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How Do Successful Tow Companies Operate?

One-market

Published on October 3rd, 2018

Any tow company owner knows that the business cannot survive on just one source of revenue. This is because of the existing conditions in the towing business.

Towing companies must branch out and incorporate other sources of revenue in order to stay afloat. The company runs the risk of running out of business should their one line of business fail to bring in revenue.

In addition, this business is quite competitive. You could look up successful towing companies such as fidelitytowing for more insights.

1. They Avoid The One-market Gimmick

One-market

Oftentimes, tow companies are forced to make certain concessions in order to remain solvent. For instance, in order to have the privilege of being the solo service provider with a number of motor clubs, they may have to agree to certain terms.

Some of these terms include:

  • Must be available 24 hours 7 days a week without any premiums for after-hours calls
  • Accept lower rates than they would normally charge
  • Maintain a certain level of call-acceptance

The towing company will agree to these terms because they expect to have enough business to outrun the costs of servicing the members of the club.

However, should a primary provider be unavailable to take a call from the motor club, the club will immediately source for another towing company outside of the network.

This most recent provider will receive better payment terms than the contracted one. It may seem like a lucrative deal because of the numbers, but good business people avoid situations where conditions are dictated to them.You are better off with a wide and varied client base.

 

2. They Avoid Distractions

distraction

Many unsuccessful tow companies always want what is on the other side of the fence. Whereas many business owners started their own businesses because they were not fulfilled in the workplace, this restlessness that causes you to look out for the next big thing is not always to your advantage.

Some business people will argue that it is that restless quality that has got them where they are. However, what they fail to factor in is that they will probably always be on the prowl for the next big thing and they may, therefore, let the present one fall apart.

If the next big thing is not remotely related to your towing venture, maybe you should give it a rest and build the towing business first.

 

3. They Incorporate Related Services

Incorporate

There is more to the towing business than merely tending to breakdowns and accidents. There are other services that motorists may require from a towing service. Vehicles often stall on the road because they ran out of gas and the next gas station is a long way off.

Towing businesses could offer this as a service; deliver gas to a stalled vehicle and charge a reasonable fee for the service. Professional mechanical services are another area that many towing businesses have taken up.

Instead of towing your customer to the next available garage for minimal checks and repairs, you could have professionals on board to take care of the small issues. That gives you an edge over the competition.

If you want to make your towing company be the first one that motorists in trouble think about, much like fidelitytowing, you have to incorporate good customer service with other relevant services that stranded motorists may be in need of, then your business will be a success.