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SMALL FLY MARKET

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» 2020 Market Forecast

» Smart Control Strategies

» Selling Small Fly Services

» Training Your Team to be Detectives

» Exclusive Market Research

INSIDE:

State of theSPONSORED CONTENT

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SMALL FLY MARKET

State of the

2020 State of the Small Fly Market Report2

SMALL FLY, BIG DEAL

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SPersistent little buggers — small flies are the ones in a buffet line that keep going back for more until the chafing dishes are scraped empty and there’s nothing left to eat. They can be low-profile characters, hanging out behind the scenes, hunkering down in low grout lines and deep inside drains, hiding out underneath kitchen equipment and inside broken pipes beneath the foundation.

It takes an investigator to identify the source of a small fly problem. And, doing so requires time, knowledge and tools. For these reasons, small flies can be some of the most frustrating pests to treat. “The key is customer education — there is no magic spray,” says Jeffery Preece, a board certified entomologist and technical director of ZipZap Termite & Pest Control in Pleasant Valley, Mo.

PCT’S STATE OF THE SMALL FLY MARKET REPORT REVEALS THAT THIS SECTOR IS GROWING FOR SOME BUSINESSES. THE KEY IS TO

DEVELOP A PARTNERSHIP WITH THE CLIENT AND GET TO THE ROOT OF THE ISSUE SO THE SERVICE CAN BE PROFITABLE.

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2020 State of the Small Fly Market Report 3

SMALL FLY MARKET

State of the

Most PMPs treat for small flies, with 77 percent of respondents to the 2020 PCT State of the Small Fly Market survey saying they offer the service. But, for most, small fly is a relatively modest part of their overall business. Twenty-six percent said the service represents 3 to 4 percent of their revenue, while 42 percent report that small fly control accounts for only 1 to 2 percent of their work.

In commercial kitchens, small flies are arguably the biggest pest headache.

“I have a handful of bars and restaurants I service, and small fly is why they contacted us for service,” says Carl Braun, president, Quality Pest Control, Omaha, Neb.

Braun sees small fly as a niche that could separate his business from competitors, though he’s not specifically marketing the service now. “I’m planning to grow the commercial side of the business and [small fly] is something I will train my sales team to sell,” he says, noting that health and safety creates urgency among commercial kitchen/food service clients. “There’s a potential to have your business shut down.”

TIME AND MONEY. For the most part, pest management professionals who offer small fly control say the service is flat, with 70 percent noting no change in revenue year over year. However, 27 percent saw an increase in the number of small fly jobs during that time.

“Small fly is definitely on my radar as an area I want to develop more,” says Josh Fleenor, president, Pest Pros Pest Solutions, Sacramento, Calif.

Fleenor says smally fly product costs are low compared to the cost of client educa-tion. “I have seen a lot of companies do the opposite where their method of control is more material, more material,” he relates. “It’s difficult to be profitable when you are dumping loads of material, and then you lose clients because you don’t get results.”

On the other hand, time can also eat away at profit. “I have mixed feelings about profitability,” says Joe Cantu, vice president and director of operations, The Bug Master, Austin, Texas. “I think the service can be very

profitable as long as there is cooperation with the client.”

Cantu says newer restaurant and com-mercial locations tend to be more profitable accounts because aging infrastructure does not have to be addressed. “You can be very proactive,” he says.

Fleenor adds, “We’ve had restaurant chains where the same small fly issue happens in the same areas, so we can knock that out pretty quickly.”

SHUT DOWN AND CLEAN UP. If PMPs could shut down commercial facilities to thoroughly clean and treat the sites, small flies would be less of a problem. Basically, that’s what’s happened amid the COVID-19 out-break, when so many non-essential businesses across the country were closed to the public.

“We’ve had some clients put service on hold, but a lot of people are taking advantage of this time to do some remodeling, which is huge for small fly control,” Fleenor says. “That can really help when you have outdated kitchens that are not built for equipment to be moved out for cleaning, there is old tile and low grout lines, and cracks and crevices that haven’t been cleaned in 30 years.”

