The AOP Buyer Power Score is a content offering created in partnership with ProcurementIQ that rates the balance of power between buyers and sellers for a particular spend category
Today we are reviewing pest control services.
The Numbers
The Buyer Power Score for pest control services is 0.0 on a scale of -5 to 5, with -5 signifying low buyer power and 5 meaning high buyer power. The more power a buyer has the greater leverage they have to get lower prices and better contract terms.
The cost of fuel and the cost and availability of labor are both price drivers for pest control services. In addition, inflation is leading to higher costs for the chemicals and other materials required to provide this service.
Demand is expected to increase steadily over the next three years, increasing competition and prompting suppliers to raise their rates.
How to Use this Information
Pest control services include fumigation treatments and the extermination or removal of birds, rodents, mosquitoes, termites, and other insects or animals.
In addition to economic cost pressures, procurement should be aware of the impact that changing regulations may have on this service category. The interaction between federal and state regulators continues, especially with regard to pesticide regulations and the use of carbon monoxide devices for managing burrowing rodents. Procurement should ensure that all pest control service providers are knowledgeable about all of the regulations they must comply with in all company locations they will service.
Dig Deeper
We have partnered with ProcurementIQ to dig into their treasure trove of over 1,000 indirect category intelligence reports, with new insights every Friday. To dig deeper into the Pest Control Services report, click here.
