Most pest control companies are leaving money on the table. Not because they’re bad at what they do, but because they’re structuring their service plans all wrong.
I see it all the time. Companies doing one time services. Companies doing biannual plans. Companies with no real structure at all, just making up prices on the spot.
After building Pest Badger into a $10 million company, I’ve learned exactly how to structure service plans that maximize customer lifetime value, create predictable cash flow, and build a business that’s actually worth something when you go to sell it.
Let me show you how to do it right.
There's No One Right Way (But There Are Wrong Ways)
First, let me say this: I don’t think there’s a right or wrong way to structure service plans. There are many great plans out there, and every area is going to be different.
Florida is different from Chicago. In the middle of winter, it’s hard to service mosquito control or lawn care when there’s a foot of snow on the ground. But down in Florida, it’s pretty much mosquito season all year round. In the Tulsa market, you can do lawn applications year round.
So your service plan needs to fit your market.
That said, there are some approaches that work way better than others.
Why I Don't Like One Time Services
I don’t like doing one time services. And I know a lot of people just starting out, and a lot of older companies too, haven’t adopted the recurring model yet.
In markets like the Midwest, customers are used to buying one time services or trying new services. That’s not necessarily terrible. When you go to get acquired, if those customers have been there for three to five or ten years, they’re still considered recurring customers.
But here’s what I’m looking for: I want my customer acquisition cost (CAC) to pay off. I want my lifetime value (LTV) of each client to be as high as possible.
That means recurring services.
The Recurring Model: Monthly, Bimonthly, or Quarterly
In pest control, you’ve got options. Monthly, bimonthly, or quarterly services. As long as it’s recurring, I don’t really care which one you choose.
What I don’t want to see is one time or two time services.
Let’s say you do sell one time services, and your average contract value in your area is $400. I think your one time service should be $400. Full price.
If you do a biannual plan and your average ticket is typically $850, then I think your biannual should be $425. That’s my personal thought on it.
Again, I don’t want those customers. Not to say I wouldn’t take them for that price. If I’m going to go out there and do a biannual for $425, sure, I’ll do that. But obviously, it also depends on house size, property measurements, and all that.
Mosquito Treatments and Seasonal Services
Mosquito treatments are kind of the same thing. If you’re in Florida, it’s different. You’re treating every 20 to 30 days down there, maybe taking a month off in December or January.
Up in a Northern market, you’re talking about maybe May through September.
Frequencies change based on location. But as long as it’s recurring and you’re constantly servicing those customers, creating that lifetime value and raising it as high as possible, that’s what I like to see.
Why Recurring Services Matter Beyond Cash Flow
At the end of the day, people are hiring us to prevent issues before they even happen.
Most people think of pest control as reactive. “Crap, I have an issue now. Come take care of it for us.”
But it should be preventative. “I should just get pest control so I don’t have to deal with it.” Whether it’s termites, whatever. Make sure you’re on an annual program. It could be bait inspections, foundation inspections, exclusions, whatever.
We’re showing up to service and make sure they never have any issues going forward.
That’s why they hire us. They hire us for peace of mind. House safe, family safe.
Having that recurring model helps with cash flow and LTV. But for the customer, it’s about us showing up once every 30, 60, or 90 days to make sure they never have an issue to begin with.
Recurring Models Increase Your Company's Valuation
Here’s another reason recurring matters: your valuation is always going to be higher with recurring revenue.
Even if you have a one time service (like an annual treatment), it can still be considered recurring if customers come back every year. This is what people like Paul and John at big private equity firms will argue for on the sales side. “Well, it might not be recurring per se, but they’re still coming back every single year for the past five years. So we’re still going to count them as a customer.”
Again, I don’t like that model. I want to come out there monthly, bimonthly, or quarterly. I want to keep servicing the house because I want my LTV to be as high as possible.
The Average Pest Control Contract Value
I think the average pest control contract value in 2023 or 2024 was like $850 across the country.
If you’re above that, you’re doing pretty good. Below that, there’s room to improve.
I’ve seen companies charging $300, $200, or even less. And it’s crazy. If this one blog post right here can change your business going forward, it’s worth it.
The Math That Changed Everything for Me
Here’s a good example. I bought a company two years ago. They had about 1,400 customers.
Their 1,400 customers were worth $650,000. My 1,400 customers were worth $1.5 million.
Huge difference, right?
You have to go get clients anyway. Make sure those clients are getting serviced the right way. Make sure they don’t have to call someone else to do something other than another service for you for pest control. Create lifetime value with that same customer.
If you have to go out and get 4,500 customers or 1,000 customers or 100 customers, when you have those 100 customers at $60,000, that’s different than having them at $1,000.
Think about it long term. You have to go get the customers anyway. If you’re going to get 1,000 customers, do you want them to be worth $600,000 or do you want them to be worth $60,000? At the end of the day, it’s up to you. But you know what I would do.
Service Plans Keep Your Technicians Busy Year Round
Here’s another benefit people don’t think about: service plans keep your technicians busy.
Let’s say you’re selling a bunch of one time services or biannuals. You go out in the spring and then fall. What are your technicians doing the rest of the summer?
You’re hoping calls are going to come in during the spring, which they always do. April and May, you’re super busy. Then June and July hit. Where’d the work go?
