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  • 2 years later...

Ed's last comment is a perfect example of a good tow boss looking PAST the fat club checks to see what they have laid out to make it. I too saw the light after years of being blinded by the checks. It was certainly the scariest but best move I ever made getting away from the contracted clubs. I am no where near as busy as I was back in the club running days, But now when I go out I make a fair PROFIT on every call. 

PROFESSIONAL TOWING & RECOVERY IS NOT JUST A JOB.. IT IS A LIFESTYLE

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The original post was from back in 2018 and I meant no disrespect with my comment.

 

Ed is a good business man to run the numbers and make the tough decision to walk away from 300K in business because it was not profitable.

 

As far as the clubs go, as grumps had stated somewhere else, they are not loyal to us, nor are they our friends.  If you are in an area where there are many tow operators, the clubs have the advantage getting us into price wars to keep our trucks moving and revenue coming in.  If you don't do as Ed did, you can find yourself busy as hell and broke.  If your in an area where there is not a lot of competition you will certainly get a better rate.  I am looking into club work and have read numerous old posts here and there is a lot of negative in the posts, but there is also a fair amount of posts where the club works seems to work for companies.  That tells me that club work, may work, or not, based on a number of factors which is what a business owner need to figure out. In my humble opinion, any business owner needs to find their niche AND be a diversified as possible.

 

 

 

 

A good friend will bail you out of jail, but a great friend will ...

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In my opinion, you have to control the discount work to a minimum of your total volume. I originally took it thinking that it would be "fill in" work to keep guys moving while waiting for Police & retail jobs. The problem is if you're contracted with AAA, it is typically overwhelming. In our situation, it became 85% of our towing volume (labor or work)...but 25% of our gross revenue (rewards for labor). Another thing I learned, some companies keep it as low priority work since the money is soft. So in turn they don't priority the calls. In the towing business, that typically means long ETA's. I also believe in the business philosophy of "Good, Cheap, Fast...You Can Only Pick Two". But here's the kicker... when it comes to customer service, low priority reflects on you...NOT the club. So I feel that you shouldn't give poor service due to poor wages. It's better to just not do the work at all. Just something to think about.

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