[Cover Story] Unsportsmanlike Conduct

The vast majority of pest management professionals are ethical business people, but the industry does have its share of unethical "professionals" who are involved in less-than-scrupulous practices. And even the most ethical of pest management professionals is faced, at times, with decisions on the right thing to do.

In a recent PCT survey, 68 percent of the respondents say they believe that most pest management professionals are indeed professional and conduct business in an ethical manner. So what breaches do the other third see as problematic and what ethical issues do professionals face on a daily basis?

The top five ethical issues of the pest management industry, according to recent research by PCT magazine, are:

1. Questionable Service: A pest management professional told the customer that he would be back to follow up, but there didn’t really seem to be any major problems and it’s really busy this week…

2. Problematic Pricing: A pest management professional would love to get this account, but he figures the only way he’ll be able to get it from his competitor is by pricing the job really low. Sure, maybe he’ll lose a bit on this job, but he can always make it up later. OR, the prospect’s house is about the same size as many others the pest management professional services, but it is definitely on the "high-rent" side of town. Maybe the PCO should go ahead and charge a bit extra, this customer has the money…

3. False Facts: The prospect has asked a PCO a question about the product; he’s not quite sure of the answer, but he’s used the pesticide for this type of problem lots of times and it always works. The pest management professional’s answer sounded good, and the customer will never know if it’s not quite right…

4. Termite Tribulations: The pest control company’s termite inspection didn’t come out quite the way the real estate agent wanted but she can bring the firm lots of work. Perhaps a couple changes to the report wouldn’t be so bad…

5. Unsportsmanlike Conduct: A prospect is deciding between one company and its major competitor. Maybe if the PCO tells the customer that he’s found unserviced bait stations at the competitor’s accounts…

When faced with such situations, what do you do? And what do you believe most pest management professionals do in similar circumstances? This article details the results of the survey, as well as comments from interviews with various industry professionals.

THE SURVEY. PCT’s ethics survey received 187 responses from pest management professionals. While 68 percent answered "Yes" to the question: "Do you think most pest management professionals are ethical business people?" the remaining respondents were split, with 18 percent responding "No" and 14 percent answering "Don’t know."

As those who have worked with statistics know, results can be interpreted many ways — and the results of this survey are no exception. On one hand, the results do not show a very positive perception of our industry when you consider:

• the question asked whether most of the professionals are ethical, and only two-thirds (68 percent) said "yes"

• respondents are all industry personnel, and yet 32 percent do not feel confident enough in our industry professionals to say that most are ethical.

• more than 81 percent of the respondents shared comments as to where the industry falls short in ethical business practices.

On the positive side, however, most respondents did feel that the majority of pest management professionals are indeed professional, and perform business in an ethical manner. Joe Lupini, president of Loyal Termite and Pest Control, Richmond, Va., says the pest management industry definitely has unethical providers — those that are "fly by night, out to get a buck, not give people service they pay for." But fortunately, he adds, these companies are not in the majority and therefore are not a big problem to the industry. "We do have a lot of companies giving reputable service," and the increased state regulations have helped to eliminate a lot of past problems, he said.

TOP FIVE ETHICS ISSUES. The pest management industry has an interesting view on ethics issues. Perhaps it is because PCOs long have faced industry-perception challenges, but when a pest management professional is questioned on ethics — whether through a survey or in one-on-one discussion — it seems to spark "big picture" rather than "personal issue" responses. For example, though one survey question was framed to discern the ethical issues that the PCO personally faced, asking, "What is the number one ethical dilemma you as a pest management professional face on a daily basis?" both this question and a second more industry-based question ("What is the most common breach of ethics you’ve observed among competitors in your marketplace?") elicited similar comments. PCOs described unethical practices in the industry that become personal because they force the ethical provider to deal with the resulting negative industry perception, dissatisfied customers, and even dissension among industry companies. The following are the "top 5" pest management industry ethics issues:

1) QUESTIONABLE SERVICE

Whether caused by over-promising, under-delivering, unnecessary work, unsafe practices or simply bad service due to either lack of training or deliberate indifference, poor service came up again and again as an ethical issue. Although today’s consumer is more knowledgeable about pests and pest management practices, there is a great deal of trust and empowerment placed on the pest management professional who, in most cases runs his route alone, and, as the following detail, have numerous ways of defrauding even knowledgeable customers, including:

• Unnecessary service. The top ethical breach noted was technicians "finding" infestations that don’t exist then treating for the phantom pest. Also described were incidents in which simple jobs are turned into monthly treatments when that is not needed; high-pressure sales tactics are used for unnecessary work; and free "inspections" are offered, then "hundreds or even thousands of dollars in services" recommended that are not needed.

• Inadequate service. Shortcut treatments, low levels of service performed after the contract is signed, incorrect treatments, insufficient monitoring of bait stations, and even "just using plain water and passing it off as pesticide."

• Unsafe service. Not following label directions, servicing without a license.

