Keeping pest control prices competitive and profitable can be tricky. You need to consider what your competitors are doing with their pricing, what your customers are willing to pay and your overheads. It’s a balance of business smarts that’s all about understanding your industry well.
“We see a lot of talk on Facebook about what prices pesties are charging and the ‘race to the bottom’ for treatments and inspections. Setting competitive pricing in the pest control industry requires a strategic approach that considers various factors.”
– Rapid Solutions CEO, Belinda Smith
In this article, Rapid Solutions outlines possible factors to consider when setting your business’s pest control prices.
Managing competition while setting pest control prices where you want them
As a pestie, you’ll probably be considering your customer expectations when setting pest control prices. You want to secure the right jobs and grow a loyal customer base. customers will likely consider pricing as a factor when choosing pest control services. That said, price points aren’t the only deciding factors and many other aspects of business affect pricing. too.
So how can you set competitive pricing for pest control?
While the list up next isn’t exhaustive, it does provide suggestions you might find useful.
Do some market research
Market research (like this, this and this) can provide you with insights about your closest and/or biggest business competitors. In an industry like pest control, it’s important not to underprice just to get the competitive edge, since you might lose profit margins and set customer expectations around unrealistic pricing.
This is why finding out what your competitors are doing in terms of their pricing strategies can be useful in terms of understanding the industry standard. Market research can help you gauge how competitors’ pricing structure works and even provide insights into their service offerings.
Market research can also help in other ways. Here are some examples:
- Market research can help you stay on top of industry trends as they emerge.
- Research can help you identify new technologies to streamline reporting and other aspects of your work.
These aspects can help you justify premium pricing. It can be helpful to regularly reassess your pricing strategy based on market changes, customer feedback, and your business goals.
Conduct a pest control cost analysis
Setting the best pest control prices for your current and future business growth means you’ll need to balance your income and costs. It’s all about determining all the costs involved in providing your pest control services, These may include staff salaries, equipment (such as tools and products), rent for your office, garage and equipment storage as well as business vehicles (and business vehicle insurance). You’ll probably need to consider the most appropriate ways to ensure your pest control pricing covers these costs and allows a reasonable profit margin both short and long term.
Make your pest control prices competitive with added benefits
One way to ensure your pest control prices are competitive is by offering services that make you stand out from competitors. If you don’t already, consider differentiating your business by offering added benefits like free follow-up visits, handy information about the pests you’re treating or some other customer care offering. This could in turn give you the freedom to charge pest control prices you’re happy with since you’ll be able to highlight the additional services.
In our interview with Rebel Pest Professionals owner and businesswoman, Leah Kime, she says, “We’d find these issues in the building industry and ask ourselves ‘what can we do to be competitive, or how can we come into the market and provide better service or better product?’. We started with a building company and added and developed companies offering related services.”
One example is pest control businesses offering environmentally friendly pest services. These can help set your business apart and are worth highlighting in your marketing. Standing apart from competitors can also allow you to have more control of your pest control prices. You’ll be likelier to set your pricing without having to worry too much about what your competitors are doing.
Spend time on understanding your target market
Something any business should avoid is seeing the service or product offering through its eyes only. It’s hugely important to see your business (including service offering, style of communication and reputation) through the eyes of your target market. You could do this in a number of ways.
A few things you can do to engage your customer (and learn from them) include:
- Customer testimonials and/or reviews. Share (with permission from customers) your customers’ good reviews about your business on your marketing channels like your website and social media. This helps your business reputation to grow and helps new customers confidently choose your services. Satisfied customers help you justify your pest control prices to your target audience.
- Surveys and feedback. Using software like Involve,me you can send surveys to your existing customers to get their insights on your services. You can also find out what they might want you to change or add to your service offering.
- Customer feedback. Calling and emailing customers to get feedback after a service could help cement your reputation with them. It also allows direct communication between them and the business which can be good for building customer relationships that last.
- Customer Education. It can be a good idea to educate your customers about the benefits of the pest control services you offer. This includes education around potential risks that come from not using professional services. Educating your customers, either through quotes and reports or on your website blog or with newsletters helps them to understand your pest control pricing because they will better understand the value of the service offering. Here’s how to help customers prepare for a pest control visit (before and after).
Even when you and another business offer the same service, the way you engage with and communicate with your audience could make them choose your pest control services. Having a good understanding of your target market can also help you get a good gauge on their willingness to pay for certain types of pest control services.
Make quality assurance a key measure for your business
Any business strategy will likely include the goal of offering quality services. There are a number of ways you can do this from using fieldwork software programs to pest and building management upskilling courses and keeping records efficiently.
If you feel your business achieves these goals, you’ll be able to set your pest control prices confidently. It also means you can advertise the quality of your services. One aspect of quality assurance for many pest control customers is pest control products that are safer. Many customers are eco-conscious and actively seek environmentally friendly pest control services. customers with children and pets may specifically look for pest services for safety reasons too. In cases like these, your pest control prices may not be as important to them as your quality assurance. This is where your quality assurance gives you the freedom to set your pest control prices at the benchmark you believe in.
Consider tiered pest control prices and flexible payment options
Most people (and businesses) consider budget constraints when seeking out a service. For this reason, it’s sometimes worth considering a tiered pricing system. Those who can only afford an entry level service can still do so. They could eventually become loyal customers and when they can afford to, they’ll be able to choose more of your services.
Depending on your pest control business model, you may be able to offer flexible payment plans. Or perhaps you can provide financing options that help to make your services more accessible. Being in a competitive market means being flexible and tailoring your services and payment solutions to what your customers can afford. Helping them could help your business grow over time.
Discounts and promotions have their place
Running a successful business in a competitive market sometimes means it’s worth offering special, targeted discounts or promotions. These can be designed to help new customers take up your services, or to strengthen loyalty among existing customers.
The occasional well-timed and marketed promotion or discount could help you attract new customers and encourage existing ones to schedule regular services. This can in turn help you keep from having to reduce your pest control prices in general.
Consider ways of networking like strategic partnerships
One way to set your pest control prices in a competitive market is by standing out as an authoritative business; Not only does this come from your services or how you engage with customers but it can also come from how to engage your industry. Establishing partnerships with local businesses or property management companies stands to help you earn trust and expand your customer base. This type of networking could grow your business referrals too.
Consider general liability and professional indemnity insurance for your pest control business
Consider general liability and professional indemnity insurance for your pest control business. Having the protection of insurance for your business can allow you to set your pest control prices without as many financial worries. Your insurance can help protect for claims of breach of duty, employee theft, injury or damage to a customer or their property and much more. Click below to get a quote today.