for the customer.
- Customer questions and complaints are great opportunities. They are far better than surveys with great insight into where to improve.
- Never complain about customers. Be curious and learn more. They can fire you whenever they want.
Leave A Comment