Especially in 24/7 facilities, businesses can use this downtime to address structural issues that feed into small fly problems. Because when the “always open” signs are back up, finding time to properly clean, treat drains and control small flies is a challenge. “Some-times, we have asked a restaurant to lock up for an hour so we can get an issue under control,” Preece says, adding that small fly work tends to be a year-round job in these environments.

“We hope our customers are keeping some employ-ees on and paying them to clean now,” Preece adds. “With small flies, the prob-lem is usually sanitation.” MO

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We’ve had some clients put service on hold, but

a lot of people are taking advantage of this time

to do some remodeling, which is huge for small

fly control. That can really help when you

have outdated kitchens that are not built for

equipment to be moved out for cleaning, there

is old tile and low grout lines, and cracks and crevices that haven’t

been cleaned in 30 years.”

— JOSH FLEENOR, president, Pest Pros

Pest Solutions, Sacramento, Calif.

Moth fly

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2020 State of the Small Fly Market Report4

SMALL FLY MARKET

State of the

APPETITE FOR GROWTH. Overall, PCT’s Small Fly Survey results indicate that small fly as a commercial service is mostly steady and somewhat on the rise, depending on a PMP’s business mix and sales focus. For those expand-ing their commercial service and mar-keting to restaurants or commercial kitchens, small fly service is a foot in the door, with summer (43 percent) being the busiest season. Only 34 per-cent of respondents said the residential market delivered most of their small fly revenue — and the owners we spoke to indicated a much smaller amount of business in the homeowner sector.

Anthony DeLisio of Insector In-spector in Highland Heights, Ohio, reports that about 20 percent of his business is small fly, and 5 percent of that is residential.

Fleenor also says his residential small fly business is “very minimal.” Preece adds, “Our residential customers don’t deal with it too often.” And when they do, the issue is generally fungus gnats, an occasional fruit fly infestation or moth flies due to broken pipes under the floors.

Control methods are centered on customer education and sanitation—and when clients comply, the service can be profitable. And like other pest control services, small fly control re-quires an investigative eye beyond what a general pest visit might involve. “Like other aspects of the industry, you have to be someone who is willing to hunt and find the source of the problem to be successful,” says Kevin Lemasters, an associate certified entomologist and president of EnviroPest, with locations throughout Colorado.

From smart control strategies to fast facts about small flies, PCT’s State of the Small Fly Market report addresses the real-world issues pest management professionals are dealing with in regards to this service offering. Read on for exclusive data and market analysis.

REVENUE ON THE RISE

What percentage of your location's overall revenue was generated by small

fly control services? (Mean)

THREE-FOURTHS OFFERING SMALL FLY SERVICES

Does your company location offer small fly control services?

Source: Readex Research; Number of Respondents: 195

77% 23%yes no

PMPs OPTIMISTIC ABOUT SERVICE OFFERING

How do you expect your location’s revenue generated from its small fly control services to change in the next year?

3.5% 3.6%

4.1%

4.5%

2017 2018 2019 2020

Source: Readex Research; Number of 2020 Respondents: 195

increase

remain the same

decrease

no answer

Source: Readex Research; Number of 2020 Respondents: 151

1%

25%

70%

4%

SUMMER = BUSIEST SEASON

What season tends to be the busiest for your location providing small fly control services?

Source: Readex Research; Number of Respondents: 151

43%SUMMER

SPRING21%

FALL9%

WINTER1%

NO SEASONAL DIFFERENCE26%

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increased

Source: Readex Research; Number of respondents: 151

CHANGE IN NUMBER OF JOBS

Compared with 2018, how did the number of small fly jobs in your market area change in 2019? 27%

70%

3% 1%

remained the same

decreased no answer

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SMALL FLY MARKET

State of the

A PROFITABLE PACKAGE

HOW MUCH DO YOU CHARGE?

Pest control companies that charge separately for small fly control bill an average of $137 per treatment.

“No one wants to pay for a service unless they are suffering from the problem. So, we offer small fly control as an add-on.”

