Episode 249
- Marisa Palmieri Shugrue
- Oct 30
- 2 min read
10/30/25
Topic: New Pest Control Industry Cost Study Data Revealed
Guests: Dan & Donnie
In this episode we discuss:
Why you may want to watch this episode due to the accompanying slide deck
Our sponsors Coalmarch by Workwave, PestSure & Voice for Pest
PMP Industry Insiders Peer Groups and how Pest Control Business Coach's Sheri Spencer Bachman will be leading new groups for smaller operators
The new Pest Control Industry Cost Study, produced by PCO Bookkeepers & M&A Specialists in partnership with the National Pest Management Association
The size of the U.S. pest control industry — presumably more than $12 billion, according to Dan Gordon
An overview of the Cost Study's participants
Gross margin: What it is, why it's vital in pest control and the role it plays in breaking even
How gross margin came out between 55-60% compared to 50-55% in the past
Revenue growth: It's important and benchmarks by region
How average revenue growth came in at 9.5%
Recurring revenue's impact and how the report is showing companies between 70-75%
An example of the difference in profitability and sustainability between a company with 80% recurring revenue vs. and a company with 50% recurring revenue
The PCOB Competitive Index™, a new composite score Dan and his team developed
How the PCOB Competitive Index takes into account growth, profitability and quality of revenue
How it goes further than the Rule of 23, which is a composite of growth and profitability
How to calculate the Competitive Index
Why the average Competitive Index score is in the 0.20 range
How much to spend on marketing and Cost of Goods Sold (COGS), which is the reciprocal of your gross margin
Team member productivity benchmarks, including average revenue per tech clocking in around $200,000
How Dan sees best-in-class clients with average revenue per tech in high $200,000 to $300,000
Debt and liquidity benchmarks
The three things Dan says will make or break a pest firm: direct labor, materials and marketing
Resources mentioned:
Notable: "The fact of the matter is that the financial model of pest control really doesn't change." —Dan Gordon
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