• Over-promised commitments. Not delivering the level of service promised; not returning for follow-up services; over-promising on results of chemicals to be used; and simply knowing in advance that their treatment will fail.

"It’s not unusual to have found out that somebody performed service that was not needed," says Rose Molina, president, AIM Pest Control, Denville, N.J. But what she sees as most troublesome are issues of safety, environmentalism and documentation of service — which links directly back to determining whether a service is needed.

Molina is also a registered nurse, and worked in the health-care industry for 22 years. As a health-care practitioner, she says, she learned valuable lessons in the importance of putting safety first and documenting it. "You don’t want to eliminate the pest and potentially put the customer and their environment in jeopardy," she says. But she says she doesn’t feel that pest management professionals always document service well enough. "Some technicians don’t feel it is important enough to do it," she says. But if a lawsuit were to present itself, they would certainly be happy that they had documentation of their work. "You always have to go in there thinking ‘if they call me in three months what would I still know?’" she says.

Some pest management professionals did note, however, that it isn’t always a matter of ethics, but that technicians are not always properly or adequately trained. As one explained, "More than a lack of ethics, I feel this industry needs a higher quality, i.e., educated individuals. I feel this profession should have a minimum of a high school diploma or equivalent. That is just basic. People are working with chemicals and the risks can be tremendous. However, I feel that at least a two-year college degree would enhance this industry’s overall performance. … Honestly, it could not hurt!"

Lupini also sees the pest management associations as being of great benefit in helping companies deal with ethical service dilemmas. "We’ve been trying for years and years to get people to join associations, then abide by the code of ethics," he says, adding those who are members of associations generally provide quality service. (See related story on page 51.)

2) PROBLEMATIC PRICING

Both low-balling and over-pricing cause problems in the industry. Lowball pricing can take on many guises from intentionally under-measuring or specifying less than adequate chemical in order to secure the job or increase profits to deliberately under-servicing an account to save on labor costs. Over-pricing generally stems from companies taking advantage of a customer’s situation, and perhaps using these accounts to make up for the low-priced, unprofitable jobs.

The issue most often described with pricing was companies offering services for such a low price that it couldn’t cover the chemical cost, let alone labor (i.e., termite pretreats). Often done just to get the job, the result is generally an unprofitable account for the company, low-quality service or insufficient chemical application. As one PCO explained, "I have known a few guys in my area that undercut other companies on price and claimed they were offering the same service when I know they were doing a large spot treat instead of a true full treat, and when I ask why they do that, they say their warranty will cover any re-infestations."

On the other hand, pricing can become unethical when it is vastly higher than its value, particularly in such cases where customers are charged more because of the area in which they live or elderly customers are taken advantage of.

Paul S. Reidenbach, manager, Paul’s Pest Control, Wildwood, N.J., says he sees an additional issue in "price gouging due to production." That is, many companies are changing technician payment from hourly payment to a production basis. This can instigate a feeling in the technician that he is working on "my time" rather than "company time," and cause him to feel short-changed and uncompensated when he has to deal with callbacks or follow-up service, which can, in turn, cause him to short-change the client on such calls. Or, the technician may overprice services in order to make up for other unproductive services.

While some technicians may end up doing a better job on the original service to avoid additional follow-ups, problems arise when a different technician has to handle the follow-up calls, he adds. Reidenback says he believes this issue can be prevented with forethought and planning. "We all know what needs to be justified to make our routes productive," he says. For example, if a technician is given a salary or hourly base salary (to cover unproductive calls), plus commission (to provide incentive), company and employee objectives and satisfaction can be achieved.

3) FALSE FACTS

Misinformation provided to customers is a third ethical issue, particularly when it is a result of outright dishonesty rather than a lack of knowledge or training. A number of PCOs were not hesitant to describe the issue as technicians literally lying to customers, while others tried to be more diplomatic and describe the issue as "misleading the customer with false information," "reporting fictitious evidence," "withholding the truth," "misrepresentation" and "telling non-truths." These untruths can be related to treatment, chemicals, pests, inspections, safety and even competitors.

Molina says she sees customer education as a critical part of service, and one which is more important and expected today than ever. "Today our customers are a lot savvier," she says, and they have higher expectations. Before they go out to service, technicians should be sure they have a complete understanding of the product and treatment — and can explain it to the customer. Molina says that she tries to educate every customer with whom she deals, and it is amazing, she adds, how many come back years later stating how helpful she was to them.

4) TERMITE TRIBULATIONS

Termite work was the one specific area of service cited as consistently problematic, from performance of unneeded service or "planting" of termites to rigged inspections and real estate reports.

The most often cited issue concerned treatments as part of real estate transactions. Real estate agents, mortgage companies, homeowners and home buyers all have their own set of requirements, expectations, needs and wants, and it can be difficult for the pest management professional who is stuck in the middle. According to the pest management professionals that PCT surveyed, service providers are most likely to err on the side of treatment rather than non-treatment, sometimes to assuage the real estate agent, sometimes with questionable motives, and sometimes with "fraudulent or willfully misleading mortgage inspection reporting."