— JIM SAITMAN, OPERATIONS MANAGER, MADCO PEST-A-SIDE

“We try to sell the service upfront but it’s very difficult because half of the year, flies don’t present much of a problem. But we have an informative pamphlet that we give commercial customers, restaurants in particular. Small flies will be a part of their future sooner or later — it’s not a matter of if but when. When flies do show up, then they start asking us to add-on the service.” — DAVE MASCHKA, DAVE MASCHKA PEST CONTROL SERVICE

ABOUT HALF OF RESPONDENTS to PCT’s State of the Small Fly Market survey say they charge separately for small fly control — and the other half includes small fly as part of their general pest control services. Here, pest management professionals weigh in about how they structure the service.

“Small fly is just part of our service. Could we sell it as an add-on? Sure. But small fly issues come and go all the time so we always include it for our bar and restaurant accounts because we know at some point they will have the problem. If the small fly issue is excessive and we need to step up the service and come in weekly vs. monthly, then we might charge extra. But because we know [small fly] will occur, if we omitted it from our service our customers would go somewhere else.” — JEFFERY PREECE, BOARD CERTIFIED ENTOMOLOGIST, TECHNICAL DIRECTOR,

ZIPZAP TERMITE & PEST CONTROL

SMALL FLY INCLUDED

THE CASE FOR A LA CARTE

52020 State of the Small Fly Market Report

48% 50% 2%yes no no answer

IN OR OUT?

Are small flies included as part of your general pest control (GPC) service?

Source: Readex Research; Number of Respondents: 151

Source: Readex Research; Number of Respondents: 75 (those who charge separate from GPC)

$300 or more $200 - $299$150 - $199$100 - $149

$50 - $99less than $50

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2020 State of the Small Fly Market Report8

SMALL FLY MARKET

State of the

Heading into Fourth of July weekend, Emilio Polce, president of EcoChoice in Vernon, Conn., called a country club client to check in. “Everything OK?” he asked, reminding the restaurant manager that he’d be off work during the upcoming holiday.

That weekend, the client called anyway. “He is just two miles up the road, so I went there — and I was horrified,” Polce says. “The bar area

was not cleaned properly, and there were fruit flies everywhere. They were clinging to the soffit above the bar, and I pointed out the recessed lighting cans and spillage on the flat screen televisions.”

During the conversation, Polce picked up a rag and never stopped wiping. “It was gross,” he says. “I rinsed the rag twice after cleaning the soffit, which took me five minutes.”

The bar manager’s reaction? “His jaw dropped.” Next, Polce led the manager to a bar seat cushion. He pointed to the crease where the seat meets the back —

and it was stuffed with crumbs and dried, sweet liquids from soda and beer. “His jaw dropped again,” he says.Polce designed a sanitation checklist for the country club’s restaurant/bar — a practice he knows well as a former

manager of a Marriott lounge. “Most of the restaurants and bars have small flies as their main issue,” he says.

CONTROL STRATEGIES

Smart

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2020 State of the Small Fly Market Report 9

LARGEST PERCENTAGE OF SERVICE CALLS

What small fly represented the largest percentage of your location’s service calls in the past year?

Regular, thorough clean-ups are critical for managing small flies. Sanitation is the core of effective control.

Polce teaches managers and employees how to properly clean the drains where small flies forage for food. He uses a foamer/mister/sprayer with a built-in compressor. “The foam under pressure goes into the floor drains and pushes up through the P-trap,” he explains. “A lot of times you can’t get under there where the breeding is happening.”

His technicians put a biodegradation product to work on floors and rely on biodrain gels to break down the organic material that flies feed on. In some locations, he’ll install fly lights to control fruit and drain flies that tend to perch on the walls. But ultimately, control is about “simple sanitation,” he says.

Joe Cantu, vice president of operations, The Bug Master, Austin, Texas, uses quick knock-down aerosols to manage flying insects, and drain pucks that insert into a mesh bag that hangs in the drain. “As water enters the drain, it releases material and continues to clean,” he explains.

