As a tow truck business owner, you have some decisions to make regarding what types of services you’re going to offer. We feel that before you make this decision you should check around town and see what your competition is doing. If there are 10 companies offering heavy duty towing services, and only 1 company offering medium duty heaving towing services, you should probably start offering the service that your competitors are not. However, there very well could be a reason that those other companies aren’t offering it because the demand isn’t there. This is why research is so important! Most likely you’ll see a lot of competitors offering regular car and small truck towing services but they probably aren’t offering the medium and heavy duty towing options. Before investing in any type of tow truck it’s EXTREMELY important to research your competition and what the market in your area is demanding.
Most tow truck companies offer roadside assistance services, but these aren’t necessarily the most profitably types of services to offer. It’s important when you’re starting out to understand how much time each type of service typically takes and how much you can charge for those services at a competitive rate. The great thing about towing vehicles is that the farther you tow, the more money you can typically charge. When it comes to roadside assistance, you’re probably going to have to charge a flat rate of about $50-$75 depending on the service, and you might find yourself taking the same amount of time to perform the job as it would have if you made $150 for that same amount of time towing a vehicle. These are important factors of your business and must be taken into careful consideration. Most towing companies offer all roadside assistance and towing services because each type of service is profitable. As we discussed, some services are more lucrative than others, but that’s just the way business works.
After you determine your services, what tow trucks you’re going to buy, and what equipment you’ll need to perform these jobs, you have to get insurance to cover your tow trucks and also the vehicles that you’re towing. The last thing you want is to be cruising down the road when all of a sudden the car on the back of your tow truck unlatches, falls off the truck, and causes a huge pile up resulting in hundreds of thousands of dollars! If you find yourself in this situation and you don’t have insurance, you’re going to be liable and can potentially lose your house or any other assets you have under your name because of it. In order to get licensed, bonded, and insured in your state, you have to tell them exactly what kinds of services you’ll be offering what what types of tow trucks you’ll be insuring.
These are some pretty basic and obvious points we talked about in this article, but you’d be surprised at the horror stores we’ve heard because of tow truck companies failing to do these simple tasks. We want our readers to be well prepared for everything that will happen throughout the course of their towing business so we don’t want to leave any details out that could be important to your business. We want to give a shout out to Poly’s Towing Phoenix that took our advice on the article we published last week about getting found in the map listings. Poly took our advice and has been doing more business this month than ever before! Please let us know if you have any success stories using the information we share in this blog.