And even the treatments can be problematic, say other respondents, with insufficient product being used; unsafe applications being made; "spot treatment but we are going to guarantee the whole house" scenarios; and letting real estate agents dictate the type of treatment to be provided for a real estate transaction, but not allowing enough money to properly treat.

Molina, however, notes special circumstances where treatments may be performed that other PCOs may feel to be unnecessary. "There are times that we do do termite treatments even when we didn’t find evidence of an existing infestation," Molina says. If there was old evidence of termites or even a treatment, she says, mortgage companies often require that a treatment be performed. Thus, the professional is ethically and legally allowed — and even bound — to perform the treatment even if he or she didn’t see termites at the time of inspection.

5) UNSPORTSMANLIKE CONDUCT Competitive badmouthing, misrepresentation and general disrespect among industry professionals not only creates ill feeling between businesses but generates negative perceptions of the pest management industry as a whole. Backstabbing, making up stories, putting other companies down and literally lying were all listed as issues that professionals have had to deal with from less-than-ethical providers.

PCOs do need to be careful about jumping to conclusions about competitors badmouthing them, however, Molina says. "I’ll tell you who is badmouthing companies — clients. If your company is doing a lousy job, your client will mention it."

Mark Wills, owner/operator, Pesco Termite and Pest, Middletown, Ohio, sees the relationship between PCOs and some state regulatory officials as a further issue in industry relations. "You’ve got ‘The Man’ and you’ve got the men," he says. Although he doesn’t have issues himself, Wills says, he often hears complaints, primarily about the way the regulators enforce the regulations and foster an adversarial atmosphere. "You catch more flies with honey. I hear from some of my competitors that they are more vinegar than honey."

The problem, he explains, is that in this sort of atmosphere, some operators will tend to do things they otherwise might not just to see what they can get away with, and cheat in ways that they know they won’t get caught. The solution? "It would almost have to come from regulators in extending an olive branch," he says. Initiatives such as standardized forms and guidance documents would be very helpful, as these would foster compliance and enable PCOs to understand exactly what is required from the start.

In other areas, the regulatory officials are seen as aiding in the ethical efforts. Although the states don’t always have enough inspectors to prevent unethical service across the board, "I think the state regulators have eliminated a lot of it," Lupini says. In Virginia, for example, there are concentrated efforts in the area of termite pre-treatments and label compliance, he says. "We’re doing everything we can to stop those people from putting down 5 gallons [of product] where 100 gallons are needed."

RESOLUTION. While unethical companies and ethics dilemmas will always be with the pest control industry, there was general consensus that ethics questions can be fairly simply answered and the solution can be quite basic.

"Be nice and give your customers good service," Reidenbach says. "If you want to be successful, just be nice."

"Treat people like you want to be treated and give them service they’re paying for," Lupini says.

And if you choose the ethical route for no other reason, take a lesson from the NBC sitcom "My Name is Earl," and consider karma when you are faced with an ethical dilemma. "It’s karma." Molina says. "It’s going to come back to you."

The author is a frequent contributor to PCT magazine. She can be reached at llupo@giemedia.com.

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Is a Code of Ethics a Good Idea

The North Carolina Pest Control Association has a code of ethics that exemplifies that of many state associations, holding its members to high standards of commitment to:

• Maintain a high level of moral responsibility, character and business integrity; to practice fairness, frankness and honesty in all advertising and in all transactions with the general public.

• Hold our industry in high esteem and strive to enhance its prestige.

• Keep the needs of our client always uppermost.

• Know the accurate costs of all services performed and responsibilities assumed in the prevention, control, elimination or management of pests and demonstrate a determination to recoup those costs and to profit from the effort.

• Render pest control services safely and efficiently in keeping with good practices and to observe them in both letter and spirit.

• Perfect our skills and business practices. To cooperate with others in the interchange of knowledge and ideas for mutual benefit.

• Respect the reputation and practice of other pest control operators, but to expose to the association, without hesitation, illegal or unethical conduct of firms.

Although the National Pest Management Association does not have a written code of ethics, says Cindy Mannes, vice president of public affairs, its QualityPro program was developed, in part, to deal with such issues in the industry. NPMA realized that the industry needed to raise the bar for quality, and that consumers were unsure how to choose a pest management professional. After discussion with EPA, state pesticide officials, national media and consumer focus groups, the association developed QualityPro. As explained in its literature, "QualityPro is an industry program designed to increase professionalism of the industry through self-regulation; stimulate consumer demand through increased confidence and a higher public perception of industry professionalism; create common sense, quality industry standards; and provide marketing opportunities to participating companies by recognizing commitment to excellence and higher performance standards."

Available to any NPMA member in good standing who has been in business at least two years, NPMA’s QualityPro is built around four key principles: business operations, consumer relations, environmental stewardship, and technician training.

For additional information visit www.npmaqualitypro.com.