Written By Don Archer Connect with him on Facebook
So you’re ready to do it. You’re ready to make a change in your life and start your own towing business. Good for you, being in business for yourself is the only way to go. You’ll have more freedom, more fun and the ability to grow something from the ground up.
It’s not an easy decision, breaking free, and you certainly don’t feel like you’ve got the world by the balls when you first do it. I remember the pain in my stomach the day I decided to make a change in my life. Three kids and a wife and now I decide to do my own thing? Essentially I was unemployed and didn’t have a clue how to get business.
So wait; Way before you buy a truck and invest in equipment, training and advertising…Way before you pick out a catchy name…Before you make it all legal and righteous by the powers that be… And certainly way before you quit your job- You need to know if it’s worth your time. You need to know what the payoff’s going to be.
So let’s begin with the possibilities. You’ve made the decision to go into business for yourself but if you don’t know what you’re gonna get out of it you’ll never be motivated to move forward.
Here’s a list of the different revenue sources and rates others have charged. These rates are not representative of any area in-particular and should only be used as a guideline, a place to begin. Your situation and the rates you charge will be determined by your costs, expected rate of return and competition in your area.
Towing for individuals $40 to $75 hook plus $2 to $5 per tow mile
Towing for Repair Shops $40 to $75 hook plus $2 to $5 per tow mile
Abandoned vehicle towing PD Varies- Dependent upon circumstances
Accident rotation PD Varies- Dependent upon circumstances
Towing for Motor Clubs $30 to $50 hook plus contracted mileage rates
Other Services- Motor Clubs $30 to $50 plus contracted mileage rates
Towing for Trucking Companies Varies with services
Unlocks $30 to $50 plus mileage
Jump Starts $30 to $50 plus mileage
Tire Changes $30 to $50 plus mileage
Fuel Delivery $30 to $50 plus mileage
Battery Sales $30 to $50 plus mileage and markup on battery
Winching $50 and up Varies-Dependent upon circumstances
Private Party Towing Dependent upon regulated rates in some cases
Repo work $200 and up depending on level of involvement
Business Accounts Varies
Equipment Hauling Varies- requires rollback or trailer
Scrap Hauling Dependent upon price-per-ton
Now that you’ve got an idea of services and rates, you should be able to do the math and figure out how much money you could bring in on a daily and monthly basis.
Example: Assuming one guy with one truck – Also assuming an average call brings in $50 and you do 10 calls per day – That’s $500 in sales daily. (some days will be less some will be more and there’s no guarantee that you’ll make a sale on any given day) If you can do that for an entire month- 22 work days (weekends off) then you’re looking at $11,000 per month in sales.
But don’t stop there. Now that you have an idea of the possibilities of the income you’ll be making you need to determine what the costs of running your business are.
I want to know everything I need to know about this business!!!
Im waiting for my business license to come in the mail looking to buy a flat bed
Cornell, thanks for contacting us. If you need help starting your business off on the right foot please fill out this contact form and someone will contact you.
Hello Sir, my brother and I are interested in starting a tow truck business in Reno Nevada. Currently im working in an auto repair shop in Reno and have been an auto mechanic my entire life. My brother is from the state of washington area and hes retired and wants to invest in me with the startup of a towing business. He wanted to buy two tow trucks but i told him to wait. I know there’s a process to starting a towing business. I was reaching out to your organization in hopes of finding solutions to starting a towing business. Sincerely…Tony. A
Tony, Thanks for contacting us. And, yes you are right, to be successful, starting a towing business requires planning. The first step is training. You must have an understanding of what’s required to operate a tow truck safely. Not only are you responsible for the safe-keeping of the property of others, but, since you’ll be operating on the roadways, you’ll be responsible for the safety of other motorists.
Choosing the right location and what type of towing business you’re going to operate, also play a large part in your success. And, to ensure a consistent stream of revenue, you must have a strategy for customer acquisition.
If you would like help moving forward, contact our office during regular business hours.
I want to know everything
My husband and I are wanting to start our own towing business please give me whatever information you can to help us, is there any grants out there to help!
I am not aware of any grants that are geared specifically toward the towing industry, but you may qualify for a small business loan with the help of the Small Business Administration SBA. Also, you could check out the “Resources” Tab of our website for additional information. Thank You
Hi Don my name is Mario Marchionni
I was in the towing business and expanded into scrap metal. Anyway, that is my passion! I got sick and a doctor left scissors in me, so I got metal poisoned I had to have over 28 operations. So a lot has changed in the business. I have a neighbor that been repairing cars for the past 30 years.
Anyway, I was forced to go on ssdi and now SSI everyone knows that you can’t live off that. Before I towed in Connecticut and now I live in Cocoa Florida.
I know it one of the most dangerous jobs out there. I would love to speak with you and pick your brain, do you help people with start-up LLC or corp?