pest control

Should my pest control company move customers from one-off treatments to recurring quarterly plans?

Short answer

Yes. A one-off general treatment at $225 is often the only money that customer ever spends with you. A plan at $150 for the initial service and $60 a quarter is $330 in year one and $240 a year after. At an assumed 80% annual retention, that is about $676 over three years per plan customer, and 300 plan customers is $72,000 a year of recurring revenue.

One-off job versus a plan customer
One-off treatment: $225
Plan year one: $150 initial + 3 × $60 = $330
Year two at 80% retention: $240 × 0.8 = $192
Year three: $240 × 0.64 = $153.60
Three-year value: $675.60

About three times the value of a one-off customer, and 300 plan customers at $240 is $72,000 a year before the phone rings.

The one-off job is a single transaction that ends with the customer having no reason to call you again until the problem returns, at which point they search again and may find someone else. A plan keeps you as the answer to that question.

The initial service fee does two jobs. It pays for the heavier first treatment, and it gives the customer a reason to stay: cancelling means paying it again with the next company.

Recurring stops are cheaper to deliver than one-off jobs. Quarterly visits can be scheduled into dense routes, and a follow-up exterior treatment on a known property takes far less time than a first visit to a new one. Route density is where plan margin comes from.

Sell the plan on every one-off call, at the end of the treatment, with the price for the first year stated as a monthly or quarterly figure rather than an annual lump.

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Related questions

Figures are typical ranges for small businesses in the UK, US and Canada, given so you can check them against your own books rather than take them on trust. They are arithmetic on stated assumptions, not a forecast, and not financial advice.