[Termite Control] A Smart Investment

Pre-treatments are a vital component of the pest control industry. Many pest management professionals regard pre-treats as a side service — a necessity, an obligation — so that one does not "disconnect" with the customer base. Many pest management professionals would choose to stay clear of conducting pre-treats if such a service were not required.

What complicates the issue is that many states require pre-treats, thus making the service a critical component in the industry. This is actually a good thing. Diving into the pre-treatment market can be beneficial for all sizes of operations. Described herein are valuable tips and objective opinions about the pre-treat market for both pest management professionals who are thinking about including this service, and those wanting to change their strategy.

EXPAND YOUR CUSTOMER BASE. If pursued correctly, significant growth of one’s customer base can be achieved via termite pre-treatments. This involves a process with two main components that are not mutually exclusive. The first component is the builder/contractor. Builders and contractors usually request service from suppliers who are trustworthy and efficient. It takes time to gain the trust of builders and contractors, but once that is achieved, often the builder/contractor becomes a consistent customer. Builders/contractors also are a good source of referrals for other builders/contractors.

The second component is referrals to homeowners. Many homeowners will take on projects without hiring a contractor if such a task is not so daunting. Such projects might include deck installations, resurfacing driveways, wood repair, and at times, house additions. Most termite agreements become void when such projects are initiated because of soil disturbance. This proves to be a perfect opportunity to offer small pre-treatments at competitive prices that enable the homeowner to maintain the warranty.

RECURRING REVENUE. Pre-treatments can lead to recurring revenue via termite warranty renewals. Any pre-treatment conducted is a link to a potential customer. Many builders will give the first year free to the homeowner. However, after that, it is up to the pest management professional to establish communication with the customer and activate the remaining warranty. The standard length for a termite warranty is five years, and for the most part this length of time is mandated by many state laws and is embraced by the industry as a whole. After the five-year warranty has expired, there is greater incentive to re-treat and sell a new warranty. This is where the pest management professional who conducted the pre-treatment has the advantage.

CROSS SELL. Cross sell! Cross sell! Cross sell! Once the relationship is established with the customer, the pest management professional has a significant opportunity to cross-sell pest control services. It is never too late to try to cross-sell pest control to a current termite customer. If a customer uses another company for pest control, many times he or she will "switch ships" if a good relationship has been established.

Furthermore, this is where selling "bundle packages" can come into play, whereby the termite warranty renewal is bundled with a pest control service. The pest management professional now has the room to lower the price of the termite warranty renewal if the customer decides to sign a pest control service agreement. In any case, you will have a customer who is under the umbrella of your service and who, if satisfied with the pest control service, will refer you to other friends, potentially adding to your customer base.

VARIETY OF OPTIONS. A variety of options exist regarding the methods one can use for pre-treatments. This allows flexibility for both the builder and the PCO. Options include liquid treatments, borate treatments and bait installations. What method of operation suits your operation? Liquid treatments are the most popular. However, they require more time and equipment. In states that don’t require pre-treatments, several trips are required for liquid pre-treats (in order to follow the label). In addition, one must usually have a large tanker rig to conduct treatments efficiently.

Borates, containing the element boron, are newer pre-treat products. Their use does not require a large tanker. The technician can carry the product in a mid-sized truck. Furthermore, fewer scheduling conflicts with other ground crews arise — thus an "in and out" approach is available. However, mixing is messy and there is greater chance for incorrect application due to the twists and turns of the house skeleton. This can result in untreated wood or concrete gaps around the inner and/or outer periphery of the structure, through which termites can penetrate.

Baiting is a process in which one installs a series of monitoring/baiting stations around the perimeter of the house. The advantage of using baits is the efficiency of the install. The down side is the lack of any "barrier" protection from the onset. Hence some PCOs also incorporate a liquid treatment around the house for extra protection.

OTHER RELATIONSHIPS. Get the chemical manufacturers involved. Once a PCO has a game plan and decides to use specific products, he should get involved with the manufacturers and start building relationships with their representatives. Once these relationships are established, the pest management professional has an extra friend on his side. Not only will manufacturers help in training but they will also venture into the field and give instruction when needed. In addition, many manufacturers have their own warranties supporting their product, in turn supporting any warranty that the pest management professional decides to sell to the homeowner.

Manufacturers also have marketing materials that can be used as selling tools. Remember, if the PCO makes a sale then the manufacturer sells as well. Make appointments with manufacturers’ representatives and have them visit your company and present a training seminar about the best way to sell their products. Not only will it provide you with a lot of information that can be passed to the customer, but it will help educate technicians and make the sales people better, which equals more business!

Vendor relationships are important as well. Vendors and manufacturers are there to serve you. Not taking advantage of such an opportunity is a lost opportunity. Vendors will give training seminars based on your specific needs. They also will help you to facilitate stronger manufacturer relationships.

The author was previously a regional technical director and is now a general manager for HomeTeam Pest Defense in Chesterfield, Mo. He can be reached at ripser@giemedia.com.