bed bug business

Bed Bug BusinessWhat is the Opportunity

• Experience• 50+ Year Engineering Company US/Canada• Proven Certified Technologies (ANSI/CSA

Standard Boards)• 30,000+ Systems Throughout North America• 3+ Billion Sq Ft to +/- 4°F• 5 Years RxHeat® Leadership• Restoration and Pest Control Market

Who Are We?

• RxProtect® Launch – 2011• Fully Licensed Pest Control Operator• Columbus, OH Pilot Site• 3-4 Full Time Crews• Surge Capacity to 10 Crews• 10 Heat Treatment Systems• Full Time Sales• Full time Operations Manager

Who Are We?

Answer 3 Primary Questions• What is the size of bed bug opportunity?• Why Heat Treatment?• Why are successful restoration contractors

positioned to capitalize?• Two Business Options• Sub Contracting• Stand Alone Pest Control Company

Frequency Increasing Worldwide

Source: Bugs Without Borders – Potter, et. Al

Showing Up Everywhere• Apartments/Condos (89%)• Single Family Homes (88%)• Hotels/Motels (67%)• College Dormitories (35%)• Homeless Shelters (31%)• Nursing Homes (24%)• Office Buildings (17%)• Hospitals (12%)• Primary/Secondary Schools (10%)

Source: Bugs Without Borders – Potter, et. Al

Source: Bugs Without Borders – Potter, et. Al

Key Factors Driving Growth• Current Solutions are Failing Miserably• Litigation & Legislation• HUD Notice H 2011-20 – Guidance for Bed

Bug Control• Education (Media Attention, Task force

formation, etc.)

Why Heat Treatment is Winning• Penetrating Power (Walls/Attic/Mattress)• No Resistivity• Fumigation’s effectiveness without the safety

concerns• One day process• Less Reliant on Preparation• Kills all life cycles of bed bugs everywhere

inside of a structure• Whole Structure or Single Apartment

RxHeatTreat™• One Day Eradication• Certified Systems• Safe & Effective

Feeding a “Rearing Jar”

RxHeatTreat™ (Large Scale)• 70 Units• Attached Office

Space• 18000 sq ft• Canine Inspection

• 75% infestation level

• Total Building Heat Fumigation

• 2.5 Day Project

Technology SolutionsSmall ScaleLarge Scale

Large Scale Gas-fired technologies• Raise temperature quickly• Flexibility for a wide range

of structures • Scalable• Quick Set Up• Trained Personnel

Why Restoration Contractors

Restoration Contractors

Bed Bug Heat

Treatment

Pest Control

Operators

Successful Restoration Contractors Know• Crew Routing• Project Management• People Management• Equipment Deployment• Site Monitoring (Temperature, fuel, etc.)• Regulatory Compliance

• Client Base overlap (Commercial and Residential Client Base)

Client Base overlap• Apartments/Condos (89%)• Single Family Homes (88%)• Hotels/Motels (67%)• College Dormitories (35%)• Homeless Shelters (31%)• Nursing Homes (24%)• Office Buildings (17%)• Hospitals (12%)• Primary/Secondary Schools (10%)

Source: Bugs Without Borders – Potter, et. Al

Key Questions• Prime or Sub Contractor?• Current Company or New Corporation?• Investment (Capital and Leadership)

Prime Contractor• Licensed Pest Control Operator

• Hire or Train• New Business Start Up

• Not a line extension

Sub Contractor• Market service to existing Pest Control

Operators• 15-20% mark-up for PCO• Surge capacity (equipment and personnel)

• Lower capital investment• Lower risk

Prime Contractor• Prime Contractor

• Initial Investment Breakdown• $150K to $275K

• Sub-Contractor Model• Initial Investment Breakdown• $50K to $100K

QuestionsContact Information

Marc Braun(636) 898-3347mbraun@rxprotect.com

Randy Hove(314) 614-8940franchise@rxprotect.com