Businesses in the towing industry are hauling in good figures. In 2018, total revenues were estimated at $7.1 billion with 4.7% annualized growth. The average company at that time was earning approximately $700,000 per year with each employee responsible for generating about $116,000 of his or her company’s revenue.1
Of course, businesses within the towing industry grow to be more profitable over time by effectively building their portfolios of work. The bottom line will become noticeably larger as loans for vehicles, equipment, and buildings are paid off. Yet, there are a number of ways any business in the towing industry can increase its revenues and widen its customer base.
Strategies to Grow Your Towing Business
- Create partnerships with local businesses. In many locales, room for parking is a premium. Proactively introduce yourself to business owners or managers and let them know how easy it is for them to contact your company to remove unauthorized vehicles from their parking lots. Providing a few items with your company name and phone number (calendar, mugs, note pads) will certainly help to keep your name front-of-mind, but routine and personal visits to say hello will go a long way towards creating long-term business relationships.
- Reach out to insurance companies and auto body shops. Many people who break down on the road or suffer an automobile accident don’t know who to call for a tow (hence why there are so many “AAA Towing” companies in the yellow pages.) By emphasizing your high standards for customer service, quality towing equipment, and fair pricing, you can motivate these companies to send clients your way.
- Adventurous owners may be interested in the repossession business. The work is tough and vehicle owners can become agitated or aggressive, so it’s not a route to take lightly. It’s a good idea to talk with other professionals already in the field to decide if it’s a good fit and then research the State’s laws and licensing requirements.
- Consider goodwill tows during hazardous weather. If your area is subject to blizzard conditions or is met by the path of a tornado, volunteer your company’s resources to helping victims recover vehicles and get home safely. It’s a proven fact one of the most significant ways to gain new business is through word-of-mouth referrals from customers, and helping someone out in a disaster is something people talk about with friends and family.
- Make sure customers can find you. 55% of people search online for reviews and recommendations to choose a company to hire, and 47% want to see a company’s website before making a decision. Unfortunately, 46% of small businesses lacked a website presence in 2018. Developing a website and maintaining it properly so it is discovered by search engines can be tricky business, but luckily many local marketing companies throughout the country can handle this for you at an extremely reasonable cost.
At Collins Dollies, we manufacture the lightest, safest, most serviceable, and most advanced towing equipment to keep your employees hauling vehicles safely and easily. With Collins Dollies, it’s simple to get any vehicle out of the toughest spots and to its destination safe and sound. When you’re looking for a solid investment to expand your tow company’s capabilities, check out our Hi-Speed® Dolly and Carrier Dolly systems. Contact us today to learn more about how we can help your business grow.
Kentley Insights: 2019 Motor Vehicle Towing Market Research Report, June 2019. ↩