Not Taming the Termites

Here in Southwest Virginia, termites cause homeowners and business leaders a whole lot of grief. I knew that when I started New River Pest Control (NRPC) in 2013, but I wasn’t prepared at that time to offer termite services.

I had done a few termite treatments in my previous position as service manager with one of the big pest management companies. Our office was in Seattle, so we didn’t get many termite calls. Demand is much stronger in Virginia, I discovered when I transferred here in late 2011. In fact, the company had a full-time designated termite crew in addition to the general pest technician teams.

But as I established my business, I was discouraged by the high cost of termite equipment. I was opening NRPC on a shoestring budget, with just a few thousand dollars I had cashed out of my 401(k) after leaving my former employer. I had enough funds for licensing, insurance, initial material orders and a few hand pump sprayers, but not enough for a truck, trailer and termite rig. So I offered services in the two areas I was most comfortable with: general pest and rodent control.

I did offer termite inspections for real estate transactions, which created some confusion when I then had to decline the termite servicing requested by some homeowners and buyers. I referred those calls to a competitor, but watching that revenue stream leave crushed me. I knew that many of those accounts could have turned into recurring accounts — regular, loyal customers — if only I could have provided the termite service.

When I did the math, I realized that had I closed half of those calls, I could have nearly doubled my revenue in the second half of 2013. I started seriously considering making the investment in termite work.

With a slow start in 2014, I had plenty of time to discuss the pros and cons with my peers in the U.S. Pest Management Professionals Association (USPMPA) Facebook group I had created. Many were doubling or tripling their general pest revenue with termite work. Although some of these PMPs were in markets with heavier termite activity, I knew that if I were to boost my service offerings, the investment would pay for itself. One treatment would pay for the equipment and product. I decided I couldn’t afford not to start offering termite services.

As business picked up during the 2014 season, my profits grew. By September, I had money in the bank, and I bought some reliable used equipment. Then I just needed to sharpen my technical skills. Kenneth Joines of Southern Kentucky Pest Management was kind enough to mentor me, and other USPMPA members and representatives of my distributor, Residex, answered my questions, shared information and provided all the support I needed to approach the termite market with confidence and knowledge.

Within a week of securing the equipment, I landed my first termite job. It covered the cost of the termite rig, materials and gas. My termite business really took off in 2015, surpassing my total revenue figures of 2013. I leveraged this surge in business by reinvesting a piece of the profit from every termite job into equipment upgrades. Today, termite service accounts for 15 percent of my total revenue, and I’m anticipating a breakout year in 2016.

In hindsight, I realize that I was slow to get into termite work because I was thinking like a technician rather than an owner. As a technician, you enjoy the work every day, and as long as there’s work, you’re happy. But as an owner, you need to think bigger. Broader. Without limits. I was leaving far too much revenue and far too many potential relationships and future opportunities on the table. Worse: I was gift-wrapping those opportunities and handing them off to my competitors instead of capitalizing on them myself. Never again. I’m keeping my finger on the pulse of the market and, to the best of my ability, intend to fulfill its needs. That’s how you profit, grow and build a loyal clientele.

As told to Donna DeFranco.