A Decent Proposal

Last year wasn’t bad for termite control. “I’d say it was a slightly above average season. It certainly wasn’t the best that I’ve ever seen, but it definitely was not the worst for us down here on the Mississippi Gulf Coast,” said Kolby Krohn, general manager, Redd Pest Solutions, Gulfport, Miss.

Other pest management professionals (PMPs) agreed. According to the 2024 PCT State of the Termite Control Market survey, sponsored by BASF, 44 percent said the percentage of revenue generated by termite control services at their company locations increased somewhat in the past three years, while 29 percent said it remained the same.

At Insight Pest Management, Newbury Park, Calif., termite revenue stayed flat by design. “I’m in the process of trying to switch to a little bit more pest control,” explained CEO Israel Alvarez. Termite control currently generates about 40 percent of revenue at the company. Alvarez’s goal is to get that down to 25 percent to reduce liability exposure and boost recurring revenue. In his market, drywood termite control tends to be a one-time service.

Termite revenue remained “stable” at McMahon Exterminating, Evansville, Ind., mainly because customers weren’t home to notice termite activity like they were during the pandemic, and they also were feeling economic pressures, said President Charlie McMahon.

In fact, one in five PMPs said the number one reason that termite revenue remained the same or decreased at their company was because customers didn’t have the money to pay for termite- related services.

McMahon Exterminating got its start 52 years ago by offering termite control. Today, this work accounts for about 20 percent of company revenue. “Although termite is a smaller piece of what we do today, it is still very important to us,” said McMahon.

Thirty-eight percent of PMPs said termite control today was equally significant to their company location’s bottom line compared to five years ago. Last year, termite control generated 22.7 percent of overall revenue on average at companies offering these services. Renewal fees accounted for 14.5 percent of that.