Episode 101

10/20/22

Topic: Q3 Reflections

Guest: Dan Gordon & Donnie Shelton

Click here to listen.

In this episode we discuss:

• How Donnie stayed at a "hipster hotel" in Boston at PestWorld

• How higher interest rates and mortgage rates over 7 percent may affect the pest control industry

• How JPMorgan Chase CEO Jamie Dimon said a recession is likely in next six to nine months

• Other potential effects of rising interest rates for PMPs

• How Donnie is preparing for a potential recession (avoiding new debt, shoring up credit lines, preserving gross margin)

• Marketing results Coalmarch is seeing on average: Leads - 0-15% YoY Sales - 10-15% Costs - 70-90% (paid search) Search Volume - 5%

• PCO M&A Specialists/William Biar Pest Index results: June -14% YoY July - 11% YoY Aug. - 18% YoY (reflecting the full implementation of price increases)

• Dan's advice on how to navigate gross margin when labor, materials and fuel are increasing

• Why and how to communicate price increases to commission-based employees

• What Dan and Donnie are hearing and seeing about customer attrition

• An M&A update from Dan's perspective

• The Terminix/Rentokil deal completion

Notable: "Our industry in general is pretty resilient, but be wise. Clean up. Make sure you can weather a storm at less growth." —Donnie Shelton

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