[Cover Story] Thanks, But No Thanks

Let’s assume that you are in the pest control business to make a profit. We’ll also stipulate that you want to provide an essential service, done professionally and priced reasonably. You also wish to provide a good place to work for your employees. We’ll also assume that you are not in business to fulfill some charitable purpose nor are you just plain greedy or dumb.

Now, before we get too far down the road I know that there will be those of you that will read this month’s cover stories and say, "A professional should never walk away from an account," or something similar. You may believe that we should be able to solve any problem under any circumstances. That sounds great. However, it’s not very realistic. Sometimes it is not the pest that is the problem. It’s the circumstances that make the account untenable.

Granted, walking away from an account is not somethi ng you will do every day. However, in 2004 there are plenty of reasons you should give some serious thought to every account you have or undertake (for example, liability, cost and difficulty in obtaining insurance, reputation, profit and availability of skilled labor).

TOP 10. The following is a list of signs that you may want to look out for and if you spot them, you should give some strong consideration to walking away from the account.

1) Is the liability greater than the gain? By servicingthe account do you expose your employees to unacceptable risks or hazards? This is particularly true where the customer cannot or will not compensate you fairly for the work and risk you are undertaking.

2) Is the job beyond your experience or capacity? If you are a small operator, relatively new to the industry and have only one or two employees, you may not want to jump into a highly technical and manpower intensive job until you have had a little more experience and have added a few more people.

3) Is the account too far away from your primary service area? If the technician has to drive 25 or 30 miles to service a $49 account, it’s too far away. It will not be profitable for you or your service technician. If your technicians are on commission, they are wasting a lot of valuable time and gasoline driving to and from that account.

4) This one I shouldn’t even have to mention. If  you are not making money on the account, get rid  of it. Of course, the alternative is to raise the price. In either case, I don’t believe there is such a thing as a "prestige account" that justifies your losing money. If it is so prestigious then the customer ought to be able to pay what the service is worth.

5) If someone has not paid you for services rendered, quit performing additional service. I’m not  talking about an account that’s 30 days past due. I’m talking about accounts that are 6 to 12 months past due and show no signs of ever paying the invoice. This is extremely important with termite renewal customers. Terminate them in exactly the manner your warranty states if they do not pay their annual renewal fees. Do not continue to offer additional inspections or treatments.

6) If you have an account that will simply not  permit you to do the job the way you know it should be done, then perhaps they need a different service provider. By accepting conditions imposed upon you by the customer that are contrary to good pest management practices, you may appease the customer momentarily, but I can assure you that you also have increased your liability. An example of this problem might be a customer that will not allow you to service a particular part of their facility in spite of the fact that this area continues to be the source of problems. Nursing facilities, in areas were red imported fire ants are common, that won’t pay for exterior perimeter ant control is one example that comes to mind.

7) There are a whole host of issues regarding  subterranean termites that you need to watch out for. For example, does the building have extensive wood-to-ground contact, excessive above ground moisture and a customer that shows no willingness to fix these problems? This is not the type of account you want to issue a warranty on. Another example might be a customer that refuses to let you do a complete subterranean termite treatment because they don’t want you inside the home or defacing certain surfaces. Yes, I know this may change in the future. For now though consider donating this customer to your competition.

8) Watch out for delusory or illusory parasitosis cases. Both conditions are typically beyond the realm of the structural pest control specialist. They are medical and/or psychological problems. Let those folks deal with them.

9) Avoid termite control accounts were the building has either EIFS cladding or rigid foam insulation below grade and the customer won’t have it removed. These are spooky accounts. Don’t go near them.

10) You may want to avoid a customer that is suing another pest control company. You have to ask yourself, "Am I next?" The more you know about the circumstances the better able you will be to make the call in a situation like this. If the customer asks you to participate, write a report or testify in prosecuting his or her case against the other pest control company, you should walk away from the account. This is not good business.

ADDITIONAL THOUGHTS. Obviously, there are other examples of pest control business you might want to avoid. You, of course, are in the best position to determine which business to take and which to pass up. It is not important that you have a hard and fast rule about which types of business to accept and which types to reject. There will always be some forms of business you just don’t want. Some pest management companies don’t perform bird control, others don’t do wildlife removal, and still others don’t do any termite control. This is perfectly acceptable. Being aware of your company’s limitations and the potential for liability is the first step in avoiding business entanglements, which you may come to regret.

However, liability alone is not the only reason for avoiding or withdrawing from some accounts. Perhaps equally important is the impact that some types of business can have on your company. Labor intensive work or work that requires high volume in order to make a profit may not be right for you or your employees. Pay attention to your gut response. If it tells you there’s something not right about this account, it’s probably one you should pass up. Life is too short and you don’t need the aggravation. There is plenty of good profitable business out there that will let you get a good night’s sleep.

The author is a board certified entomologist and president of Entomology Associates Inc., Houston, Texas. He can be reached at jtucker@giemedia.com.