Industry News, June 2000

News from around the pest control industry

Sears Plans Increased Franchises In United States

Orlando, Fla. -- In a move designed to increase its name throughout the United States, Sears Termite & Pest Control has recently announced plans to step up its expansion and grow its business through increased franchising. Although Sears will continue to acquire pest control companies and open Sears company-owned stores, most of the growth in the years ahead is intended to be through franchising, headed by Sears’ Kurt Muller, director of new markets.

Prior to the 1997 acquisition of what was then All-America Pest Control (which is now Sears Termite & Pest Control), Sears had a long history of licensing in pest control, said Bob Case, president, Sears Termite & Pest Control. "But the licensing agreement had outlived its usefulness," he said.

According to Case, a franchise agreement is better than a license agreement for Sears because it allows franchisees to take advantage of the established Sears name. Franchisees will also enjoy Sears-provided marketing, technical expertise and training assistance that is ready to be implemented, he said.

But why would Sears allow anyone who is not owned by Sears to provide Sears service? "We think we have a win-win situation. We have a situation that is a win for Sears because this is a strategy that allows us more rapid expansion," Case said. "And we have a win for prospective franchisees because we have an opportunity for those that have a compelling interest in this industry to take a proven game plan, proven marketing tools, proven systems and combine those with leverage on the purchase of materials, chemicals, supplies and vehicles."

Case emphasized that Sears is not interested in converting company-owned Sears stores into franchises. Nor does the new franchise plan replace Sears’ strategy of continuing company-owned growth. There are currently more than 120 company-owned stores, mostly in the Southeast, Texas and Arizona. The company plans to franchise the Sears name in areas of the United States where it isn’t currently established.

Case said Muller has been charged with establishing six or seven new franchises this year and 15 to 20 next year. "We want to prudently select ideal markets and ideal candidates," Case said. "If we were to rush to explode this to too many markets at one time, then we know there would be a loss of consistency of delivery of service and that the end-use consumer wouldn’t win.

"This isn’t a fast-food kind of approach," he said.

B&G Equipment Company Launches New Logo

Plumsteadville, Pa. -- To keep its name synonomous with innovation, B&G Equipment Company recently launched a new corporate logo. Since the 1960s, the company has used a stainless steel compressed air sprayer that incorporated the history of the company. However, B&G said that a new identity was required to assist in marketing initiatives and in clarifying B&G’s technological leadership. "Due to the lack of a contemporary identity, many failed to see B&G as a company with the best quality of pest control solutions within the industry. As such, we need to market ourselves with one clear image," said Cecil Patterson, the company’s CEO and president.

Florida Convention Helps Open Dialogue

Ft. Lauderdale, Fla. -- The sixth annual Certified Pest Control Operators Association (CPCO) of Florida Convention, held in Ft. Lauderdale, Fla., in April gave PCOs and regulators forums to interact and discuss many important industry-related and legislative issues.

This year’s convention was extended an extra day to include an all-day management session presented by Norm Cooper and Lloyd Smigel, industry consultants. More than 400 PCOs attended the management and education sessions, which were free of charge, and a total of more than 900 people attended the three-day convention.

The educational sessions covered a wide array of topics, ranging from the pros and cons of termite baiting to buying and selling a pest control business. The sessions were presented by 16 industry professionals including Paul Hardy, technical director, Orkin Pest Control; Jeff Tucker, president, Entomology Associates Inc.; and Austin Frishman, pest management consultant.

But the classes were more than just educational — they were open dialogue sessions in which PCOs could share their experiences and learn from industry experts. One such session in which PCOs vented their feelings and were able to get answers to tough questions was an open forum consisting of a joint industry panel that included representatives from the Florida Department of Agriculture and Consumer Services (DACS). The panel was moderated by Smigel and consisted of attorney Greg Crosslin, Crosslin, Slaten, and O’Connor, Montgomery, Ala.; insurance industry representative Pat Geiger, Tri-County Insurance, Hallandale, Fla.; new DACS Bureau of Entomology and Pest Control Chief Wayne Gale; outgoing Bureau Chief Steve Dwinell; DACS Environmental Manager, Division of Agricultural Environmental Sciences Phil Helseth; and CPCO Executive Vice President Mel Edelstein. A variety of topics was discussed, including contract languages and liability concerns.

"We let the people speak out and get the information out of the horse’s mouth — from the department that oversees us," Edelstein said. "I think we have a wonderful relationship with our regulators. We work

in tandem with them to solve problems before they get out of hand. Bringing (this panel) together shows our industry that (DACS members) aren’t ogres that are out to get them in trouble. All they want to do is tell them the right message."

The panel also suggested that PCOs be the "eyes and ears" of the industry, reporting illegal operators to DACS. Edelstein expanded on that message, encouraging PCOs to get involved with their associations to help eliminate problems plaguing the pest control industry in Florida.

"The only time I see many of the PCOs in that audience is when they are here for their CEU’s — when it’s mandated," he said. "They should be here all year round. The only way we are going to get things done is through strength in numbers."

More than 105 exhibitors attended this year’s event. Edelstein said CPCO is planning two conventions for next year. In addition to the Ft. Lauderdale show, a second convention is being planned for central Florida, which includes the Tampa and Orlando areas.

