The Koerner Office - Business Ideas and Small Business Deep Dives with Entrepreneurs The Margins on this Boring Business are Kind of Insane⏐Holdco Bros Discuss! Ep. #128
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Feb 7, 2025 Dive into the unexpected profitability of pest control and door-to-door sales as the hosts share personal experiences and ethical reflections. Discover the intriguing economics behind this convenience service and learn about creative business models like renting licenses. Hear a success story about a Christmas lighting venture that defies conventional norms. The discussion raises questions about sales tactics and customer loyalty, blending humor with practical advice for aspiring entrepreneurs.
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Summer Sales Success
- Chris Koerner's friend Casey made $100,000 in three months doing summer sales.
- Some summer sales reps even make seven figures, demonstrating the potential of this business model.
Pest Control Economics
- Pest control boasts impressive margins, with an 88% gross margin and 40% net margin.
- Yearly maintenance programs and quarterly treatments contribute to this profitability.
Sales Crew Economics
- Some pest control companies hire mercenary sales crews, paying them 1.3x first-year sales.
- These crews prioritize sales volume over customer retention, leading to high churn rates for some companies.