Question-and-Answer Session
Operator
Thank you, sir. We will now begin the question-and-answer session. (Operator Instructions). And our first question comes from the line of Clinton Fendley with Davenport. Please go ahead.
Clinton Fendley – Davenport & Company Llc
Good morning Gary and Harry, a nice quarter.
Harry J. Cynkus
Thank you.
Gary W. Rollins
Thank you.
Clinton Fendley – Davenport & Company Llc
Gary, I wondered a typical Q2 is the time that you guys evaluate your pricing and any potential increases. I wondered if you could update us on your expectations for this year in light of the challenging market environment?
Gary W. Rollins
Well, we have been doing testing as far as our annual residential price increase, and commercial price increases and we’ve confirmed that we have opportunities in that regard. We are very pleased with the results of our testing. But felt like we really needed to do that, as you mentioned in light of the economic situation. And we will be initiating those this coming month. And we are looking forward to the successful effort I can’t really get into more details, for obvious reasons about exactly what our strategies are, but we were pleased with the results of our test.
Clinton Fendley – Davenport & Company Llc
Okay, thank you. And any update on the just the competitive environment out there, and what you are seeing from both some of the smaller as well as our larger competitors in the market.
Gary W. Rollins
Well I think it, the smaller competitors are certainly suffering, they don’t have the quite, they don’t have the diversification that we have the different markets that we are in. But, kind of the industry, information just indicates that that the industry is scrambling. I think the fact that when gas went up, as high as it did, it was really dramatic to the competitors. And we’re very hopeful that we will see an increase of people that are interested in selling their business we’ve seen some uptick, but today we don’t have anything to show for it. I think that, people are accounted in a cash 22 their expenses are not going down they really know what they start discounting and I guess that’s the natural tendency, when you are not getting that many phone calls to cut your prices, but, they don’t have any other expenses with the exception of gasoline that’s gone down. So, they are really have a on the horns of a dilemma.
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