[Add-on Services] Add-Ons Answer Bottom Line Challenges

The lure of potential profits from add-on services leads many PCOs to explore services that blend well with their core pest control businesses and, at the same time, increase their bottom line. Creating new revenue streams can help with customer retention, reduce marketing expenses (because these services are sold to current customers, marketing expenses are minimal) and prevent technician turnover during slower seasons.

Identifying a service that fits well with pest control services while adding profit without excessive financial output can be a challenge. Some other considerations when selecting an add-on service include:

• Special tools or time required to provide the service
• Personnel requirements
• Required training
• Relationship to other core services
• Startup costs
• Profit potential
• Support from vendor or manufacturer

Industry consultant Dr. Austin Frishman says he sees add-on services as an opportunity for companies to begin “green” programs. “PCOs should look for opportunities for add-on services that correct environmental factors that attract insects initially. In other words, alter the environment to favor the homeowner, not the insects,” he said.

ADD-ON OPPORTUNITY CASE STUDY. Bill Cowley, Cowley’s Termite & Pest Control, Neptune City, N.J., is always on the lookout for add-on services and recently chose a new gutter protection system as the latest addition to his firm’s service offerings.

Known as the Leaf Defier system, this open cell polyurethane insert is specially shaped and cut to fit snugly into a gutter, preventing leaves and debris from collecting and plugging gutters. Leaves and debris slide off the surface and blow away, keeping gutters free of organic materials that attract carpenter ants and other pests. Treated with a biocide and fungicide that inhibits the growth of mold, mildew, fungus, algae and moss, the sponge-like material also has a built in UV stabilizer to prevent degradation from the sun. Because the Leaf Defier exterior-grade gutter protection insert system is specially shaped and cut to fit snugly into a gutter, the water flows through the product into the gutter valley and out the downspout, even through the heaviest storms.

“Once we saw the Leaf Defier system,” Cowley said, “we were sold. Our old system required two technicians on ladders and the technicians hated doing installations. After about 10 minutes of training, one guy can install it on the average house of 120 linear feet in about 90 minutes.” The profitability of Leaf Defier is attractive as is the ease of installation. Cowley said his profit is about 60 percent on Leaf Defier installations.

Frishman said he views the Leaf Defier system as an opportunity to discover other deficiencies in a home. “The technician is already on a ladder seeing areas the homeowner may not access — such as chimney caps, roof issues, etc. It also falls nicely into moisture management, which is important in preventing carpenter ants, mosquitoes and earwigs. This system certainly fits into the ‘green’ trend in the pest control industry,” he said.

Humphreys Pest Control, Stirling, N.J., has been installing Leaf Defier for about six months and, according to owner Rick Binner, the firm has had no negative feedback on the product or service. “Before beginning to offer this service to our customers, we tried it on our own building and liked the easy way it was installed and how it kept debris out of the gutters.” He said other hooded-type gutter protection requires regular adjusting, which isn’t the case with Leaf Defier. Humphreys also provides wood repair and air duct cleaning add-on services.

As a new seller of the Leaf Defier system, Jeff Holper, Holper’s Pest Control, St. Louis, said he believes there is great potential as a profit maker and mentions that there are no startup costs involved.

Carroll Brasure, Brasure’s Pest Control, Selbyville, Del., said he is pleased with the profit his firm makes on Leaf Defier installations. “It’s a no-brainer of an add-on,” he said.

SOURCES OF ADD-ON IDEAS. If your pest management firm is looking for an add-on service, ideas could be as near as your customers. Many companies derive ideas for add-on services by surveying their customers. Others are always looking for services that complement their pest control services and make a profit. Watch the classified ads in your local papers for ideas as well.

The author is president of Compelling Communications, St. Louis.

For More Information
The Leaf Defier system is manufactured by New Dimension Industries/Monzi. It is available through Residex, Univar or from Monzi. More information can be found at www.leafdefier.com or by calling 866/795-4770.