We know exterminators hate being late with a payment – especially when it’s a customer’s payment. But you can’t deliver if you don’t have the funds to pay your suppliers.
While growing your pest control business is difficult and requires determination, you must keep up with the industry trends to thrive. All that hard work can pay off in a big way if you reap the benefits of saving money on your customers’ pest control costs. Cash discounting can help in this regard!
Use this guide to the discount program for exterminators and understand how the program works. Also, we mention how you can use it to generate additional business, increase your cash flow and fuel your growth.
What Is a Cash Discount Program for Exterminators?
A cash discount program is a way for exterminators to give their customers a discount on service when they pay in cash rather than using credit/debit cards.
It’s a way for exterminators to reward their customers for using cash instead of credit cards and other payment modes. You can do this by giving the customer a percentage off their bill. Then, you can use this profit to help offset other expenses or save for later.
As you can imagine, giving customers discounts on services is not only beneficial to the customer but also good for your business as well. That’s because it means more people will become loyal customers and keep coming back again and again.
What Are the Challenges of the Pest Control Industry?
Pest control is a service that everyone needs to get rid of bed bugs, carpenter ants, and other common pests. It is important to understand the challenges of the pest control industry to ensure you are getting your money’s worth.
Note that certain challenges might be a threat to your business. Some of them are as follows.
Visibility Across Areas
One challenge that has emerged is visibility across areas. With the growth of digital marketing and social media, companies have begun to expand their reach beyond their local communities. This has made it more difficult for small businesses to compete with larger ones that can afford to advertise nationally on television or online. It also makes it more difficult for consumers who want to buy from local businesses. It is because they don’t see these businesses advertised as often or heard about in the news as often as national chains.
Inflationary pressure is a challenge for the pest control industry. As the average cost of living increases, customers are looking for ways to cut corners, and pest control is one area where they can do so. To stay competitive, companies need to find new ways of doing business that don’t require raising prices.
Increasing Costs of Exterminatory Services
In recent years, pest control costs have increased by more than 3% per year. This is due to the rising cost of labor and materials needed to conduct the extermination and the increasing frequency with which pests need to be treated.
This increase in pest control prices has forced most companies out of business, leaving only those that can afford to pay their employees more and offer better benefits.
How Can a Cash Discounting Program Solve the Challenges Faced by New and Professional Pest Control Companies?
Cash discount programs are a great way for exterminators to overcome their challenges.
Narrows Credit Card Processing Fees
Cash discounting programs can help most pest control companies save money on credit card processing fees. Credit card companies like Visa, MasterCard, etc. charge a fee for each transaction, which can be expensive if you’re not careful.
The average credit card processing fee is 2%. That means if you earn $10,000 in sales, you’ll pay $200 just in fees!
Using a cash discounting program will encourage customers to pay you in cash rather than using credit cards. Thus, you can eliminate the need for credit card processing fees, making your business more profitable. You will also be able to increase sales and decrease costs by offering customers a discount for paying in cash.
Increase Profit Margin to Tackle Inflation
The benefits of a cash discounting program go beyond just saving money on credit card transaction fees. When you use this program, you will also be able to increase your profit margin. It is because cash payments eliminate those 1-2% transaction fees.
This means that you can make more money from each sale. So, you can use that extra revenue to cover any unexpected expenses or increase your profits even further.
Cut Down Chargebacks
Exterminators can offer customers cash discounts to avoid the risk of working with clients who may not be able to pay their invoices on time or at all.
By offering a cash discount, you can ensure that you get paid quickly and fully. Hence, it will help you stay in business and provide customer service.
Besides, a cash discounting program can help exterminators reduce the number of chargebacks they see and ensure that their customers pay on time.
Advertise Your Exterminating Services
The pest control industry is competitive, with many companies competing for the same customers. The challenge for any business in this field is to be seen as more reliable and trustworthy than the competition. It can be difficult when so many other pest control companies are trying to get their attention.
Cash discounting programs allow the best pest control company to offer a discount upfront when people call for an estimate on their extermination needs. This can be a great way to entice customers into calling you instead of another company because they are more likely to take advantage of a discount than not.
What’s great, it is an excellent way for exterminators who are just starting or not yet established enough in their industry to get some traction with new customers.
It also gives existing customers an incentive to use your services again. Besides, word-of-mouth has always been one of the best ways for any company to grow its customer base!
Is a Cash Discount Program Best for Your Pest Control Company?
A cash discount program can be a great way to attract new customers and incentivize repeat business. But it’s not right for every pest control company, and it’s important to consider whether this program might work best for your company.
Here are some things to think about:
- How will you implement the program? Will it be an automated system that automatically discounts the price each time a customer pays in cash? Or will you give out an offer code to customers who pay in cash?
- How often should you offer these discounts? Do you want to offer them every time someone pays by cash or once per customer (e.g., on their first visit)?
- Do you want to limit the number of times customers can use the discount code? If so, how many times would be reasonable?
- What kinds of best pest control services do you offer? Is there a clear reason some services or products could be more easily discounted than others?
- Do you offer pest infestation services on a contract basis? Are you going to be charging by the hour or by the job? How many people will be involved in the transaction? And how much time do you have to get the money from each customer?
- Can you truly handle cash payments and transfer them to your bank securely?
How to Get Started With a Cash Discount Program for Your Pest Extermination Business?
If you’re ready to start a cash discount program for your professional pest control company, we can help!
We know that starting a cash discount program can be intimidating, but we’ve put together a list of steps to simplify the process.
- Contact a credit card merchant and learn about the program. You’ll want to find out what equipment is required to process payments with your POS system and how much it will cost to get started.
- Buy signage and POS systems. Once you know how much it will cost, order the necessary equipment and start advertising your new program! You’ll also want to ensure that you have plenty of signs so customers know about your new offering!
- Start selling! Be sure to check in with your merchant regularly throughout the year so they can help troubleshoot any problems as they arise. And don’t forget: if you ever need help with anything related to your cash discount program, just reach out!
A cash discount program for exterminators and pest control service providers is a way to incentivize your clients to pay you in cash after/before their services are rendered.
By offering a discount for paying by cash, you can encourage your customers to pay early, which will help you avoid late fees and get paid faster. It is also the best way to overcome the effects of increasing pest control prices.
A cash discount program is also an excellent way to build relationships with your clients, especially if they’re new to your business. Learn more about how it works in detail within our credit processing resource bank.
Paul Martinez is the founder of EcomSidekick.com. He is an expert in the areas of finance, real estate, eCommerce, traffic and conversion.
Join him on EcomSidekick.com to learn how to improve your financial life and excel in these areas. Before starting this media site, Paul built from scratch and managed two multi-million dollar companies. One in the real estate sector and one in the eCommerce sector.