[Cover Story] Custom-Tailored Termite Control

Reflect back to the early 1990s and you’ll recall an era when less effective termite control products, combined with increasing numbers of lawsuits, created a climate in which veteran pest management professionals were abandoning termite work left and right and newer PCOs were discouraged from getting involved in this line of work. They were the post-chlordane days and PCOs simply were not confident that the available products could provide the control they needed.

Fast forward to today and you’ll observe an industry filled with PCOs so confident in the available termite control products that they are offering a multitude of services and are developing creative ways to offer these services. In fact, according to market researcher Gary Curl, Specialty Products Consultants, Mendham, N.J., about 77 percent of those surveyed provided termite control services in 2003, compared to 2000 when 71 percent of PCOs said they were involved in this line of work.

"To a certain extent, this increase in the percentage of companies offering termite control services can be attributed to the high level of satisfaction with the termite control products available today," Curl says.

Adds George Rambo, president of George Rambo Consulting Services, Central, S.C., "PCOs are now starting to write damage warranties, extended damage warranties and extended warranty programs and we haven’t seen that since when we had chlordane."

What’s changed? In response to the removal of chlordane, industry researchers, manufacturers and others worked diligently to provide the pest control industry with new and better termite control options. The result was the introduction of bait systems, more effective liquid termiticides, and other innovative termite control products that the industry has embraced.

In its "Analysis of the U.S. Structural Pest Control Industry — 2003 Season," Specialty Products Consultants reported that almost half (45.9 percent) of all respondents said they were "completely satisfied" with the control they achieved with the termite control product they have been using.

As Dr. Michael Potter, professor and urban extension entomologist with the University of Kentucky, Lexington, Ky., noted during his presentation at the PCT Termite Management Summit in November 2003, "The bottom line is when the day is done there are more good ways to kill a termite than we ever had before. We have to decide which approach is best for us and our customer."

FINDING THE BEST FIT. Now that PCOs have seen first-hand the capabilities of this new generation of termite products, their focus has shifted to evaluating which products are the "best fit" for their companies and how to most effectively market their termite services to customers. This new-found attitude towards today’s termite products is largely responsible for a new trend in termite service offerings — customization.

Hoffman’s Exterminating, Mantua, N.J., for example, offers the following options: A full conventional soil and sub-slab treatment; a partial treatment to those areas suspected to have infestation or conducive to infestation (normally the house was previously treated); a partial treatment in conjunction with a baiting and monitoring program; a stand-alone baiting and monitoring program; and a stand-alone baiting and monitoring program with a borate treatment.

In addition to these options, President William Hoffman says his company’s intent is to design a program (using all of the current tools in the industry) to meet the needs of his clients while ensuring that they receive a comprehensive and thorough treatment. Because of the variables involved in termite work, pricing differs, "but we figure time and material (which includes all the services that we propose for the entire year)," he says. "The less we treat initially, the higher the renewal, sometimes as high as two to three times our average renewal of $125 per year."

ABC Pest & Lawn Services, Austin, Texas, has developed a pair of customized plans: a term-damage treatment option and a proactive treatment option.

With the term-damage plan, a customer chooses the term of the agreement (one, three or five years). A complete treatment, involving treatments to the entire perimeter and all plumbing penetrations on the inside of the slab, is performed. ABC covers damages under all three agreement options. Also included is a monitoring program in which monitoring stations are placed around the perimeter of the house and inspected every six months.

So, a five-year agreement might be the route to go if damage is found near a bath trap or in other places and the customer is concerned about damage, says Bobby Jenkins, president of ABC Pest & Lawn Services.

The other program is what ABC calls the proactive termite treatment, which Jenkins says might be appropriate for a homeowner looking to take a preventive measure or a homeowner with a simple infestation, such as a termite tube on the outside of the home but no activity indoors. With this option, ABC will treat the conducive conditions and thoroughly inspect the structure, including all plumbing access points. In addition, regular termite inspections and monitoring will be added to the customer’s pest control plan, meaning ABC will come out and inspect the structure on a quarterly basis.

"These programs might not have even been an option 10 years ago with previous types of chemistry," Jenkins says. "Each year that goes by I get more confidence in the results that we are able to deliver.

"We don’t know what will happen two, three, five years from now in terms of these products breaking down, but I’m not concerned because when that happens we will have some ‘knowns.’ We will know that for ‘X’ period of time I can stop termites. But right now our confidence is high."

A LOADED ARSENAL. With this trend of new companies entering (or reentering) the termite market segment, more emphasis is being placed on carving out a niche. Many PCOs say being able to offer multiple termite options fits this business model.

Arrow Exterminators, Atlanta, Ga., for example, offers conventional liquid treatments as well as baiting. And a service that is growing in popularity has been the company’s borate pre-construction treatments, which Arrow added four years ago.

All three options are covered in the company’s marketing brochure, which is produced in-house. Rick Bell, vice president of technical services, Arrow Exterminators, says having all of these options available gives Arrow’s salespeople important flexibility. For example, convenience might be a consideration. A customer might call with an interest in utilizing a baiting system, but upon learning of the recurring renewal expenses involved with this treatment system, that customer might decide to explore other options.

Bell says his salespeople look for these and other "triggers." For example, should a customer mention they have a pesticide allergy then the salesperson might suggest baiting.

