Home Services and Google Reviews

by a searcher

2 weeks ago

Hypothetically, let's say you are interested in a pest control company doing $2mm revenues $500k SDE.   

On google, it has 50 reviews at a###-###-#### How does that effect your buying decision/valuation?

How about 500 reviews at a 3.5?

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intermediary from Rensselaer Polytechnic Institute

Dan - I would look deeper at the 50 / 3.2 Is it skewed by a handful of negative reviews or is 3.2 representative of the whole population...Small sample size can be effected by a relatively small of reviews. The one with the larger sample size wouldn't be swayed by a few negatives. The 3.5 figure is probably representative of a so-so service / customer service level.

As a buyer, you should be on the lookout for improvement opportunities. If you are strong in the areas identified in the reviews as weaknesses, it could be a good value for you.

2 weeks ago | like reply | 0 likes

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