1. Measuring Quality Service, Consumer Retention and Team Work www.pcobookkeepers.com To Grow the Bottom Line Daniel S. Gordon, CPA www.pmpwealthbuilders.com

3. To maximize the value of Our Business…. Period ! There is no other reason !! Why are we in Business?

8. 2009 PCO Bookkeeper’s Client Results PCO Bookkeepers – The goal of PCO Bookkeepers is to assist in the pest control industry in making effective management decisions by providing meaningful financial information on a timely and cost-efficient basis. In a phrase: Today’s Economic Environment WE ARE AN ACCOUNTING FIRM WITH A HIGHLY SPECIALIZED EXPERTISE IN THE PEST CONTROL INDUSTRY

9. Relevance of the PCO BOOKKEEPER Information: Our Data is not the result of a survey where the respondents can skew data either purposely or non purposely. Our data comes from the transactional accounting records found in our clients pestpac , servicepro , quickbooks and payroll records that we maintain and create financial statements on a monthly basis. When it comes to operating a Pest Control Firm, purchasing new vehicles or computer systems or making an important decisions, it can be extremely helpful know what other independent PCOs are doing. Today’s Economic Environment

15. Growing Your Bottom Line Business today has become a race to efficiency. Those companies who can become more efficient in managing their businesses will grow their bottom line. Efficiency can be improved through effective Measurement The length of a piece of string can be measured by comparing the string against a meter stick Definition : Measurement is collection of quantitative data. A measurement is made by comparing a quantity with a standard unit. Since this comparison cannot be perfect, measurements inherently include error.

17. Measuring Quality Service, Customer Retention and Teamwork All Three Factors are interrelated Growing Your Bottom Line Successful Execution by managing through Measurement Quality Service Customer Retention Teamwork Increased Bottom line

38. Break-Even Analysis Break-Even point = Fixed Costs Gross Profit per Hour. in units (service hours) Putting it all Together Putting it all Together

39. Definition Fixed Costs Any cost that remains constant at any volume of business Examples: Rent, Advertising, Utilities, etc. Putting it all Together Putting it all Together

41. Gross Profit The difference between the price charged per Unit (Hour of Service) and the Variable Costs. Example If we bill our service at $100 per hour and a technicians gets $20 per hour and all other variable costs associated with providing that hour of service are $30, our gross profit would be $50. (figured: $100 billed less ($20+$30) variable costs). Putting it all Together Definition

42. What Is My Breakeven Point? = Fixed Costs Gross Profit per hour. Putting it all Together Breakeven Point in Units (Service Hours)

43. If rent, utilities and all other fixed costs are $10,000 and we use our $50.00 gross profit per hr example than our breakeven point is 200 hours of service at a $100 per hour selling price. After 200 hours of service we will start making a profit of $50 per hour. You see the gross profit contributes to paying the fixed costs. Once the fixed costs are paid, the gross profit contributes to bottom line profit. This is the reason some accountants call gross profit the contribution margin. Example Putting it all Together What Is My Breakeven Point?

44. $10,000 Fixed Costs $50.00 Per Hr Variable Costs 200 Hrs to Break Even = Putting it all Together What Is My Breakeven Point? Gross Margin Break-Even Point

47. Putting it all Together Real World Example So lets assume that our signature plan is Quarterly Pest Control that we’ve decided will be priced at $ 100 per hour figured: So we sell this Service for (4 X $100) = $400 per Annum 4 services at 45 minutes each = 3 Hour 2 call backs each at ½ hr = 1 Hour Total = 4 Hour

48. Putting it all Together Lets Assume that the quality of service , team work (efficiency) and retention caused us to spend additional call back hours at the original Program Selling Price of $400.00 as below

49. Putting it all Together Draw Your on Conclusions but let me leave you with this thought: If we assume one Truck/Technician can perform 120 hrs of on the job work per month

50. Putting it all Together Executing on the Plan! The key to maximizing Profit is through measurement, Benchmarking and defining improvement and then: Successful Execution by managing through Measurement Quality Service Customer Retention Teamwork Increased Bottom line So Profits are yielded by Quality Service , Customer Retention and Team Work

51. PMP WEALTHBUILDERS.COM Best Business Plan for PCO’s Who want to grow their business PCOBOOKKEEPERS.COM ACCOUNTANTS For Growing Pest Control Firms P.O. Box 810 Newton, NJ 07860 Phone: (877) 682-8118 Fax: 866-273-0101 Email: info@pcobookkeepers.com Join us now to grow your business