Even though pest control pricing can make or break any business, using this complete guide, the process is simplified.
By taking advantage of this complete pest control pricing guide, you'll have the power to:
Use this simple step-by-step guide to choose the best pest control pricing and maximize profits for your services:
Since you're likely paying pest control technicians by the hour, it's important to track how long it takes to finish jobs.
Plus, time tracking is even more important if YOU’RE the person in the field. This ensures you’re not taking too much (or too little) profit from the business.
In addition to knowing payroll, it's also important track time in order to maximize your efficiency.
By maximizing efficiency, you'll have the ability to take on more jobs and make more money by shortening the amount of time it takes to complete jobs.
Plus, most clients are thrilled when jobs are finished on time (or even early).
By knowing how long jobs take, you’ll know how much to charge clients.
Start tracking your time by using a stopwatch at every job. This way, you can get a baseline average for various types of jobs.
Even better, you can use a pest control software, like Service Autopilot, to automatically track job times.
Plus, Service Autopilot tells you exactly how long each team is taking on their jobs and route - it even has GPS tracking.
Additionally, you also want to be sure you’re tracking your chemicals (you can also do this in Service Autopilot). Since it's a major expense, you want to be sure clients are paying enough to meet profit goals.
It takes money to operate your business, and you should account for that in pest control pricing.
Typical operational costs include things like:
In order to properly charge for these costs, it's important to track it and create quarterly reports on it.
By the way, did you know you can create your expense reports using Service Autopilot?
The ultimate goal is to make enough profit to grow your business so that business growth never stops.
However, in order to grow, you need capital. In other words, you need additional profit.
As a result, you need to charge pest control clients enough to not only pay for operational costs… but you also need to charge enough to actually grow your business.
The best way to charge for growth is by finding your baseline dollar amount. This is the amount you need to make at each job to break-even.
Once you find out your baseline, you know how much you need to make per job in order to accept it.
Find this baseline number by adding up wages (including your own salary) and operational costs (i.e. overhead).
Here’s the formula:
Wages + Operational Costs = Baseline
Now, you know the baseline you need to make at every job to break-even.
Use your knowledge of marketing to determine your profit. Then, use it to reinvest back into your pest control business.
This is a two-part thought process. Here’s how to do it:
Here’s the thing… you shouldn’t base your prices on your competition. However, you also don’t want to stick your head in the clouds and ignore it either.
You should always be aware of what the local competition is charging. After all, you don’t want to price yourself out of the market.
While you don’t want to base pest control prices on the competition, you should have an idea of what they charge.
Consider what sets them apart… Is it their service?... Reputation?... Both?
Then, get to know the pest control clients in the area. This will help you find out the specific services they want, and what they’re willing to pay for those services.
Also, this gives you a good idea of what your profits should be.
Now, you know your wages, chemical prices per job, operational costs, and baseline.
In addition, you also know how much the competition is charging and what the market is willing to pay.
After you’ve set a comfortable salary for you and your team, start looking at reinvesting back into your business. This is important because it’s what allows you to grow your pest control business.
By properly pricing pest control services with enough profit, you’re providing yourself a cushion.
In turn, this cushion grows the business by giving you the money needed to…
When pest control businesses properly price their services, these actions have helped countless businesses successfully grow.
You know your baseline price for breaking even, and you know how much profit you need to make.
Now, all that’s left to do is establish the final price.
Dos this by adding the baseline cost with the desired profit to get the final price.
Here’s the formula:
Baseline + Profit = Final Price
THIS is the new price you’re going to charge your clients.
Once you know what you’re going to charge them, then it’s time to implement!
Much of the competition doesn't have their pest control pricing right..
Oftentimes, they count their operational costs and add 5-10% based on how they feel. In turn, they undercut themselves because they're not charging as much as they should.
If you’re only charging clients based on a feeling or a 5-10% profit, then you’re not charging enough!
By doing this, you’re not accounting for:
… And a whole lot more.
Stop losing money on unexpected costs. By accounting for these things (and more), you will allow your business to grow and thrive for countless years to come.
Now that you’ve taken these factors into account, you can test your prices to see what works for you and your clients.
Much of the competition isn't testing their prices, which gives you a leg up ahead of them.
They’re too afraid to talk about prices with clients, and they don’t track data to discover where they can make more money.
Test your prices, look at the data, get pricing feedback from clients, evaluate prices on a monthly or quarterly basis, and keep value at the top of your priority list.
Pricing should be an integral part of your company culture.
Manage your clients and employees all in one system
Use this easy pest control pricing guide and calculator to discover the right pricing and maximize profits for your business.
Now, you have the power to do things like:
When you follow the advice in this simple pest control pricing guide, you can start using the right pricing to maximize profits in your pest control business today!
Originally published Aug 13, 2019 7:00 AM, updated Sept 27, 2021 2:37 PM
Tags: Business Operation