If you have a recurring model, your technicians are busy not just through the summer, but year round.
Winter Cancellations Are a Myth
People always ask me, “What about winter? Won’t everyone cancel in the winter?”
It’s actually the opposite. Our cancellation rate goes lower in the months of December, January, and February than it does during mid season.
Why? Because people still see the value of pest control. We have to go out there and service bait boxes. They’re having rodent issues or had rodent issues in the past. We’re servicing their bait boxes.
The springtime is usually when you see your biggest fall off. People are thinking about being back outside. They’re thinking about moving or they moved. They want to switch service companies. They get door knocked. Whatever it may be, spring is typically when you see the biggest churn.
Not winter.
Pre Frame Your Service Plans from Day One
One thing I’ve learned is to pre frame service plans really well. You explain to customers what the service plan looks like before they even start.
From day one, let them choose which package they want. Whether it’s A, B, or C. They usually go with B.
Then explain exactly what that service covers. Exactly how many times you come out per year. That you retreat any time they have an issue.
Really let them know what to expect. “Hey, you’re probably going to have mosquito issues. We can’t kill all mosquitoes with one treatment. But it’s a reduction service. We can probably reduce your mosquitoes by 70 to 80%. You’re still going to need to wear your DEET and things like that. But at least you can enjoy being outside.”
Setting expectations up front prevents cancellations later.
The A, B, C Package Structure
A lot of pest control owners don’t have any structure to their programs. They’ll just make up a price on the spot based on what they think they should charge that day. It’s wishy washy.
Here’s what works for us:
Package A (Basic): Just basic pest control. Servicing the exterior of the home, interior service. Whether that’s bimonthly, monthly, or quarterly.
Package B (Most Popular): Pest control plus one additional service. Maybe mosquito control or flea and tick. Bundling services together so they get all of that through us.
Package C (Premium): Everything. Pest control, mosquito, flea and tick, fertilization and weed control, aeration and overseeding, termite bait stations, inspections, all of it.
Having these packages lets customers choose. Do they just want pest control? Do they want mosquito? Do they want flea and tick? Do they want fertilization and weed control?
All these things we can bundle together to make sure the homeowner is taken care of every which way when it comes to pest control, while also increasing our lifetime value.
How to Grow $60,000 to $100,000 Without Getting a Single New Customer
You can grow $60,000 to $100,000 with the same number of customers you have now without getting a single new customer. How? By adding services to existing customers.
Think about all the things you can offer:
- Pest control (exterior and interior)
- Mosquito control
- Flea and tick
- Fertilization and weed control
- Aeration and overseeding
- Termite inspections
- Termite bait stations
- Trenching
- Exclusions
Bundle these services. Increase your average customer value. Watch your revenue grow without spending a dime on marketing.
I actually made a whole YouTube video on this. Watch here:
The Pricing Conversation That Changed My Mind
I had a conversation with someone about their pricing. They were only at about $500 to $550 per year as their average customer value.
I told them, “If you just doubled your prices and half of them cancel, you’d still be at the same revenue with half the customers.”
Less work. Same money. Way higher profitability.
That was an aha moment for them.
Let me explain it again because it’s important:
Let’s say you’re doing a million dollars. You have 100 customers. You’re charging them $100 each (just for easy math).
You double the rate. Now you’re charging $200. You double your revenue. You lose half the customers.
You’re still doing the same amount of revenue with half the customers. Less work. Fewer technicians. Same money. But your profitability goes through the roof.
I had to learn this too. I didn’t just make this stuff up. The first time I heard it, I was so scared. “I gotta send out this email? Are these people going to cancel?”
No. They’re not going to cancel. Maybe three or four push back. You explain why you raised the price. But most don’t care.
The Pricing Conversation That Changed My Mind
Every single year, you should be raising prices 3 to 5% anyway. That’s just inflation.
If customers have been working with a company for a long time and they trust the brand, they expect to have a price raise every single year. Everything else is going up anyway.
Gas is going up. Food is going up. Labor costs are going up. Your prices should go up too.
How to Structure Service Plans for Your Pest Control Company
If I were structuring service plans from scratch today, here’s exactly what I’d do:
- Eliminate one time services – Or price them at full annual value
- Create A, B, C packages – Give customers options, push them toward B
- Bundle services together – Pest control + mosquito + flea and tick + fertilization
- Set clear expectations up front – Tell them exactly what’s covered, how often you come
- Price for lifetime value – Aim for $850+ annual value per customer
- Raise prices annually – 3 to 5% every year, no exceptions
- Focus on recurring revenue – Monthly, bimonthly, or quarterly plans
- Think about valuation – Recurring revenue makes your company worth more
Your service plan structure determines your cash flow, your technician utilization, your customer lifetime value, and ultimately what your company is worth when you sell it.
We talk about service plan strategies like this all the time in our free Facebook group, Pest Control Millionaires. Over 2,000 active pest control owners sharing what works, asking questions, and helping each other build companies that are actually valuable.
And if you want the complete guide to building a pest control company that dominates your local market, check out Zip Code Kings. Danny, Jake, and I break down everything from service plans to pricing to creating recurring revenue that builds real equity. It’s the pest control marketing bible.
The bottom line? Stop leaving money on the table with one time services. Structure your plans for recurring revenue and watch your business transform.
