Business Growth

How to Choose the Right Pest Control Business Model (Get Maximum Growth)

Stephanie Figy
Jun 18, 2024
6 min read
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The right pest control business model attracts customers and drives revenue.

Choosing a model based on your service offerings, customer demographics, and business goals is essential. Do you want to scale quickly? Target clients in a particular industry? The answers to these questions help you identify the best model for your pest control service.

Successful pest control businesses often combine business models to build a solid customer base and generate the most profit.

This article explores the pros and cons of several pest control business models and provides tips on selecting the right strategy to drive growth.

8 Types of Pest Control Business Models to Consider

If you’re starting a new business or modifying your business plan, evaluate the benefits and downsides of business model options. Pest control business owners use multiple models to broaden their client base and increase cash flow.

1. Traditional Service-Based Model

A traditional service-based model charges commercial and residential pest control customers per service visit.

For example, a pest control company charges between $250 and $600 for a single visit. A one-time visit includes a pest inspection and treatment application. Customers schedule and pay for each visit if a pest infestation requires a follow-up appointment.

Since this model bases pricing on a one-time service fee, it simplifies pricing by eliminating complicated sales strategies and varying costs of subscription plans. 

On the other hand, this model doesn’t provide convenience for customers who wish to pay a quarterly or annual fee for ongoing pest management services. It also makes it more difficult to retain customers for recurring services.

Pros

Cons

Profitable for individual services

Simple pricing structure

Straightforward scheduling

Inadequate for customer retention

Lack of customer convenience

2. Specialized Niche Model

A niche model provides services for specific types of pests or specializes in pest control for a particular market. This model works well for businesses with unique expertise.

A niche model focuses on:

To develop a niche model, pest control operators conduct market research to understand customer demand and identify a target market. Accurate research determines the profitability of this model.

Companies profit from untapped revenue sources if few local businesses offer these services. In the event of inadequate market demand, businesses can’t generate enough revenue to sustain operations.

Pros

Cons

Capitalize on experience or specialized technology

Reduced competition

Establishes a loyal customer base

Requires market demand

Involves specialized skills

3. Franchise Model

In a franchise model, business owners pay a fee to operate under an established brand. This is an attractive option because they benefit from a nationally known name, proven operational procedures, and a pest control marketing plan.

Entrepreneurs interested in buying a franchise first need to research franchise opportunities.

Key considerations include:

  • Franchise reputation and performance

  • How the brand fits with your business objectives

  • Financial requirements

  • Initial costs, franchise fees, and ongoing royalty fees

  • Training and support resources

Read the Franchise Disclosure Document to learn in-depth details about the company before investing in a franchise.

A franchise model allows business owners to hit the ground running with a developed business model, operational training, and support. Downsides include hefty startup costs, franchise fees, and royalty payments, depending on the franchise.

Pros

Cons

Brand recognition

Established business process

Potential to scale quickly

High costs and fees

Franchise restrictions

4. Subscription Service Model

Commercial and residential customers pay a monthly, quarterly, or annual fee for pest control services with a subscription service model.

Customers appreciate service agreements or contracts because they pay once for ongoing services. Regular inspections and proactive treatments keep pests at bay and provide customers peace of mind.

Examples of pest control packages include:

  • Annual termite plans

  • Bundled services, such as termite and pest control, pest and mosquito control, or termite, pest, and mosquito control

  • Tiered packages, such as essential, plus, and premium

Plans include a set number of treatments within a specific timeframe. Businesses offer service guarantees and retreat between visits if pests appear. Plans include discounts to add value and assist in upselling.

This model requires businesses to evaluate costs and pricing so services remain profitable.

Pros

Cons

Flexible payment options

Ability to upsell

Retains more customers

Requires price adjustments for profitability

Customers notice price changes

5. Partnership Model

A partnership model collaborates with other businesses in related industries to increase sales.

A pest control business partnering with a lawn care or cleaning company provides bundled services to a customer. Customers save time and money by scheduling and paying for services simultaneously.

A partnership model also uses a professional network to acquire new customers.

Consider partnering with business owners in relevant industries, such as:

  • Real estate

  • Property management

  • Janitorial

  • Hospitality

This strategy widens a company’s market and increases sales and revenue. To work effectively, businesses need to demonstrate the value of bundled services to customers. It also requires in-person networking to build long-lasting professional relationships.

Pros

Cons

Increases sales

Generates more customers

Connect with various industries

Reliant on effective networking

Dependent on market demand

6. Government Contracts and Bids Model

In this model, pest control businesses focus on winning federal, state, or local government contracts and bids.