"Our salespeople liken it to a golf shot," Bell says. "There is more than one way to play a particular shot. Let us come out and inspect your house and give you our best recommendations based on your particular situation."

Clegg’s Termite & Pest Control, Durham, N.C., also offers a variety of termite control options, including both repellent and non-repellent liquid treatments.

"Back when non-repellents came out one of our managers suggested that we offer both, sort of like offering Cadillacs and Chevrolets," said Phil Clegg. "It was successful at one branch, so we decided to offer it company-wide."

Clegg’s salespeople will explain the pros and cons of both types of treatments, including pricing differences, and then let the customer decide. Factors include termite activity vs. termite prevention, environmental concerns and structural considerations. For example, a customer selling a house who wants to ensure there are no termites on their property would not be interested in a preventive treatment.

Bruno Milanese, president of Bay Pest Control, Biloxi, Miss., also likes the flexibility of offering a variety of services to his diverse clientele.

"Our service area is very rounded in that we have a little of everything, including certain neighborhoods that are more prone to higher-end service," he said. "Then on the real estate side, sellers will want to spend the absolutely least amount possible."

Team Too Termite and Pest Control, located in environmentally conscious Corona, Calif., has found a niche offering alternative services, so the ability to offer multiple treatments is crucial. Team Too offers fumigation, localized treatments for drywood and subterranean termites, and whole-house perimeter treatments for subterranean termites using a liquid termiticide.

A common theme Team Too uses in its marketing materials urges customers to "Call us for the inspection and let us determine what is right for your house once we get there." Team Too limits its inspections to a maximum of three per day per person in order for each technician to spend at least 2½ hours at each home.

With the advent of the Internet combined with the available information about present-day termiticides, this 2½-hour inspection policy, which was instituted in 1996, has become more important than ever, says Brian Houtchens, vice president of Team Too.

"The information is available to customers and it can be influential," Houtchens said. "With the larger timeframe for the inspections we can take the time to educate customers. Sometimes we’ll encounter situations where we’ll have to explain that ‘Yes, this technology is available, but it might not be the best option in your situation.’"

Among Team Too’s more popular service offerings are its alternatives to fumigation for drywood termites, such as heat treatments.

"A lot of people in California are concerned about chemical exposure," Houtchens says. "Even though the products we use are extremely safe, we want to make sure that they don’t have to use a product if they don’t want to."

For commercial accounts, such as apartment complexes, these alternatives to fumigation are popular because the tenants don’t have to be displaced.

CREATIVE PACKAGING. As pest management professionals continue reshaping their business models for termite control, many have realized the value of monitoring/baiting systems. Some PCOs have found success offering termite baiting as a stand-alone treatment, while others have used baiting/monitoring systems in combination with other forms of treatment.

For example, a growing trend among PCOs is to offer termite monitoring services as a way to introduce termite control service to existing customers.

Terry Clark, vice president of Clark Pest Control, Lodi, Calif., says his company has been able to add on monitoring services to many existing general pest control customers using its patented proactive Term-Alert program. Customers who don’t have termites qualify for a low-cost protection program and every liquid treatment is sold like a pest service, with the initial treatment and regular follow-up service.

A Clark technician strategically places Term-Alert Interceptors (monitoring stations that also are used for pre-baiting and biological control) throughout the property, which are checked quarterly by specially licensed technicians — not as a part of that customer’s regular pest control program. If any new termite activity is discovered, the technician will provide immediate treatment at no additional charge.

Clark’s treatment methods include the "usual" — sub-slab injection; rodding and trenching; microwave treatments; fumigation; foam treatments; pressure injection; mechanical alterations; Clark’s Exclusive Term-Alert Interceptor; borate treatment; and biological control.

Mike Rottler, president of Rottler Pest and Lawn Solutions, St. Louis, Mo., uses Clark’s Term-Alert devices, although slightly differently. Customers can add the stations as part of a premium level service. Once termite activity is discovered, Rottler sales representatives will review the account and offer various treatment options, including a traditional baiting program and liquid applications with a non-repellent termiticide. Rounding out the company’s termite control services are foam applications and termite damage repair.

"It’s been a great way for us to bundle the services together," Rottler says. "We are looking for ways to separate us from our competitors."

George Rambo says the biggest barrier preventing more PCOs from offering termite monitoring services, using any number of available bating systems, is the front-end investment. Specifically, PCOs will either have to hire additional technicians or restructure routes, Rambo says. But Rambo says the payoff can make this investment worthwhile.

"I’ve advised my clients to do it or start looking into it," he says. "When you look at the potential you have for offering more services and, if you work it right, more communication with the customer, why not?"

And that communication increasingly is with builders, who are being schooled by manufacturers and PCOs alike in the benefits of various treatment options, including pre-construction termite "blocker" technology, borates and other innovative products — yet another termite market trend.

FORWARD-THINKING. The present-day termite market is filled with pest control operators looking to grow their termite market segment. These progressive PCOs are using creative service offerings and market strategies. And while their approaches may differ, a common thread among these pest control operators is a willingness to chart new courses for growth largely because they are more confident using the termite products currently on the market. It’s a far cry from the not-too-distant past.

The author is Internet editor of PCT Online (www.pctonline.com) and can be contacted via e-mail at bharbison@giemedia.com.