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Motor Club Destroying Business

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Has anyone personally had to take legal action against any of the big player motor clubs such as Agero, Allstate or AAA? I'm at the point where I don't think I have a choice. I went from making $5,000-$9,000 a week to making$1,000. I've had this relationship with them for 7 years. They basically came in and said we are cutting your roadside in half and the loaded and unloaded miles on towing in half. It's killing my one business that depends on this motor club specifically for business. I have multiple other businesses that dont depend on motor clubs so thats good for me but this business wont be able to survive after this hit. I did contact my lawyer and I'm meeting with him on Monday but i didn't really want to wait until then to get input. Thanks!!

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Read the fine print in your contract.  They are in no way obligated to supply you work.   Ive played the game, got rid of AAA 10 + years ago, I o some club work when it makes sense, and when it doesnt I quote them a price ia credit card that makes sense for me.  If they bite, great, if not i am money ahead keeping the trucks parked in the lot.  My opinion, let them go.  When the cheap guy thats getting the work now screws up, they will be back to you.  If you run multiple businesses already you are smart enough to know about keeping all of your eggs in one basket.... especially when one basket is agero, allstate or aaa... not a good idea.  We cant depend on them to pay our bills.  They will be the first to stab you in the back to save a penny.

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That’s a huge disruption to a business, I am sorry. I hope you can find other work to replace it, or cut your losses quickly. Lots of stories over the years here of how a motor club can drop you like a stone, when they want to.


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We are a small business and used to do every motorclub available.Then other tow companies with new equipment would come in and undercut my prices by almost half.Eventually they wouldnt be able to keep up with truck payments and payroll and service would suffer.Guess who calls us back  we now have contracts that we modified that if they want our service they must supply a certain amount of calls a month.Motorclubs owe you nothing they owe the customer service.Obviously they are in business to make money and will find cheapest way to do it.When customers start getting angry at poor service ,calls start slowly coming back again.Before you spend money on lawyer read contract line by line.If you could get motorclub to give back work at your rates we would all be doing it.This is similar to what ESC said and many of us learned along time ago DONT DEPEND ON MOTORCLUBS!!!  PS motorclubs around here are using people in cars to do battery jumps,tire changes,lock outs,etc and paying them $18 a call.


Kevin's American Towing Service
Ph: 631-654-8811

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Motor clubs are a thorn in my keester, not because I run them, but simply because they are a degradation of the tow industry, if you can't see that, maybe some company reflection is required.

 

If tow companies would stop towing for motor clubs at THEIR rates, this would not be an issue.

 

M.C.'s were fine decades ago, but not now, it's purely for-corporate-profit at the tow companies expense.

 

I will never understand why any company would accept business from an entity that will not pay YOUR RATES! It's not their truck, it's not their driver, nor their safety risk, but it's them dictating to YOUR company what YOU will do for a few bucks.

 

5 miles free 10 miles free / less per loaded mile / pay for tow minus the winchout required ..... does your truck run on air for those miles? / did the vehicle magically recover itself to the road for you?

 

Not to mention the VERY often endless calls to billing just to try and get what they told you they would pay to begin with but now will not.

 

If all tow companies would stand by their set rates and nothing less, who does that put BACK in charge of our industry ..... the very companies doing the work. The cars will always wreck the cars will always break down - the motor club is simply not needed on OUR end of the scenario, let the insurers deal  with the MC finances, not us.

 

Be a tow company, not a tow patsy.

 

I realize my thoughts may get under the skin of some, I tend to get mouthy towards obvious B.S., that being the M.C.

 

 

Tumbleweed

Edited by Tumbleweed

There may not be a trail ahead of me ..... but there's damn sure one behind me!

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That was spoken perfectly Tumbleweed. M.C. work is FILLER work. anyone who has a company put together that relies on M.C. work is destined to fail. There is not a club out there that cares about you the tower. They are a third party entity that gets paid for simply being the middle man. Yes, i do SOME work for agero under contract but, we agreed on a contract that is fair for me and my company. All other clubs pay via credit card at time of service at OUR rates. Dont like it? Then call someone else. We quit AAA about 12 years ago and everyone said that it was the biggest mistake i could have made and i would be out of business within a year. We were running our butts off for them and to the naked eye they would think we were raking in the cash. Dumping AAA was the best thing we ever did for our company and have prospered ever since. No more Free miles, No more $12 tire changes with no in-route mileage. If your depending on that club work to keep your business going you need to step back, and take a deep look at your business model. Just because your running all over the place for them does not nessesarily  mean your making money.  Not trying to hurt feelings here but I would hate to see your business go under because your hoping agero is gonna keep you floating. 


Towing And Recovery is not just a job, It's a Lifestyle For only the Toughest Families.Stay Safe My Fellow Towers!!!!

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