This includes service to:

  • Government offices

  • Courthouses

  • Post offices

  • Public schools

  • Libraries

  • Military bases

  • Parks

Pest control businesses profit from government contracts through a steady source of revenue.

This model also comes with challenges, as it requires an understanding of bid specifications and the bidding process. Pest control operators need to know the true cost of services to create a competitive yet profitable bid.

Pros

Cons

Profitable markets

Long-term contracts

Steady source of revenue

Time-consuming

Highly competitive

7. Consultation and Education Model

Businesses with a consultation model educate clients about pest prevention and management strategies.

This model works well for commercial clients seeking to protect their businesses, such as proper hotel sanitation to stop bed bug infestations. Pest control businesses provide consultations and training sessions, workshops, and educational materials to teach clients and their employees how to avoid infestations.

When used in combination with extermination services, this model offers a comprehensive pest management approach. 

Pros

Cons

Ability to generate more profit

Specialization gives a competitive advantage

Comprehensive approach

Requires specific training

Limited market

8. Product Sales Model

Some customers prefer to handle minor pest problems themselves and seek specific pest control products.

A product sales model sells homeowners traps, baits, repellents, and monitoring systems for a DIY approach. Businesses advise customers about the most effective solutions to resolve specific pest issues. If the DIY approach fails, customers know who to call for professional help.

It’s important to note federal pest control regulations strictly control the distribution, sale, and use of pesticides. Federal law also requires certification of applicators using restricted-use pesticides (RUPs), which the general public cannot purchase or use.

Pros

Cons

Boosts revenue

Provides customers options

Increases leads

Not all customers seek DIY

Consumer products aren’t as effective

How to Choose the Best Business Model for You

The right business model fits with your unique services, expertise, customer needs, and business objectives.

Follow these steps to determine the right model:

  • Perform a market analysis: Analyze the demand for pest control services in your area. Understand the needs of potential customers to develop attractive pest control services.

  • Assess the competitive landscape: Research competitor services, prices, and marketing strategies. This includes reviewing a competitor’s website, blog, and social media platforms. This data helps you develop competitive packages, capitalize on service voids, and create compelling marketing messages.

  • Consider financial resources: Certain business models, such as the franchise model, require significant startup costs. Consider your initial costs, ongoing expenses, and methods of generating a steady income.

  • Analyze operational capabilities: The size of your business and years of experience determine which services to offer. If you or your employees possess industry-specific experience, you can provide niche services or educational training to clients.

  • Determine pricing strategies: Decide how you want to charge clients for services. The most profitable pricing strategies provide customers with options. Regardless of your business model, periodically re-evaluate pricing to adjust for labor and supply increases.

  • Evaluate growth potential: Consider the long-term growth potential of the business model. Will it sustain the business? How will you diversify to maintain growth? Create financial projections to measure business goals.

Set Your Pest Control Business Up for Success

Selecting the right pest control business model is a crucial decision. But it doesn’t guarantee success.

FieldRoutes® pest control software helps pest control operators optimize business operations, improve efficiency, and increase profitability. 

The all-in-one solution: 

  • Simplifies scheduling 

  • Streamlines estimating

  • Automates invoicing

  • Enhances customer communication

Industry-specific reporting features give operators real-time performance insight to make better decisions and scale business effectively.

Ready to set your business up for success? Schedule a demo today!

Frequently Asked Questions (FAQs)

Find the answers to commonly asked questions about pest control businesses.

Q1. How Profitable Is Pest Control?

The average profit margin for pest control companies in the U.S. ranges from 10 to 20%. The amount of profit a business makes depends on the size of the business, services, location, and market factors.

Business owners who deliver quality service, implement efficient processes, and focus on customer satisfaction will attract new customers, generate more referrals, and increase profit.

Q2. Are Pest Control Franchises Profitable?

Pest control franchises are a profitable venture. On average, pest control owners earn $45,243 annually.

Those interested in starting their own pest control business or buying a franchise should research business performance. Understanding financial requirements, startup costs, franchise fees, and ongoing royalty fees is important to determining profitability.

Q3. How Do I Write a Business Plan for Pest Control?

Use a template or follow these steps to write a business plan for your small business:

  • Executive summary: Summarize your business plan.

  • Company overview: Detail business owners, type of business entity, company vision, and number of employees.

  • Services: Highlight pest control services and plans.

  • Pricing: Set your pricing structure.

  • Customer and competitor analysis: Analyze customer demand and how your services set you apart from competitors.

  • Operations plan: Explain your management structure and operational processes.

Financial plan: Provide a financial overview and project future business revenue.

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