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Episode 75

April 8, 2022

Topic: Q1 2022 Wrap-Up & Predictions

Guests: Dan Gordon & Donnie Shelton

In this episode we discuss:

  • How the February 2022 Pest Index showed a 20 percent year-over-year increase and what Dan attributes that figure to

  • How price increases play a role

  • The impact of the Consumer Price Index and the war in Ukraine

  • What's going to happen with interest rates

  • Is a recession coming?

  • Why Donnie thinks a correction would be a good thing

  • The sweet spot in the economy for the pest control industry

  • What should companies who are big in pre-treatments do?

  • Why it's vital to do a price increase if you have not already and to ensure you have sufficient reserves and credit in case a recession is coming

  • Why the industry grew despite the Great Recession

  • How to (and why) manage your gross margin no matter what

  • The fact that in Q1 digital marketing leads were up, but pay-per-click costs were up even more

  • Confusion related to pass-through entity taxes and what Dan recommends

  • Why you should be careful about employe retention credits in pest control

Resources mentioned:

"There is no better time to do a price increase than right now. Your customers are expecting it. It's one of the rare opportunities you have to do a fairly significant price increase and it not have much of an impact on your business." —Donnie Shelton

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