Do you know the average pest control business, in business over 15 years, has an annual gross of $750,000 a year? Pest control is an eight billion dollar industry in the USA with five companies controlling 50% of the market. Ok, huge but that leaves four billion to be shared by the rest of us. If we simply divide $4 billion by 15,000 operators, that is about $266,000 for each of us, however, statistics also show most owner/operators struggle to gross $86,000 a year. There is a very good reason for this and that reason is 50% of the market is controlled by big pest control. You see, they have the market convinced that “big is good” and small operators can’t compete with their advertising, promotions and slick sales pitches. Quite simply, it makes it difficult for the small owner/operator to compete. While we applaud the small operator who generally provides an excellent service, statistics support having a strong regional presence opens the door to many prospects who would otherwise choose the “bigger company”.
Small operators can work a lifetime only to end up with nothing of real value; in other words, nothing to sell for retirement. While the bigger competitor may be willing to purchase your best routes for .30 on the dollar, that hardly represents a return on a lifetime of work and dedication. But what if your business was a franchise operation? Statistics prove a franchise operation has both real and perceived value over an independent operation. Prospective buyers know there are systems in place which control costs while promoting sales. Buyers know there are systems which are easily replicated for growth. Buyers know there is value in brand recognition and that their franchise will prosper from that brand recognition. Buyers know there is a market willing to purchase their investment when it is time to consider selling. Buyers know that as the franchise grows, so grows the value of their investment.
360PestControl is looking for pest management professionals who want to become part of a growing, dynamic team. Prospective franchisees include:
- Current pest professionals who are struggling to grow their business. Often, we find independent operators who are technically proficient yet lack the knowledge or resources to market their services. Regretfully, many have to give up their dream of owning a successful business and find employment with one of the big box pest companies or leave the industry they enjoy while discarding their experience and qualifications.
- Current home inspectors or inspection firms who wish to add pest control services. Pest control, WDO inspections, mosquito control and termite treatment are complimentary services to a home inspector who is already trained in assessing moisture issues and building defects. We find home inspectors quickly become proficient and develop into exemplary pest management professionals. Adding pest control services to your home inspection business is a natural growth opportunity.
- Lawn and landscape companies who are willing to dedicate the time to learn pest control services. While taking advantage of your plant/lawn knowledge, adding Lawn & Ornamental services and growing into full pest control services is almost automatic. Your customers already know you and trust you with their lawn – why not give them award winning 360 service?
- Handyman services compliment their service offerings with pest/termite treatment. You are skilled in a variety of repair methods in carpentry and water damage, you can recognize conducive conditions related to pest infestation and you are known to be professional and trustworthy. Take advantage of your customer base by developing a pest service business!
- Entrepreneurs who like the idea of a low risk, low capital investment opportunity with exceptional growth potential.
Let’s take a quick look at the pest control industry:
- Less than 17,000 individual pest service locations across the USA. That is one location for every 19,000 people in the whole country! Compare that to fast food at 232,000 locations or one location for every 1,392 people.
- The pest control industry is growing at a 10% growth rate, year over year.
- Gross profits average over 55% of revenue (sales less direct expenses)
- The average route technician generates over $100,000 in sales per year providing $55,000 to the owner.
- The average pest control company retains over 60% of their customers each year
- Low employee turnover among franchise owners – compare that to fast food or other ventures!
- Low capital requirements
- Significant growth potential
Let’s take a look at the most popular pest control franchise offers:
- Large national companies require an average $80,000 to $140,000 investment
- Regional companies require an average $40,000 to $60,000 investment
- Boutique companies offering one service such as “green pest control” or mosquito control require an average fee of $15,000 to $26,000 investment with some as high as $45,000. The kicker here, is you only have one service offering.
- All also require training fees, marketing/advertising fees and royalty fees.
Compare this to our standard franchise offering:
- Franchise fee as low as $9,750. Final price is based on population/geographic area. Conversion program is available to current industry professionals which may waive/reduce initial fees.
- Royalty fee of 6% of gross sales
- Advertising fee of 2.5%
- Low cost training