Understanding the concept of what it takes to run a 24/7/365 towing and recovery business is not easy for many people. The normal day-to-day business aspect is similar to other businesses — employees, payroll, accounts payable and receivable, etc., — but the difference is what else it takes to be in this industry.
Towing companies are on call all the time and our services are needed most often in trying and difficult situations.
I had an employee who told me he was going to start his own towing business. He believed he would contract with a motor club and get “X” amount of calls a day and that would bring in “X” amount of money.
When I asked him who was going to answer the phone when he was out on a call, he said he would. Hmmm … okay. Then I asked him what he thought his profit would be after he paid the truck loan, insurance, fuel and maintenance? After that, I asked him if he was sick or wanted to go on vacation, who was gong to run the calls? Then came the question: Did you talk this over with your wife? Letting her know you wouldn’t have time to do much of anything as far as family time?
I really didn’t want to discourage him, I just wanted to point that there’s more than just going on calls and collecting payment.
Over the years, I have gotten this attitude from some customers as well. When you advise them of the cost of a service they say, “Wow, I should start a towing company.”
My response is: “Sold!”