Top 10 Pest Control Pricing Strategies

Podcast: Play in new window | Download | Embed

Subscribe: RSS

EntoMarket @EntoMarket EntoMarket has Edible Bugs For Sale!

William Anzueto

Book of The Week
The 4-Hour Workweek: Escape 9-5, Live Anywhere, and Join the New Rich by Tim Ferris

Utah Person Gets Zika

http://www.pctonline.com/article/utah-zika-case-stumps-researchers/

Elements of the pricing mix

What does it cost to deliver your service.
What does I cost to sell your service.
What will it cost to perform a one time service.
What will it cost to perform a preventive service.
What will a call back cost.

What does it cost to promote your service

Analize your marketing costs
Analyse your advertising costs
Analize your branding costs

In order to arrive a pricing strategy you have to know the following

Know your Costs

Cost of Goods Sold
PPE Materials
Service Fleet Expenses
Corporate Vehicles
Fuel
License Tags
Tolls
Insurance
Maintenance
Notes
Charitable Contribution
Liability Insurance
Interest Expense
Finance Charge
Rent
Repair Expenses
Equipment Repairs
Janitorial Exp
Travel & Entertainment Expense
Utilities
Telephone
Cellular Phone
Internet Access
Payroll Expenses
Taxes
Administrative Expenses
Bank Service Charges
Licenses and Permits
Postage and Delivery
Professional Fees
Accounting
Office Supplies
Online Software
QuickBooks Online
Advertising & Marketing
Internet Marketing
Medical Insurance
Podcasting
QuickBooks Payments Fees
Technical Trainning Expenses
Business Training

Things to know for a pricing model

Know your Competition
Know your Objectives
Know your Positioning Strategy
Know your Target Market

Ten Pest Control Pricing Models

1. The Competitive Pricing Model Tthis is an apples to apples comparison and price matching, this is the easiest way to set up pricing but it usually stagnates prices and commoditized services.

2. The Penetration Pricing Model

You set a low price to increase sales and market share, once you have captured the market share then you increase your price. Do have the branding and deep pockets to wage a price war.

3. The Skimming Pricing Model

You set an initial high price and then slowly lower your price to make your service available to more customers. In order skim profits of the market layer by layer similar to the diffusion of innovation.

4. The Service Line Pricing Model

Is your good better best type of pricing strategy
Good is general pests ants and roaches
Better adds rodents
Best adds fleas, ticks and mosquitoes

5. The Bundle Pricing Model

All inclusive in bundles a group of products at a reduced price. You might bundle GHP, L&O and add mosquito control and save 15%.

6. The Premium Pricing Model

Is high set to indicate that the product is “exclusive” I.e Bentley, Rolex and Ben and Jerry’s Ice Cream.

7. The Psychological Pricing Model

The best example of this is wallmart with its .97 and .88 versus .99 or 1.00

8. The Option Pricing Model
This is similar to service line pricing, but very difficult to use in pest control, who wants a particular pest excluded. Now includes bed bug service.

9. The Cost Plus Pricing Model

Is simple you mark up you service based on simple costs like labor and materials, this is mor difficult than it appears for service, you can use this for straight products sales like a wall lamp that the customer can just plug in themselves. Typical mark up is 40% to 50%

10. The Value Based Pricing Model

Considers the value of the product to consumers based on the benefits rather than how much it cost to deliver it.