Pest Control Industry Cost Study

The income statement is one of the major financial statements used by accountants, financial institutions and business owners to determine entity profitability.

The income statement is sometimes referred to as the profit and loss statement (P&L), statement of operations, or statement of income.

The income statement is important because it shows the profitability of a company during the time interval specified in its heading.

In the tables that follow, the medians of each market segment were taken and converted into percentages for presentation. Of the 157 companies that reported there were none that only reported working in one segment. Each participant provided 2 or more services with 82% of the respondents reporting at least 4 of the services.

DESCRIPTION  COMMERCIAL   RESIDENTIAL   WOOD DESTROYING   BED BUG  OTHERS   TOTAL
%of Income %of Income %of Income %of Income %of Income %of Income
Revenues 100.00% 100.0% 100.00% 100.00% 100.00% 100.00%
DIRECT COSTS
Technician Labor 20.70% 21.70% 17.37% 22.30% 18.92% 20.20%
Payroll Taxes 1.98% 2.00% 1.74% 2.39% 2.22% 2.06%
Health Insurance Technicians 1.26% 1.58% 1.51% 2.61% 0.57% 1.50%
Employee Benefits 0.70% 0.70% 0.75% 0.78% 0.76% 0.74%
Subcontract Costs 2.00% 2.00% 1.75% 2.47% 1.95% 2.04%
Total Direct Payroll Cost 26.64% 27.98% 23.12% 30.55% 24.42% 26.54%
Vehicle Leasing 3.60% 3.60% 3.60% 3.60% 1.10% 3.11%
Vehicle Fuel 2.24% 2.13% 1.93% 2.70% 2.83% 2.37%
Vehicle Repair and Maint. 1.35% 1.30% 1.21% 1.80% 1.06% 1.34%
Vehicle Insurance 0.65% 1.00% 1.08% 1.21% 1.06% 0.99%
Total Auto Expense 7.84% 8.03% 7.82% 9.31% 6.05% 7.81%
Materials 8.00% 6.30% 15.40% 2.00% 10.72% 8.13%
Supplies – Direct 0.58% 0.70% 0.39% 0.99% 0.24% 0.57%
Materials – Other 0.57% 0.31% 0.34% 0.48% 0.43% 0.44%
Equipment Expense 0.08% 0.10% 0.06% 1.69% 0.08% 0.40%
Total Material Cost 9.23% 7.41% 16.19% 5.16% 11.47% 9.54%
Liability Insurance 1.10% 1.10% 1.44% 1.99% 1.73% 1.47%
Workers Comp Insurance 1.66% 1.28% 0.79% 1.76% 0.56% 1.20%
Other Direct Costs 0.75% 0.70% 0.62% 1.11% 0.54% 0.75%
Total Other Costs 3.51% 3.08% 2.85% 4.86% 2.83% 3.42%
Total Direct Costs Calculated 47.22% 46.50% 49.98% 49.88% 44.77% 47.31%
           
Gross Profit 52.78% 53.50% 50.02% 50.12% 55.23% 52.69%
SELLING & MARKETING % of Income
SELLING EXPENSE
Wages – Sales 2.21%
Commissions – Sales 0.87%
Payroll Taxes – Sales 0.31%
Health Insurance – Sales 0.18%
Total Selling Expense 3.57%
MARKETING EXPENSE
Marketing – Traditional 1.70%
Marketing – Digital 3.50%
Marketing – Other 1.10%
Total Marketing Expense 6.30%
Total Selling & Marketing Expense 9.87%
 
GENERAL & ADMIN: % of Income
Officer Wages 5.00%
Office Wages 7.00%
Management Wages 4.00%
G&A Empl Benefits – Health 0.30%
G&A – Payroll Tax 1.22%
Total General & Admin Wages 17.52%
Office Rent 2.00%
Computer Expense 1.80%
Office Supplies 0.50%
Office Printing 0.20%
Office Postage 0.36%
Bank Service Charge 0.51%
Credit Card Charges 1.34%
Professional fees – Accounting/ Legal 0.94%
Recruiting Expenses 0.05%
Payroll Preparation Fee 0.13%
Dues & Subscriptions 0.30%
Donations 0.29%
TRAVEL & ENTERTAINMENT
Meals & Entertainment 0.27%
Travel 0.15%
Total Travel & Entertainment 0.42%
Utilities 0.34%
Rubbish Removal 0.02%
Telephone Expense 0.16%
Wireless Communications 0.57%
Depreciation 2.43%
Other General & Admin 2.73%
Total General & Admin 32.61%
   
Total Expense 42.48%
   
Operating Profit 10.21%

General & Administrative Expenses

Selling Expense 4%
Marketing Expense 6%
General & Admin Wages 17%
Other General Admin Exp 15%

While the financial performance varied from company to company, the tables above depict the median company results for each category. These results are in line with the percentages we see for the various service lines in our portfolio of clients to whom we provide accounting services.

The Pest Control Industry's Most Trusted Accountants & Advisors

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