Casey McDaniel - Pest Control Guy

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Casey McDaniel - Pest Control Guy

Casey McDaniel - Pest Control Guy

@pestctrlguy

My cousin and I started a pest control company with $10k total in 2022. Sharing every step of the journey.

Colorado Katılım Nisan 2023
426 Takip Edilen7.5K Takipçiler
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Casey McDaniel - Pest Control Guy
Casey McDaniel - Pest Control Guy@pestctrlguy·
Why is pest control the best industry? Each tech can service >$400k in a year Quarterly services cost $125 and take 20 minutes to complete Compare it to trash pickup where they charge $40 a month and service weekly. Labor is cheap Products are cheap Margins are insane
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Casey McDaniel - Pest Control Guy
Casey McDaniel - Pest Control Guy@pestctrlguy·
I’ve seen a lot of people start pest control companies. Sales > operations Salesman that start companies generally have a worse service, higher cancel rate, and worse reviews. Despite this, I see a lot of former d2d salesman hit $1 million in revenue within 2-3 years. Technicians with a ton of industry experience frequently go out on their own as well. Despite having a far better service, they often struggle to ever hit $1 million in revenue. It’s cheaper and easier to hire ops guys than sales guys.
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Casey McDaniel - Pest Control Guy
Casey McDaniel - Pest Control Guy@pestctrlguy·
Customers do notice because we send out service reminders. We have a warranty where we come out for free and most customers expect that that’s within 48 hours. Pest control generally is not an emergency but customers feel like it is and will call until they find someone that will come out same day or next day. In any business if the phone doesn’t ring you’re dead. That’s the whole sales part! Do you really believe what you’re saying or are you rage baiting me? lol
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Ben Bortner
Ben Bortner@Slackwatercap·
In pest control, if your tech quits and you can't service any customer's homes for a week or two no one even notices. And the auto pays still keep going through anyways. In HVAC, if you don't make the phone ring every day, you're dead. Or, if your tech quits and you can't respond to the calls coming in fast enough, you're getting a lot of angry customers and 1-star reviews.
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Casey McDaniel - Pest Control Guy
Casey McDaniel - Pest Control Guy@pestctrlguy·
We do Crawlspace encapsulations, attic restorations, wildlife trapping and exclusion, bed bugs, termites etc. But yes, if you take our most simple service and explain it simply then I guess it easy. HVAC is just replacing air filters anyway. How hard can it be to operate? See how silly that sounds?
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Ben Bortner
Ben Bortner@Slackwatercap·
@pestctrlguy Pest Control operations are SMB operations on easy mode. Sales are much more important. I think we agree? HVAC, for example, is much more operationally complex.
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Casey McDaniel - Pest Control Guy
Casey McDaniel - Pest Control Guy@pestctrlguy·
@Slackwatercap Ben, what you’re describing is operations! I mean we can water down any business model to this. How hard is it to pick an order from a warehouse and ship it to a customer? Amazons operations are a scam!
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Ben Bortner
Ben Bortner@Slackwatercap·
That's because there's no operations to pest control. It's mostly a sales based scam. Send someone to show up once a quarter (doesn't matter if it's exactly the same week or day so no operational complexity if it gets pushed a day or week). Put some paper traps out. Spray a little mystery liquid. Get paid. There, I said it. 🤷🏻‍♂️😂
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Cole
Cole@ColeStuart177·
@pestctrlguy My wife’s pest biz (she is ops, has a partner that is tech training/sales), had someone leave and I’m selling for her on a Partime basis. Outselling their previous person by a lot. I was #1 rep at a company in 2013. Feels bad they wasted a whole year with an ineffective rep.
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David W Gibson
David W Gibson@DavidWGibson1·
@pestctrlguy What is your friend doing wrong? Why is he not able to service these people?
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Casey McDaniel - Pest Control Guy
Casey McDaniel - Pest Control Guy@pestctrlguy·
I came to my childhood hometown for a wedding reception today. Afterward my toddler son needed to get his wiggles out so we went to the park. As we were getting back in my truck the lady parked next to us asked for a business card. I had to explain that we don’t service this area and referred her to a friend. This friend is the guy rented us his license while we started our company and needed a license holder. We won’t open up here until he is done in the industry. But when I’ve been in town for 30 minutes and I’m already getting people flagging me down it’s tough to not want to set up shop here.
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WoodSauce801
WoodSauce801@woodsauce801·
@pestctrlguy Perhaps if you made a simple but informative infographic explaining the unique process and why it’s so hard and takes so long, conversions would go up.
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Casey McDaniel - Pest Control Guy
Casey McDaniel - Pest Control Guy@pestctrlguy·
I am always surprised when people call in for a quote for bed bugs and are so shocked when we give them the price. Bed bugs are not typical pests. I can’t spray the same stuff we might use for ants and spiders and have any of them die. Heat treatments can run thousands of dollars and people are expecting the price tag to be $99. In a related note, we’re 0/1 on closed leads this morning.
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SkeeterJuice
SkeeterJuice@kshipssss·
@pestctrlguy Haha. I don’t think it’s any companies specific price either, it’s the price in general, like you stated. Bed bug prices range from ~$200/room in our area to $3500 for a 3 bedroom 🤷‍♂️
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Will Schryver
Will Schryver@Will_Schryver·
Platform EBITDA $18M Add-on EBITDA $2M ← 10x Platform PF EBITDA $20M ← 16x Platform multiple applies to full $20M EBITDA, even if 10% was acquired recently HVAC platform gets full credit for $2M HVAC add-on as part of a recap Which is why private equity can “afford” to pay a premium right before a platform exit
Will Schryver@Will_Schryver

Private Equity can pay a rich multiple for HVAC or Roofing add-on before a recap Champions paid 11x for $4M EBITDA HVAC Why? $30M of additional enterprise value Blackstone bid 18.5x for Champions Group as part of the sale process to recapitalize (18.5x - 11x = 7.5x on $4M) Immediately accretive for Champions equity holders Paying 10x could of lost the deal; paying 11x to lock in the deal and create additional $30M PE-backed platforms will commonly do this for right before an exit / recap to get full credit on as much EBITDA as possible Including getting full credit for deals still under LOI but not yet closed This is one reason why one HVAC or Roofing Co could get a premium multiple over another Right timing with the right buyer

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‏ً@omgsidewalks·
Actually, requiring Doctor’s notes to excuse sick days is inherently classist in a country without universal healthcare, and it is wild how little that is discussed.
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Nathan Quinlan GC
Nathan Quinlan GC@NathanQuinlanGC·
Wu-Tang taught me: Cash Rules Everything Around Me. Client hits me up for a ~$200k addition. Solid convo, then drops: “Any discount if I pay cash?” Turns out they’ve got it on hand. Look, I get it—some folks wanna save or keep Uncle Sam out the loop. But hauling that kind of paper? I’m over here wondering if I need to call my Wu-Tang security detail. Who else gets the cash discount ask on big jobs? How do y’all handle it?
Nathan Quinlan GC tweet media
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