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The need to raise pest control prices is inevitable as costs naturally increase. Although, there are several ways to minimize the loss of clients during this process.
This article will show you how to increase pest control prices by taking these elements into consideration:
Also, by consistently reevaluating prices, you can ensure maximum profitability, which will allow you to grow the business, maintain profit goals, and properly compensate employees.
In order to accommodate the inevitable rise in costs, it's important to consistently reevaluate prices to offset it.
For example, these recently spiked costs have forced many businesses to reassess prices:
As these unavoidable costs continue to increase, your pest control business is faced with two choices:
Especially during times of inflation, it’s crucial to regularly reassess prices. After all, this ensures you always know your current break-even point and that profit goals are being met.
However, it’s important to not copy the competition due to varying individual business needs.
While it’s important to be aware of the competition’s prices, it’s more important to know average local and state costs.
By raising pest control prices at the right time, you can ensure minimal client loss during the price increase process.
Since the competition is more likely to attempt to poach clients during the busy selling season, it’s important to avoid increasing prices during this time.
Keep in mind, much like your business, the competition is trying to poach your clients with flyers, business cards, targeted social media ads, Google Ads, and more.
In turn, you don’t want to give clients a reason to leave for the competition at this time.
Although, there might be occasions when a raise in pest control prices is unavoidable.
For instance, if a client is causing you to hemorrhage profits, then it’s likely time to let them go to the competition.
While you should always avoid raising prices during the busy selling season, these are a few times when it’s best increase them:
By raising prices during these times, the competition is less likely to have the time to poach them.
Likewise, by raising prices during the end of the busy season, clients are likely to forget about the increase before the next busy season.
Prior to raising prices on the rest of your clientbase, it’s important to first raise pest control prices on least profitable ones first.
In doing so, you can improve the process based on mishaps and feedback.
In other words, you’ll use your least profitable clients as a testing ground before increasing prices on the rest of your more profitable ones.
As a result, you’ll ideally lose less profitable clients when the price increase eventually rolls out to your entire clientbase.
To determine which are your least profitable clients, simply compare your profit goals with each client’s profitability.
By the way, when you use the #1 pest control software, you’ll have the power to instantly check client profitability.
With Service Autopilot, you won’t have to spend countless hours digging through client files to crunch numbers.
All clients impacted by the price increase should receive a letter explaining the decision.
Use this price increase letter to reassure clients this new change is ensure their continued high-quality pest control services:
[insert pest control business logo]
Dear [Client Name],
Due to rising economic factors, [Pest Control Business Name] will be adjusting our prices soon.
Our billing reflects the labor, fuel, chemicals, materials, equipment, office/billing expenses, and various other costs making up the cost of our services.
In order to continue providing you with the highest-quality of pest control services you deserve, our pest control package price [insert pest control service agreement] will increase to $XXX.XX on Month, Day, Year.
We will continue to invest in the best chemicals, materials, equipment, and training available to us. This allows us to send the best pest control technicians to your home.
We’re continuing our commitment to a complete satisfaction guarantee. If you’re not 100% satisfied with your pest control services, then we will return, free of charge, to resolve the issue.
As always, call our office at XXX-XXX-XXXX with any questions, comments, concerns, or updates to your scheduled services.
Sincerely,
[Pest Control Business Owner Name]
[Pest Control Business Owner Signature]
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After the first wave of increasing pest control prices on your least profitable clients, it’s time to make improvements before rolling it out onto more profitable ones.
An easy way to measure the success of your price increase process is by sending email and text surveys asking for feedback.
Then, consider their feedback in order to make necessary improvements before increasing prices on the rest of your clients.
By the way, with Service Autopilot’s automations, you can easily send automated email and text surveys as well as review the results.
Increasing prices can seem intimidating due to the potential loss of clients.
However, this article has shown you how to successfully raise pest control prices while minimizing the loss of clients by taking these key factors into consideration:
Finally, you have the power to raise pest control prices without losing clients. Begin the process today to see an instant increase in profits!
Related: Pest Control Pricing: Complete Guide for Businesses
Originally published July 14, 2022 7:00 AM
Tags: Business Operation, Featured Post
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