Demand from commercial establishments and property managers will continue to rise with the economic recovery as residential occupancy rates, new business growth and consumer spending increase. Average annual rainfall is also expected to rise
Los Angeles, CA (PRWEB) November 02, 2013
Pest control services have a buyer power score of 3.2 out of 5. Scores closer to 5 represent better negotiating conditions for buyers. In the three years to 2013, the recovering US economy has led to renewed consumer spending and business expansion efforts, which has fueled an upward trend in prices for pest control services. The need for pest control services will remain stable over the next three years due to consistent demand from downstream commercial and property management buyers, as well as changing weather patterns that are often a catalyst for pest infestations. According to IBISWorld analyst Andrew Rebhan, demand has been favorable for suppliers, and prices are expected to continue their trend of growth in the three-year period through 2016.
There is a wide range in price for pest control services, which makes it more difficult for buyers to budget their costs. A buyer's negotiating power is further weakened due to the fact that regulating bodies mandate that many buyers maintain health and sanitation standards, continues Rebhan. Pest control services are highly specialized and require operators to thoroughly inspect properties and create customized treatment plans for buyers. While some buyers may try to treat pest control issues themselves through general-use pesticides, the tools and chemicals used by professional suppliers are usually more effective, as providers are licensed to use higher-quality pest control chemicals.
Price and driver volatility for pest control services has been low over the past three years, which means buyers have not experienced significant risk of sudden price shifts. Major vendors of these services include the ServiceMaster Company, Rollins Inc., Ecolab Inc. and Rentokil Initial. The supply chain for vendors poses moderate risk for buyers, with some risk coming from the fluctuations in price for different inputs, such as chemicals and crude oil. Buyers will not face a high degree of risk with the supply chain, assuming that downstream demand remains stable and regulations regarding safe pesticide use are not too burdensome for suppliers to comply with. Buyers should determine the need and frequency for pest control services and then enroll in service plans to help mitigate long-term costs and rising prices.
Due to the variety of pest infestation types and service requirements, the price range for pest control services can vary from $50 for simple services, to over $1,000 per treatment for more complex ones. Certain types of pest infestations like termites or other insects require particular tools and treatments, which differ from other services like bird proofing or rodent capture. On average, the more time-intensive the job is, the higher the price a buyer can expect to pay. Material costs also factor into the price, as more complex pest removal projects require advanced tools and pesticide equipment.
While the type of infestation is the first issue affecting pricing, the extent of the infestation can also affect service prices. The amount of time spent treating the pest problem will depend on not only the volume of the pests, but the physical size of the facility being treated. Some problems may be widespread across the entire location being treated, while other infestations only occur in specific or isolated areas, allowing for easier treatment and containment. The supplier will need to determine the amount of effort and time needed to treat such problems, and will adjust price quotes accordingly. Certain buyers may also have a preference for the type of application technique in their pest control service, such as nonchemical or more humane pest control methods, which might be more expensive than traditional pesticides.
Overall costs will also be affected by the contract or service plans that buyers use if they establish long-term agreements with pest control providers. Certain downstream buyers, such as those in the hospitality or medical fields, will usually have a contract that allows for regular inspection schedules to provide greater cost efficiency. These contracts often allow buyers to pay for services in smaller installments, and ensure protection and repeat treatments throughout the length of the agreement. Commercial or residential buildings that encounter a variety of pests or recurring infestations will incur higher costs if they are not covered under a service agreement. Although most suppliers provide some assurance that treatments will keep pests away for a designated amount of time, pests usually return after some time has passed. For more information, visit IBISWorld’s Pest Control Services procurement research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of pest control services for multifamily residential and commercial properties. Pest control services involve the extermination or removal of birds, rodents, mosquitoes, termites and other insects or animals. These pest control services also include fumigation treatments. These services are provided by businesses that specialize in applying pesticides and using other nonchemical means of removing pests. This report does not include pest control services for forestry or agriculture.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Vendor Financial Benchmarks
Buying Lead Time
Key RFP Elements
Buyer Power Factors
About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.