Rentokil Initial takes a similar approach. It
sees service quality as the main hook to retain
customers and is unashamed about being
more expensive than its competitors. “We
have got to be better than our competitors,
because to people in our industry, Rentokil
Initial is the model. So people who set out to
be like us, use us as the price benchmark,
against which they have to discount. The
reason our margins are higher is that our
prices are 15-20 per cent than those of our
competitors and our costs are 10 per cent
lower. We are not embarrassed by that!”