Pest Control Franchise For Sale: NPMA Highlights Value Of Pestmaster Opportunity
Today’s post reviews joint research by Pest Control Technology (PCT) and the National Pest Management Association (NPMA) highlighting the value of the Pestmaster opportunity.
Here’s a couple research-backed reasons to consider a pest control franchise for sale in 2020:
NPMA Research Celebrates U.S. Structural Pest Control Market Resilience Amidst COVID-19 Pandemic
According to new research cited by the National Pest Management Association, the professional pest control industry generated an estimated $9.359 billion in total service revenue in 2019, a 4.3% increase from the previous year.
And though the COVID-19 pandemic’s economic effects will reach our industry, the impacts are far less than you might expect.
“Our biggest concern is with the commercial market segment,” said NPMA’s Rich Kalik in a recent report. “Pest control operators are among the last to be paid for their ‘essential services’ to restaurants and other commercial businesses.” With COVID-19 grinding the restaurant industry to a halt, we can expect some commercial market segment decline.
Nevertheless, where other industries are now seriously struggling, pest control service demand largely continues to hold strong amidst the COVID-19 pandemic, driven by:
- Rising threat of tick-borne diseases as Americans spend more time outdoors at local parks and trails during the COVID-19 pandemic
- The pest control industry’s “essential business” designation
- Increased demand for health related/vectrol control and pest management services in medical and food production facilities
- Increasing pest populations in all states
- Providing disinfecting and mitigation services for COVID-19
Our continued success comes as no great surprise, even during these unprecedented times; historically, the pest control industry showed great resilience during the Great Recession (2008-2009), as commercial service revenue declined by only 2.2 percent.
Despite the challenges of 2020 so far, a majority of owners maintain a positive outlook for their business, with about 6 of 10 expecting their residential and commercial business to increase—and NPMA research supports their outlook.
Joint PCT-NPMA Research Highlights Pest Control Companies’ Low Operating Costs
In a 2015 report titled “Benchmarking Your Business,” joint research by Pest Control Technology (PCT) and the NPMA highlighted the low operating expenses that contributed to pest control companies’ high profit margins.
According to the PCT-NPMA’s 2014 Business Operating Ratio Survey, 28% of all active pest control companies paid out less than $50,000 in total annual expenses. Another 11% incurred $50,000 to $99,999 in expenses, and about 12% had expenses ranging from $100,000 to $199,999.
To put these numbers in context for Pestmaster owners, consider this:
- PCT-NPMA researchers focused particularly on the expenses of big firms—thus, small business owner expenses would be much less
- PCT-NPMA researchers identified a positive correlation between operating expenses and revenues, which most of those 12% paying $100,000 to $199,999 in annual expenses made more than enough to cover those costs and turn impressive profits
- On average, the biggest single business expense among all responding companies was wages, salaries and bonuses (34.2%)—and Pestmaster businesses do not require any employees. In fact, most owners launch their businesses as single-person operations, then scale up as the company grows.
- The PCT-NPMA report is 5 years old—in that time, new pest control technologies and Pestmaster innovations have reduced operating costs even more
Learn More About Pestmaster Pest Control Franchises For Sale
Call 800-525-8866 or visit the Pestmaster Franchise website to learn more about our pest control franchises for sale in your area.Back