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How Equitable Are Your Pest Firms Drywood Termite Treat Profits?

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Disclaimer

The opinions expressed herein are my own personal opinions and do not represent my employer's view in anyway. Pick a theme:

No Tent No Chemical Wood Pest Treatment

Expense Chart for Chemical & Non-Chemical Treatment Applications of Drywood Termites



Local chemical treat

Microwave Treat

Heat Treat

Fumigation

Effectiveness %

75-95%

98%

98%

99%

Aprox. Equipment Start up Cost $ $

$1800

$4000

$25,000

$40,000

Maintenance Cost $

Yes

Equipment Parts, Servicing & Safety Protection

None

Yes

Tarps, Blankets, Heaters, meters & Regulator servicing

Yes

Tarps, snakes, Fans, clips, scales, meters & Respirator servicing

Expendable Gas & Chemical Cost $

Yes

Chemical Used

None

Yes

Propane Used

Yes

Fume Gas Used

Vendor Cost $

Yes

Chemicals

None

Yes

Propane Gas

Yes

Fume Gas

Franchise Fees $

None

None

Yes

None

Permit Fees $

None

None

None

Yes

Aprox. Employees

Field Laborers

One

One

Three

Three

Aprox. Treat time Per Average job

1-2 Hours

Prices Low $1-$400

2-4 Hours

Priced at Fume Cost

2-4 Hours

Priced at Fume Cost

2-4 Hours X 2

Priced at Fume Cost

Total % Job Cost Distribution

20% Labor & Chemical

5% Labor only

40% Labor, materials & Propane

60% Labor, materials & Gas Chemicals

Total Profit Retention %

80%

95%

60%

40%


Crunch the numbers yourself and choose your companies profit retention. Then choose the profit retention your company could have. There is a choice in most treatment scenarios. The worst case scenario is probably your current status. Why would a firm continue to forfeit 50% profit in lieu of placing a Microwave Treatment System in a truck, with an
existing Treat Person, who could perform Several Microwave Treatments weekly instead of fumigation and do them within the applicators given work schedule?

It is understandable that there are firms who need to keep their fume crews busy, so they fumigate everything. After all, good loyal employees are hard to find and keep. However, too often work slows and layoffs are mandatory. Then again, at times, workloads expand beyond normal work conditions forcing new hiring. As this occurs, firms have a tendency to think growth in order to improve profits during the ups and downs of business. Often this causes undue hardships to management and employees who could be applying their specialized skills for company good elsewhere.

Adding a Microwave Treatment Crewman to handle the work overload at increased business times will allow to hire less new employees when needed and provide needed profit capitol to help carry existing good employees longer during the slow downs. In this way company growth can be beneficial rather than a burden.

In addition, business growth will occur even more rapid just from word of mouth and advertising the application of a non-chemical Microwave treatment alternative. This also opens the door to new clients, those who are anti chemical, never use pest services and represent about 15% of the current public.

 

 

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Wednesday, 01 July 2009 23:12:44 (US Mountain Standard Time, UTC-07:00)