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Bed Bug Business. What is the Opportunity. Who Are We?. 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
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Bed Bug Business What is the Opportunity
Who Are We? • 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
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
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
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 Solutions • Large Scale • Small Scale
Large Scale Gas-fired technologies • Raise temperature quickly • Flexibility for a wide range of structures • Scalable • Quick Set Up • Trained Personnel
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
Questions Contact Information Marc Braun (636) 898-3347 mbraun@rxprotect.com Randy Hove (314) 614-8940 franchise@rxprotect.com