The US 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 help drive profits to your towing business? This Balboa Capital blog post has some real-world tips you might want to consider. But first, here is an overview of the towing industry.
Towing industry overview
Currently there are close to 9,000 towing businesses in the US that employ over 60,000 workers. The automotive towing industry is growing at an annual rate of approximately 3%. One thing that might cause the industry to experience slower business is technology. Today’s cars are more efficient than ever before, and therefore experience less mechanical problems. That being said, towing companies will continue to be called upon to transport automobiles that are involved in accidents, and to tow illegally parked vehicles.
Set your towing business apart
Your automotive towing business needs to be different in order to stand out from the competition. This starts by determining the strengths of your towing business, and then promoting them in a cost-effective manner. Things like years of experience, level of customer service, number of tow trucks in your fleet, and types of vehicles you can tow are all important attributes. Include relevant information about your company in all of your marketing efforts, such as your website, business cards, and flyers.
Expand your capabilities
You can open the door to more business and increased revenue by expanding your capabilities. 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 that can tow these various types of vehicles.
Network with local businesses
Business networking is a fantastic way to meet potential customers for your towing business because it’s highly personal. Make time to meet with auto repair businesses, auto dealers, apartment managers and property managers and don’t forget to leave your business cards. Plus, send them a nice “thank you” email or call them on the phone a few days after your meeting.
Get a high-quality tow truck
The most important part of your business is your tow truck. Without a top-quality tow truck that is in excellent running condition, your business might be presented with problems. If your tow truck breaks down and constantly needs maintenance, you’re losing time and money, not to mention customers and potential referrals. To get a new or used tow truck without using up all of your capital, consider tow truck leasing. This is a money-saving means of acquiring the vehicle you need for a predictable monthly payment over a specific time frame.