Are Tow Truck Companies Profitable?

Written by: Towing El Paso

 

Buy a truck, wait for someone to call you for a towing task and make your profit. That is the common thought for most aspiring tow truck company investors in the United States. However, the dynamics for starting such a company in the country are much more diverse than that. When you have your main aim for investment which is profit-making, it is imperative that you concentrate on it. You probably do not know how a tow truck company makes its profit, or what the most favorable base for operation is, and the pros and cons of the towing business. This article outlines all the profitable dynamics around the latter.

 

 

Profitability of Tow Truck Companies

 

In the United States, towing is a great business venture. Based on the available statistics, towing is very

profitable. According to IBIS world on their website, the U.S. generated approximately $4.87 billion in revenues in the year 2010 which was a growth from the previous year – a majority being generated from a car and light truck towing. Average annual growth of 1.1% has been depicted and could get better over the years until 2020. As the economy continues to grow, roads become crowded. The more cars on the road, there are higher chances of vehicle issues that require towing. In the automobile industry, $0.16 is spent on capital for every dollar spent on labor by operators making it medium level capital intensity.

 

The profitability of the business can also be increased by reducing the labor functions which you can achieve through getting: efficient communications equipment, new vehicles, computer-aided booking, and route planning facilities. However, you cannot reduce the intensity of labor for driving and maintenance tasks.

 

 

The Market Choice on Profitability

 

Nationwide, those who need the towing services by tow truck companies demographically cut across the private sector, households, public sector, and communities. Two truck companies could best favor the following people and organizations:

 

  • Celebrities
  • Corporate organizations
  • Public facilities and institutions
  • Business companies
  • Event planners
  • Estate agencies and communities
  • Sport organizations
  • Religious centers

 

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5 safety Tips for car towing

tow

Written by:  Towing Newport News VA

Towing can be a little bit intimidating, particularly to inexperienced first-time drivers. For safe and accident-free towing, drivers must learn and be aware of the various safety practices in car towing. Cases of damaged cars while being dragged are rampant and the liability can either be for the towing company or the car owner. This can affect insurance coverage, rates and other legal. Cars with automatic transmission are the worst hit. To avoid damages and other potential hazards, below are the 5 safety tips for car towing.

1. Stay Within Your Limits

Each RV has its gross vehicle weight rating (GVWR). This is the weight set by your RV automaker. It takes into account the base curb weight of your RV vehicle and the weight of the cargo you are towing. If you overload your RV beyond the recommended GVWR, it becomes too heavy, and the brakes might fail. The suspension components can also break, become ineffective and even generate heat and blow out. In case of an overload, you should make adjustments on time where necessary.

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How Do Towing Companies Make Money?

With the growth of technology and innovation of various types of vehicles, almost everyone today owns a car. When you buy a car, you are advised on regular car checkups with your trusted Repair and Check up company. However, cars are mechanical objects that are prone to breakdowns or crash at odd hours and places. This has led to an increase in towing companies. But before you think of investing in the towing business, is it a profitable venture?

1. Advertising and Marketing.

For any business to make profits, you must have a constant flow of clients/customers. “One of the key ways to get customers is by making advertisements of all sorts on your business to attract prospective customers,” says Towing Virginia Beach. Towing companies make several types of advertisement from business and rack card, posters, newspaper ads on local newspaper and burners along highways. These forms of advertisements help to tow companies to make their services public. Some towing companies are also going digital by creating ads online or on social media platforms such as Facebook.

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Are Towing Companies Responsible For Damaging Your Vehicle?

car damage

Towing services are very crucial at a time of misfortune for any car owner. There are so many scenarios when you will require the services of a towing company. Some of this situations are when you; you are involved in a road accident, your car breaks down in the highway and cases of car abandonment.In all this situation, there is no other choice than to hire a towing company to move your car for you to a specified situation. However, there has been a question that most people ask about towing companies; Are towing companies responsible for damaging your vehicle?

When you hire just any company without critically analyzing them, you should be ready for anything including damage on your vehicle or not honoring the terms of hire. In the case that your car is damaged while in the hands of a towing company, there is a legal procedure to follow to claim for compensation, and Yes, if you prove the towing company guilty beyond reasonable doubt, they should pay you accordingly.

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