Podcast Summary: The Brian Beers Show – Episode 298
Episode Title: This Weird Pest Control Business Prints Money
Release Date: November 24, 2025
Host: Brian Beers
Overview
In this episode, Brian Beers breaks down the financials and business model of a high-margin, recurring-revenue mosquito control franchise, drawing from actual profit and loss statements shared by a friend who owns two territories. Brian offers a candid evaluation of the profitability, seasonal nature, operational challenges, and his own approach to scaling this type of business. The episode is rich in actionable insights for entrepreneurs considering franchise investments, especially those interested in essential service businesses.
Key Discussion Points & Insights
The Mosquito Control Business Model
- Essential Service & Recurring Revenue:
- The business treats customers’ homes or businesses to eliminate mosquitoes, which are both a nuisance and a health hazard ([00:19]).
- It operates on a highly recurring revenue model: "80% or more of their customers stick from year to year." (Brian, [00:36])
- Customers typically pay around $200/month during the season.
- Nature of Operations:
- Low materials cost: solution sprayed around perimeters.
- Main direct cost is technician labor.
- Franchise model, exact brand not disclosed.
Actual Financials: Deep Dive
-
Top-Line Figures:
- $1.1 million in annual revenue from two territories ([01:00]).
- Direct materials and labor total about 25% COGS (Cost of Goods Sold), translating to a 75% gross margin ([02:00]).
- Technician Payroll: 21% (loaded, including payroll taxes)
- Comparison: “In my auto repair business...our parts cost about 25%. My labor...15%” ([02:10])
-
Major Expenses:
- Franchise Fees: “Almost 11% out the gate on every dollar is going to the franchisor…” (Brian, [03:06])
- Marketing Spend: Requires significant customer acquisition investment.
- Spent $90,000, exceeding minimum requirement of $60,000 for two territories ([03:32]).
- “If that customer is worth $5,000 to me over their lifetime...you would continue to do that all day long.” (Brian, [03:43])
- Management:
- Hires a $50,000/year manager who oversees day-to-day dispatch and customer issues ([04:17]).
- Franchise provides a call center for bookings and cancellations as part of the fee ([04:34]).
- Other Costs:
- Admin, payroll, vehicle expenses, insurance ($35,000), credit card fees, small warehouse rent, pro fees for accountant/lawyer ([04:57]).
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Bottom Line:
- Net Operating Income: $350,000/year (30% net margin) from $1.1 million revenue ([06:01]).
- “He’s doing 1.1 million and making $350,000 a year. Pretty good.” (Brian, [06:15])
- Net Operating Income: $350,000/year (30% net margin) from $1.1 million revenue ([06:01]).
Seasonality & Its Implications
- Operating Season:
- “It is only on season for April to October…off season from November to March.” ([06:43])
- Seasonal P&L:
- Profits $487,000 during the 6-month on-season, loses $121,000 in off-season due to ongoing fixed expenses ([07:12]).
- Expenses continue in off-season: manager salary, vehicle leases, insurance, rent, advertising, and bonuses ([07:34]).
- Cash Flow Management: “If you run a seasonal business, you have to be really good at managing that cash flow and know what that burn is going to be…” ([08:00])
- Owner Personality Fit:
- Suitability for seasonal business:
- “I don’t think I could own this business because I would go stir crazy in the off season…” (Brian, [08:37])
- Some diversify into Christmas lights or snow plowing during off months ([09:02]).
- Others enjoy the downtime: “They want to have six months of the year off…relax and take it easy.” ([09:18])
- Suitability for seasonal business:
- Labor Challenge:
- Rehiring staff every season is “one of the big challenges with it all.” ([09:56])
Scaling & Growth Strategies
- Scaling Up Revenue:
- “What if we could get this business to $2 million in revenue?” (Brian, [10:36])
- Variable vs. fixed costs as the business grows:
- Materials, labor, insurance, vehicles scale with revenue.
- Some costs (manager, admin, rent, pro fees) do not double—allowing improved margins as revenue increases ([11:01]).
- Projected at $2M Revenue:
- Net operating income: ~$730,000/year
- Net margin increases to 36% due to “diluting” fixed costs ([12:00])
- “If we can increase revenue, we dilute those costs, all that savings drops safe to the bottom line.” ([12:31])
- Maximizing Existing Territories:
- Max out market share within current territories before considering expansion ([13:05]).
- Additional managers or locations may be required at a larger scale.
- General Approach to Planning:
- Brian describes evaluating each line item on the P&L to determine which costs scale with revenue and which remain fixed ([13:46]).
Notable Quotes & Memorable Moments
-
On Customer Retention & Value:
"This business is recurring revenue. 80% or more of their customers stick from year to year. So it's the kind of business where you spend a lot of money to gain a customer, but once you have them, you can keep them for a very long time."
(Brian, [00:36]) -
On the Franchise Model’s Benefits & Costs:
"Almost 11% out the gate on every dollar is going to the franchisor...he bought this business a few years ago, never would have started it on his own. So, okay, price to pay."
(Brian, [03:06]) -
On Seasonality:
"It is only on season for April to October. So what's that, six months? And then he's off season from November to March...he actually makes $487,000 in those six months, but loses $121,000 during the off season."
(Brian, [06:43]) -
On Owner Fit:
"For me, like I don't think I could own this business because I would go stir crazy in the off season..."
(Brian, [08:37]) -
On Scaling:
"If I can get the sales or my buddy can get his sales to $2 million in revenue, then at the end of the day budget wise he should make close to $730,000. With an increased margin from 30% to 36%..."
(Brian, [12:00])
Important Timestamps
| Timestamp | Segment | |---------------|---------------------------------------------------------| | 00:00 | Introduction to mosquito control business, model basics | | 02:10 | Cost of goods and margins comparison | | 03:06 | Franchise fees and reasoning | | 03:32 | Customer acquisition costs and philosophy | | 04:17 | Management structure & franchise call center | | 06:01 | Net profit/margins overview | | 06:43 | Seasonality and operational breakdown | | 08:00 | Cash flow management in seasonal business | | 09:02 | Alternative off-season income streams | | 10:36 | Strategic thinking on scaling | | 12:00 | Projected financials at $2M revenue | | 13:46 | P&L planning, scaling practicalities |
Final Thoughts
Brian Beers provides a transparent, jargon-free walkthrough of both the strengths and unique challenges associated with owning a seasonal, service-based franchise. The episode is especially valuable for investors and entrepreneurs interested in franchising, recurring revenue models, and the realities of seasonal operations. Listeners gain not only a thorough breakdown of the mosquito control business but also actionable guidance on evaluating and planning franchise investments for scale.