Estimated reading time: 3 minutes
The United States automotive towing industry represents billions in annual revenues. As the population increases and consumers purchase more vehicles, this specialized industry will continue to do well. So, what can you do to set your towing business apart from the competition and maintain positive year-over-year growth? This Balboa Capital blog post has the answer. It explains how to run a profitable towing business.
Towing industry overview.
IBISWorld reported that the automotive towing industry is growing at an annual rate of 2.6 percent. You can learn more facts and figures in our towing industry infographic. However, one thing that might cause the industry to experience slower business is technology.
Today’s cars are more efficient than ever and experience fewer mechanical problems. That said, towing businesses will continue to be called upon to transport automobiles involved in accidents and tow illegally parked vehicles.
Set your towing business apart.
Your automotive towing business needs to be different to stand out from the competition. This starts by determining the strengths of your towing company and then cost-effectively promoting them.
All essential attributes are things like years of experience, level of customer service, number of tow trucks in your fleet, and types of vehicles you can tow. Include relevant information about your towing business in your marketing efforts, such as your website, business cards, and flyers.
Expand your capabilities.
Expanding your capabilities can open the door to more business and increase revenue. For example, you may want to tow boats, motorcycles, and specialty vehicles in addition to passenger cars. Of course, you need to have a tow truck to transport them.
Network with local businesses.
Business networking is a fantastic way to meet potential referral sources for your towing business because it is highly personal. Make time to meet with auto repair businesses, auto dealers, apartment managers, and property managers, and do not forget to leave your business cards. In addition, send them a nice “thank you” email or call them on the phone a few days after your meeting.
Get a quality tow truck.
The most important part of your business is your tow truck. Without a top-quality tow truck in excellent running condition, your business might face problems. If your tow truck breaks down and constantly needs maintenance, you lose time and money, not to mention customers and potential referrals.
Consider tow truck financing to get a new or used tow truck without using up all your capital. Financing is a money-saving means of acquiring the vehicle you need for a predictable monthly payment over a specific period.
Balboa Capital, a Division of Ameris Bank, is not affiliated with nor endorses IBISWorld. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.