[Cover Story] PCT Top 100

How To Be a Top 100 Company

by: Lisa Lupo

What does it take to make it onto PCT’s Top 100 list? For PCOs wanting to grow their businesses to be among the pest management industry’s 100 largest firms, PCT asked leaders of some of those companies currently on this list to share their success secrets.

In January, Rentokil Initial acquired Reading, Pa.-based J.C. Ehrlich, a company that topped the $100 million mark in 2004 and has consistently ranked in the PCT Top Five. How? "There are thousands of things you need to do, year in and year out," said longtime J.C. Ehrlich President Victor Hammel, who now serves as Rentokil’s CEO of North American Pest Control Operations. "If there were one button to push, we’d all be pushing the button."

To narrow the "thousands of things" down a bit, PCT spoke with a mix of companies from the 2005 list to determine the top five things that Top 100 companies do to get to, yes, the top. Interesting, but perhaps not surprising, a large portion of the advice focused directly on people and the relationships among and between workers and customers.

1. Employee and Customer Relationships. "To retain business, you must retain co-workers," Hammel said. "The first step in growth is to keep the business." And to keep customers happy, he said, you have to keep the workers happy. Steve Goff, president of Sunstate Pest Management in Rockledge, Fla., agreed. With 29 employees, Goff said, "We are a ‘mom and pop,’ and we still run it that way." The company believes in the importance of family and the flexibility of allowing workers to take time off if a child is sick or they wish to attend a school program. It is also important to continually communicate with your employees and provide training, opportunity and incentives. The dedication of its "across-the-board team players" is critical to the success of Metro Pest Control in Glendale, N.Y., said President Greg Zarek, and providing incentives for performance, such as Metro’s across-the-board profit sharing, serves to further enhance the dedication to drive for success.

Atlanta-based Arrow Exterminators recently introduced a new incentive program for its technicians that provides them the opportunity to make more money, win trips and gain recognition through induction into its Pinnacle Club. Arrow also increased incentives for its sales team. "It has really caught on like wildfire," said Chief Operating Officer Emily Thomas. "The increases have been a huge, huge part of our growth." But Thomas believes that the monetary incentives are only a part of the motivation for employees. "I think for a lot of people, it’s more the recognition that comes with it," she said.

Ehrlich’s success, Hammel said, "is based on the focus we have had on the first line of the second paragraph of our Vision Statement: ‘Above all else, we value long-lasting relationships with customers and co-workers.’" Goff takes the thought a step further, stating, "Treat everyone with the utmost respect, the same respect you would expect. Treat every customer like they are your only customer." It is the interaction of the technician with the customer that sets the value of the service, said Mark O’Hara, president of Anderson Pest Control, Elmhurst, Ill. "If the customers don’t feel that the technician cares about them or their property, you’ve probably got a cancellation coming pretty quickly."

2. Customer Service. The customer relationship is also a direct result of the service provided by the company and its technicians. Return calls; show up on time — or call if you’re delayed; provide quality service, Zarek said. "It’s the basics. That’s all you need for success." The basics also include providing the right service. Dennis Jenkins, president of ABC Pest and Lawn Services of Dallas/Fort Worth, said his company’s growth in recent years has come from "making the right service offerings for the customer, technician and company at all times." When the termite market took a hit, the company began offering a new service package to its customers (as detailed in #3. Innovation and Vision). As O’Hara adds, "After you get done calculating all the numbers, you have to remember that you’re providing a service."

3. Innovation and Vision. Many companies grow their businesses through marketing and selling add-on services. Sunstate, ABC and Arrow all have programs based on this strategy. Sunstate contacts termite-renewal program customers about its pest control and lawn services. But this is not just a telemarketing effort; rather, Goff said, "We go out and try to visit each and every homeowner." ABC has a similar program through which it has worked to convert one-time termite customers into regular pest control monthly or quarterly customers. Their program, based on a termite/pest control package, works for both ABC and the customer because, Jenkins said, ABC gains long-term customers, and the customer pays a lot less up front, stretching payment for services over a three-year period. "The offering was solid, and this was recognized by the customer."

Arrow has developed a comprehensive real estate program in which it works with agents and new construction developers. Coupled with phone calls made to home-owners by representatives in Arrow’s new Customer Care Specialist position, the program is unearthing prospects across the residential market. Arrow is also among a number of companies that attribute their growth to acquisitions as well strategic expansion. Although headquartered in Atlanta, Ga., Arrow has made acquisitions in Arizona, Texas and Nevada. "There was no [geographic] rhyme or reason for these acquisitions, except that the folks wanted to sell and it was a good fit," Thomas said. The company is also focusing on new markets in North Carolina, South Carolina, the Northeast and the Midwest. "Our vision is to become the largest privately held company in the industry."

"Surround yourself with really good people that are trustworthy and buy in to your mission," advises Jenkins. "Once you’ve done that, you share the burden of growth and when you share the burden, it’s easier to grow."

4. Constant Improvement. "Foster change within the firm. Get people used to evolution and change," said O’Hara, who adds that he never looks at Anderson as being extremely successful. "I try not to think ‘we’ve got this down,’" he said. "There’s always a myriad of things to work on."

O’Hara benchmarks his company against those he sees as the best – J.C. Ehrlich, Springer Pest Solutions, Rottler Pest & Lawn Solutions and Orkin Pest Control. There are a lot of great plans, a lot of great models, he said, "but a lot of it is in the execution." And this execution should always include specific measurements. "Quantify everything," he said, and be sure that your assessments are realistic.