Most of all, effective control requires changing customers’ behav-iors, Cantu says. “Even the best products out there with the longest residual won’t work if the drains remain dirty and there is a buildup of material under kitchen equipment,” he says. “That combats the products and we don’t get as long of a (product) lifespan as we would with proper sanitation.”

UNDERCOVER I.D. Treating small flies requires an investigative eye. “It calls for more inspection — you have to think outside the box,” says Jim Saitman, operations manager, MadCo Pest-a-Side, Wildomar, Calif. He describes a strip mall scenario where stores share plumbing lines. A retailer could end up with a drain fly problem if the plumbing is connected to an adjacent restaurant. “You can throw a scope down the drain and your side is clean — but on the other side, a restaurant is dumping food waste and flies are breeding and coming up through your drain,” he says.

Spilled soda and beer are just one reason why restaurants and bars have small flies as their main pest issue.

Drain fly

ALL PROBLEMATIC FLIES

What small flies tend to be problematic in your market area?

drain

/mot

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fruit f

lies

fung

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r

73% 72%

39% 37%

4%

Source: Readex Research; Number of Respondents: 151; Respondents could select more than one answer

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Source: Readex Research; Number of Respondents: 151

fruit f

lies

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Fruit fly

45%

33%

11% 9%2%

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2020 State of the Small Fly Market Report10

SMALL FLY MARKET

State of the

Another scenario: A hospital account had a pervasive small fly problem that felt out of control. “After doing everything possible, the drain pipes were cracked and there was a cavity under the building,” Saitman says.

Eight million dollars later, the three- story hospital was excavated and lifted 4 feet up to address the cracked pipe, rerun the drains, remove the soil and bring in new, clean soil. “It was either that or shut down,” Saitman says.

Kevin Lemasters confronted a similar issue at a hospital account. “Phorid flies kept showing up and we didn’t notice any drains close to that room,” says the asso-ciate certified entomologist and president of EnviroPest in Colorado.

After about six months of trying every treatment possible, Lemasters says the team discovered a cracked pipe under the flooring. “Once they opened up the floor and corrected the pipe issue and got rid of the moisture in the soil, the problem went away,” he says. “We suspected that and talked about it, but we weren’t quite looking in the right places to get it figured out at first.”

Phorid flies are often misidentified, points out Josh Fleenor, president, Pest Pros Pest Solutions, Sacramento, Calif. “People focus so much on fruit flies when they can really save headaches by properly identifying the pest,” he says. “I can’t tell you how many accounts I’ve been called into and they’ve had three other companies out there, and we’ll scope their plumbing lines and identify a crack that is dripping into a subsurface area, creating a pocket where phorid flies thrive and come up to the surface a few at a time. If you don’t identify that, you’ll go nuts trying to control the flies with materials.”

EFFECTIVE TREATMENT. Pest Pros focuses its small fly control on addressing larvae. “We’ll knock down adults with a standard material by getting a bio-gel product into the drains and removing grime,” Fleenor says.

He believes that insect growth regula-tors (IGRs) are underutilized in the small

fly sector. “These have a more proactive, long-term approach to control as opposed to just dealing with what’s right there,” Fleenor says. “A lot of technicians see a small fly, kill the small fly and think the small fly problem is solved, but it goes deeper than that.”

By using IGRs in cracks and crevices close to target areas by decaying organic matter, Fleenor says larvae development is restricted so the flies cannot lay eggs again. “If we can put a huge dent in the egg population, we are going to put a massive dent in the adult population,” he says.

PMPs have a wide range of tools in their toolbox for small flies. Fleenor explains that bio-gels are effective because when scrubbed into a drain with a pipe brush, “It will break up debris on the inner rip of the piping,” he says. Foaming materials penetrate drains more deeply and address fermenting material where small flies lay eggs and develop into larvae — before they mature and eventually fly out of the drain.

Jeffery Preece turns to microbes for restaurant and bar accounts. Sanitizers, on the other hand, only clean the surface. “We have to address the [sludge] that small flies breed in,” says the technical director of ZipZap Termite & Pest Control in Pleasant Valley, Mo.

