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Episode 101


Topic: Q3 Reflections

Guest: Dan Gordon & Donnie Shelton

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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