Lowe’s To Return Forshaw "Professional-Use" Products

Charlotte, N.C. -- Tom Forshaw III, Forshaw Distribution, has announced that Lowe’s has agreed to return all professional use chemicals back to Forshaw Distribution (see May PCT). "I will take control of at least 75% of the original order and absorb any cost associated with the return," Forshaw said.

"Back in January I sold a line of products to Central Garden & Pet with the understanding they were going to stock the product in selected Lowe’s stores. The understanding I had with Central Garden & Pet was that the line of products would only be sold as a professional sales line item in the contract-to-sales division," Forshaw wrote in a letter to his customers.

Apparently, the process broke down between Forshaw, Central Garden & Pet and Lowe’s and "professional-use" only products were sold directly to consumers. Forshaw has maintained that his position is to serve the professional pest control market, not the consumer.

Industry Mourns Loss Of Legend

Dallas -- Clayton Wright, the legendary founder of B&G Chemicals and Equipment Company, Dallas, Texas, lost his battle with cancer in early May. He was 78.

A "larger than life" figure, Wright built B&G Chemicals into a well-known product distributor with seven branch offices throughout Texas and Oklahoma. The company recently celebrated its 50th anniversary.

Considered an industry pioneer, Wright witnessed the industry’s growth from a "mom and pop" business to a thriving service industry with high-quality pest control firms in all parts of the country. During his five-decade-long career in pest control, Wright touched many in the industry with his commitment to the betterment of others.

"Clayton Wright had a boyish smile and a true love and belief in people. Clayton looked for the good in everyone," said Rick Rogers, a veteran Texas PCO and a close friend of Wright.

Wright, a student in the first entomology class at Purdue University, developed an early commitment to industry education and in the 1960s began a 40-year tradition of hosting PCO training events and supporting industry scholarship funds.

"Dad was always a believer in the importance of education. I think that the accomplishment he was most proud of was the establishment of the B&G workshops. They were his brainchild long before anyone had ever heard of CEUs," said his son Tom Wright, who in 1988, took over many of the day-to-day operations of B&G. "Nothing will ever replace his smile, his voice, his dynamic presence in our lives, but in the midst of our grief, it is a comfort to know that dad had so many loyal friends and customers.

Wright is survived by his wife, Patricia Chamberlain; three sons, Bill, Fred and Tom; two stepdaughters, Norma and Cathy; 14 grandchildren; and seven great-grandchildren.

Memorial donations can be made to the Clayton C. Wright Endowed Scholarship, Texas A&M

Foundation. Donations can be sent to Tammy Shupak, Agriculture Program Development Office, Texas A&M, 2142 TAMU, College Station, TX 77843-2142.

Companies Offer $1 Million Roach

Tucson, Ariz. -- Fourteen pest control companies throughout the United States have banded together and offered the public a chance at winning $1 million — that is, if he or she finds the right roach.

The 14 companies — who are members of the Discovery Retreat program offered by consultant Lloyd Smigel — have all released 25 roaches in their cities. One of the 350 roaches is marked with a specially numbered barcode that could be worth a ton of money to its finder.

The contest began on May 1 and ends June 30. Winners will be announced July 31 although the companies haven’t yet decided how or where the awards ceremony will be held. "It will be unbelievable," said Bruce Tennenbaum, Arizona Pest Control, Tucson, Ariz.

Consumers are being encouraged by billboard and radio ads (and a lot of PR by local media outlets) in each of the 14 cities to collect roaches and bring them to their local participating company. There, the roaches will compete in a "largest roach" contest for $1,000. The largest roaches from each city will compete for $5,000.

Tennenbaum, who has been on CBS’ Early Show about the contest, ran a similar contest two years ago with his company although in 1998, no one found a barcoded roach (see PCT, August, 1998, pg. 8). But as of press time, two specially marked roaches have been returned to Tennenbaum. Barcoded roaches have been returned to two companies: Ashland Pest Control, Buffalo, N.Y.; and Halt Pest Control, Beaverton, Ore.

The idea for the contest came out of meetings the members of 14 companies had at a Discovery Retreat meeting by Care Management Consultants, Bishop, Calif. According to Smigel, the goal of the group is to exchange information between non-competing companies; to encourage respect to each other, employees and customers; and to share and inform attendees’ experiences, techniques, problems and frustrations in order to become more professional and profitable.

"The Discovery Retreat has provided a forum for discussion of current and future topics important and vital to the growth of our businesses," said Scott Phillips, president, Blue Chip Exterminating, St. Louis. "In addition, it has given us a network of friends around the country to act as a board of directors."

The companies participating in the "Million Dollar Cockroach" contest include: A-1 Exterminating Services, Charles Town, W. Va.; Arizona Pest Control, Tucson, Ariz.; Ashland Pest Control, Buffalo, N.Y.; Al Hoffer’s Pest Protection, Coral Springs, Fla.; Blue Chip Exterminating, St. Louis; Halt Pest Control, Beaverton, Ore.; Hydrex Pest Control, Petaluma, Calif.; Anti-Pesto Bug Killers, Clearwater, Fla.; Bug Busters, Chattanooga, Tenn.; Bug Busters, Atlanta; Dugas Pest Control, Baton Rogue, La.; Horizon Pest Control, Midland, N.J.; Myers Services, Dallas; and F&W Pest Control of Framingham, Mass.

For more information about participating in the contest next year, contact Tennenbaum at 520/298-7841. For more information about Discovery Retreats, contact Lloyd Smigel at 888/711-3232.

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