Jesse Rehm of Triangle Pest Control discusses considerations for expanding a pest control business into new markets. Good reasons to expand include reaching market saturation, limited growth in the current market, or acquisition opportunities. When evaluating new markets, companies should analyze demographics like population size, growth rate, income levels and education to find similar areas. Systems and procedures must be in place to support remote branches. A company needs the budget to market in the new location and acquire customers, whether through web, direct to door, or acquisition. Most importantly, the right people must be hired to manage the new location before expanding.

1. Where to Next
Jesse Rehm
Triangle Pest Control

2. Introduction
Jesse Rehm
Triangle Pest Control
CEO

3. I wouldn’t consider myself an expert, but I do have some
experience expanding into new markets
Triangle Pest Control currently operates in five markets:
○ Raleigh NC
○ Charlotte NC
○ Greenville SC
○ Denver CO
○ Colorado Springs CO

4. So you want to
expand into a new
market?
How many of you are considering market
expansion?
How many of you already operate in
multiple markets?

5. What are some good reasons to expand
into a new market?
MarketExpansion

6. Good reasons for market expansion
● You’ve reached market saturation
● Your market isn’t growing
● Acquisition opportunity

7. Good reasons for market expansion
● You’ve reached market saturation
● Your market isn’t growing
● Acquisition opportunity

8. Good reasons for market expansion
● You’ve reached market saturation
● Your market isn’t growing
● Acquisition opportunity

9. Let’s do some
MATH

10. Pest Control Math
According to a PPMA survey
● 32% of the surveyed population have used pest control
● 25% are currently using pest control

11. Pest Control Math
Market size 1,000,000 x .25 = 250,000
250,000 potential customers

12. Pest Control Math
Market size 1,000,000 x .25 = 250,000
250,000 potential customers
Customer base = 3,500

13. Pest Control Math
Market size 1,000,000 x .25 = 250,000
250,000 potential customers
Customer base = 3,500
Customer base/potential customers= market
share

14. Pest Control Math
Market size 1,000,000 x .25 = 250,000
250,000 potential customers
Customer base = 3,500
Customer base/potential customers= market
share
3,500/250,000 = 1.4%
Can you do better than that?

15. Pest Control Math
● Market size 1,000,000 x .25 = 250,000
250,000 potential customers
● Market size 10,000,000 x .25 = 2,500,000
2,500,000 potential customers

16. Market size
10,000,000 x .25 = 2,500,00
2,500,000 potential customers
Potential customers x current
market share =customer base
2,500,000 x 1.4%= 35,000

17. Have you maxed out your
market share?
○ Do you care?
○ Can you really know that?
○ Can you achieve your current
market share in a new market?

18. Short Answers
If you can achieve a similar
market share you will
grow, you won’t but you’ll
still grow.
If you cast a bigger net (leads),
you will have more potential
customers.
If you can maintain a similar
closing ratio you will grow.

19. Things to consider before entering a new
market...
New Market
Demographics
Systems and
Procedures
Budget
- Marketing
- General

20. Things to Consider
PEOPLE

21. Demographics

22. New Market
Demographics
● What is the ideal
population size?
● What is the growth rate?
● What is the average
income?

23. ● Proximity to other
markets?
● What is the average
home value?
New Market
Demographics
● What is the average
education level?

24. New Market
Demographics
● We used our home market
(Raleigh) as our standard
● We looked for markets that were
similar

25. New Market
Demographics
(What we looked for)
● Population size - >1M
● Growth rate - >1.5%
● Income - >$55,000
● Education - >35%
● Proximity to current markets

26. New Market
Demographics
(What we looked for)
● Average age - >35
● Average home value - ≈$200,000
● Professional courtesy
● Staffing - Do you have the right
person

27. New Market
Demographics
(What we looked for)
Key points
● Growth rate - >1.5%
○ Why is growth rate so important?

28. Key points
● Growth rate - >1.5%
○ Why is growth rate so important?
■ Because 65% of people who
use pest control don’t
change providers
New Market
Demographics
(What we looked for)

29. Key points
● Proximity
○ This will be based on your systems
and procedures
New Market
Characteristics
(What we looked for)

30. Key points
● Professional courtesy
○ You don’t want to piss off your
friends
New Market
Characteristics
(What we looked for)

31. Systems and
Procedures

32. System and
Procedures
(Look in the mirror…)
Questions to ask yourself
● Is your business truly ready for a remote
branch
○ This a question only you can answer
○ We did a test branch within our home
market

33. What Does
“Ready” Mean?
● Hiring
● Training
● Communication
● Management
● Technology
● Fun
● Inclusion

34. Budget

35. Budget
How fast do you want to grow and what
are you willing to pay per customer?

36. What Are You
Willing to Pay?
● Web marketing
○ Slow but relatively
inexpensive
● D2D
○ Faster than web
marketing but more
expensive
● Acquisition
○ The fastest way
to grow and the
most expensive

37. People

38. PEOPLE!!!
● Who are the right people?
○ That is for you to decide
● DO NOT consider going into a new market if
you don’t have the right person on your
team
○ Find that person first, then look at
expanding

39. PEOPLE!!!
● Every market we’ve gone into has been
with a proven team member

40. Questions?
jesse.rehm@trianglepest.com