And when that happens effectively, the company can reduce or eliminate callbacks. Preece says, “If we communicate what needs to be done to prevent small flies, we typically do not have callbacks because customers understand the problem.”

SMALL FLYFast Facts

breed in standing water that contains enough organic material. This is a reason they are most commonly associated with drains.

• Fruit fly traps spaced in a grid pattern can be used to better pinpoint the source(s) of fruit flies in an area. Traps capturing more flies will be closer to the breeding source.

• Cheese skippers breed in cheeses and cured meats and most often will be found in facilities that process or store such products.

• Traps with glue can be lightly sprayed with apple cider vinegar as an

attractant. Such traps placed close to breeding sites can help remove adult flies while breeding sites are being cleaned up.

• Fungus gnats are almost always will be associated with the soil in indoor planters or atriums. On occasion, infestations may be associated with a type of water leak within walls or ceiling voids.

• “Bait stations” can be made from card stock, wood, or similar materials and treated with a spray-on or paint-on fly bait. Follow label directions and hang/mount these stations near fly breeding sources.

• Fruit fly larvae feed on yeasts that grow in freshly decaying organic matter, in particular ripened fruits and vegetables.

• Inspections for small flies should target sites where moist organic matter can be found, including trash receptacles, cracks at floor level and floor drains.

• Phorid flies will be found breeding in the greatest number of different types of sites, including wherever fruit flies will breed, dead animals, drains and garbage disposals.

• When checking for breeding sites, use a knife, putty knife or small spatula to scrape out organic matter and check it for fly larvae.

• Moth flies prefer aqueous environments and can

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2020 State of the Small Fly Market Report 11

SMALL FLY MARKET

State of the

“Unless you do a lot of small fly work, it’s one of those things that is easily overlooked in the training process,” says Kevin Lemasters, associate certified entomologist and president of EnviroPest in Colorado.

Lemasters figures that up to one-half of his technicians have never confronted a small fly problem on the job, since the service is mostly a

problem that commercial customers deal with and his business is primarily residential. “When technicians are not seeing the issue or dealing with it, we can talk about it in a meeting or go over modules in new-hire training, but it’s not the same as exercising it in the field.”

Small fly control calls for an investigative mindset. Hands-on training should involve proper small fly identification and figuring out the root of the infestation. Because small flies fester deep inside drains, underneath floor surfaces, in pipes and underneath kitchen equipment, dealing with a problem can be a dirty job.

“You have to understand the bug, the biology and the treatment,” says Jim Saitman, operations manager, MadCo Pest-a-Side, Wildomar, Calif.

The PCT 2020 State of the Small Fly Market survey was sponsored by Nisus Corp. and compiled by Readex Research, a privately held research firm in Stillwater, Minn.

MARKET GENERATING MOST REVENUE

What small fly control market generated the most revenue for your location?Source: Readex Research; Number of Respondents: 151

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TRAININGTHE TEAMSaitman encourages his team to think

outside of the box when managing small flies. “Be a problem-solver — that’s the real key,” he says. “And I always tell my guys, if you have a problem treating a pest, don’t keep it to yourself. Ask for help, do some research.”

He emphasizes that small fly control is not “production work” and requires more time, understanding and knowledge than most other pest problems. “It’s about understanding their behavior and biolo-gy and tracing the problem to its root,” Saitman says.

Technicians at ZipZap perform all ser-vices, so everyone needs a working knowl-edge of how to identify and treat small flies, Preece says. “Training is ongoing,” he adds, noting that small fly is not a “spray-and-go” service. “It takes experience and knowing what to look for.”

ABOUT THIS SURVEYA sample of 4,438 PCO owners, operators,

executives and technical directors was systemat-ically selected from the PCT database. Data was collected from 195 respondents — a 4 percent response rate — via online survey from April 16-27.

The margin of error for percentages based on 151 respondents whose location offers small fly control services is plus or minus 7.9 percentage points at the 95 percent confidence level. Charts may not add up to 100 percent due to rounding.

3%

63%

OTHER

COMMERCIAL MARKET

34%RESIDENTIAL MARKET

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