Pest Control Industry Cost Study

Other Important Ratios:

Other important ratios –These are operational not found in the P/L or Balance Sheet.

Revenue per Customer

This ratio was mentioned earlier but also belongs in the other important ratio category as it is one that is extremely important.

Direct Labor %

Tech labor divided by revenue. I have often said 3 things make profitability in this business: direct labor, advertising and materials. Keep them in line and we have profits.  Keep any one of them out of line and we don’t.

# of Office people to production people

How effective is the office staff at controlling one of the three biggies mentioned above?

Marketing Spend

What % of revenue are you spending on marketing? Is it producing increased revenue?  Is it being measured? Rather than looking at marketing spend as a percentage of total revenue a more useful ratio would be to look at marketing spend over new sales generated by the spend.

Other Important Ratios                                                         Formula

Revenue per Customer                                             Revenue / # of Customers

Direct Labor %                                                          Direct Labor / Revenue

# of Office People to Production People                   # Office People / # Production People

Marketing Expenditure                                              Total Marketing Spend / Revenue

Description Commercial Residential Wood Destroying Bed Bug Others
Revenue Per Customer $1,439 $418 $793 $702 $847
Description Total Company
Direct Labor % 20.20%
# of Office People to Production People 4.1
Marketing Expenditure 6.30%

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