Rather than calculating retention rates, look at cancellations and realize that what may be "only" a $100 loss this month would be $1,200 for the year, O’Hara said. These calculations should also be applied on an individual basis. "Measure each and every account as far as profitability," he said. From the smallest pizzeria to the largest college, calculate dollars per hour of each technician based on skip rates, productivity, windshield time, even time spent on quality control checks.

"Stay aware of changes; try to adapt to them and be ahead of them," adds Rick Swope, vice president of Antimite Termite & Pest Control. The pest control industry has changed a great deal in the 30 years the Rancho Cucamonga, Calif., company has been in business. So too has the company itself, through the acquisition of other companies and the growth of its existing business. But through it all, Antimite has focused on keeping key employees and maintaining its family atmosphere – despite the fact that it now has more than 450 employees. "It gets tougher," Swope said, "but we still treat it that way."

5. Fun. The top companies interviewed all mentioned the word "fun" at least once, with Jenkins providing the best description of not only fun, but day-to-day enjoyment of the job. "I believe firmly that you have to love what you are doing, love going to work. No matter what is going on, you should be happy to be there.

"Never be the person in the glass office that no one can talk to," Jenkins advises. "Be the person they work with as opposed to the company they work for."

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Aiming for the Top 100

If desire and determination are the keys to success, you will see Bug Doctor Termite and Pest Control on PCT’s Top 100 List … eventually. Since the list was started in 2002, President Stuart Aust has set a goal to be on the list. "I just perceive being in the Top 100 as a prestigious type of event. I’m really looking forward to it." And his perseverance toward this goal has inspired the entire company. "It has become an office goal to make the list," Aust said. "We’re using it as motivation for our managers and staff."

With 2005 revenues of $3.37 million, the Paramus, N.J., company did not quite make this year’s list. But with an annual growth rate of 15% – resulting primarily from increased services, offices and salespeople; tightened routing; strategic marketing; and tactical acquisitions – it is well on its way.

Since opening its doors 15 years ago, Bug Doctor has added the divisions Bird Doctor in 1996, Mosquito Doctor in 2001, and holds the rights to the name Grass Doctor, Aust said. The company is planning to open three new offices this year, and recently it added a salesperson and conducted a thorough rerouting program to completely free up one technician. During past busy seasons, Bug Doctor sometimes had to turn away business, Aust said, but now they are instead in a position to grow.

Bug Doctor tries to take advantage of every marketing opportunity to grow its existing base. "It is so much easier to sell an add-on service," Aust said. "By promoting the add-on, it leads to business." The company does this through its logoed trucks (including separate Bird Doctor trucks), promotional messages on its call waiting, mail stuffers, flyers, and newsletters, all of which lead to consumers calling in to Bug Doctor asking for quotes.

The company is also growing through acquisitions. "We’ve actually purchased three pest control companies, two of which also have been doing bird control; and two of the three owner/operators have joined our staff and have just been exemplary employees," Aust said.

Each year Aust compares his own statistics and growth to PCT’s Top 100. At his home office he keeps a list on his wall of his business goals. "Being in PCT’s Top 100 is on the list. I’m looking forward to one day being there!"

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Lloyd Celebrates 75th

With 75 years of service to Southern California, Lloyd Pest Control (#29 on PCT’s Top 100) doesn’t spend its time reflecting on what it has done, but looks forward to where it is going in the future. It is, in fact, the company’s anniversary theme, emblazoned on T-shirts gifted to every employee at its 75th anniversary kick-off celebration earlier this year: "Some people would call 75 years a great accomplishment. We call it a good start."

This "good start" began when Southern California’s construction boom of the early 1930s was sending rats scurrying into warehouses, office buildings and stores. James "Al" Lloyd took advantage of this market opportunity by offering a guarantee: "If I don’t get the rats out, you don’t have to pay." His commitment to getting rid of his customers’ pests, and his accuracy with a bird-shot-loaded .22, got the company started. The rest, as they say, is history. Lloyd Pest Control has never looked back, serving its customers with honesty and integrity for more than seven decades.

The secrets to the company’s success, said President James "Jamie" Ogle are its "care and concern for the people who work here." Care and concern, which he adds, "is given back ten-fold in their commitment to our company and our customers."

Lloyd is celebrating its 75th anniversary throughout the year with a mix of company and civic events, including Community Days, sponsorship of the San Diego Schools Inventors’ Showcase, and a company celebration in October. "My father and grandfather worked hard to maintain a family atmosphere and to provide an ethical, trustworthy business, both for the people and the community," Ogle said. "I’ve done my best to continue that and to keep that legacy intact."

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Modern Marvels

People, integrity, passion, innovation, quality. Modern Pest Control’s five core values are at the heart of its business and are the key reasons for their growth. "We really take them to heart and our team members take them to heart," said Director of Operations Scott Stevenson.

The two greatest pieces of advice Stevenson has for companies seeking to grow: First – "Get organized. Have everyone pointed in the same direction" through the company vision and core values. Second – "Have fun!"

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Topping $1 Billion

It can be quite a feat for a service company to top $1 billion in sales. Terminix reached the milestone in 2005. Terminix’s parent company, ServiceMaster, recorded $3.71 billion in sales in 2005. ServiceMaster also offers lawn and landscape maintenance services; home warranty and inspection; and plumbing, drain cleaning, heating and ventilation. The following chart lists other non-financial, non-technical service companies to achieve or exceed the mark.