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
PMP article by William Blair's Tim Mulrooney: Why the William Blair/PCO M&A Specialists Pest Index Is Key
New York Times article about inflation: Surging U.S. Inflation Raises Stakes as War Pushes Up Prices
CNBC article about the Fed's rate hike: Federal Reserve approves first interest rate hike in more than three years, sees six more ahead
Articles about a potential recession:
Investopedia: Yield curve explanation
PMP Industry Insiders podcast episode with Rentokil's John Myers
"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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