In a previous article I gave a heads-up to all those people still waiting for a tow truck. And explained that the reason for the wait is because motor clubs are looking for the lowest priced service provider and will take as much time as necessary to find them. In this article I want to tell you what role I believe motor clubs should play in your business.
A lot of people have emailed me about the article where I laid out the truth about what the motor clubs are really doing. Most of you guys agreed and understood that they’re taking the lion’s share of the money and making motorists wait…for no good reason other than to line their pockets. But there were a few who questioned whether using Google would result in better, faster, quality service…more-so than calling their trusted 800 motor club number. And I believe the reason for this is because of a horrible myth that’s being spread by the motor clubs.
One of the most egregious arguments the Motor Clubs use is to suggest that when motorist’s use some other means to procure their own tow truck they’re taking a big risk.
The implication here is that, calling a motor club ensures that motorists will receive the best trained operators, the highest quality service, and…that the guys who show up will have top of the line, state of the art equipment.
And that choosing your own towing company…you know…the ones you find on Google or some towing website…is a huge mistake. They say…Who knows what you’re going to get? The people you call might just be…some inbred hillbilly who shows up in a 1989 Pickup truck with a chain to pull your car into town. And that the unsuspecting motorist will be forced to…”ride in the back” with Uncle Todd and the family hound.
The reality is completely the opposite.
Those who rely solely on Motor Club revenues operate on the thinnest of margins. Which means that after paying for fuel, insurance, truck payments, payroll and all the rest—there’s little money set aside for upgrading equipment and retaining quality drivers.
Those companies who rely solely on motor club revenue usually fall into 1 of 3 camps.
- There’s the brand new company who services motor clubs as a stepping stone to build their business.
- There’s the fleets, maintained by some of the clubs…who if forced to make a profit as a stand-alone company, would wither and die.
- Then there’s the individual who believes he can make it on what motor clubs pay and…hard as he tries…he finds himself spinning his wheels. Working for nothing.
Those companies who know how to properly incorporate motor clubs into their businesses are not the one-tooth wonders the motor clubs warn their patrons about. They are the ones who know that servicing motor clubs is a tool to be used to leverage your businesses. And that relying solely on motor club revenue is a mistake that will send your business to the bottom.
So how should you handle motor clubs in your business? Here are my suggestions. You should use one of these two methods when dealing with motor clubs.
- You should fully embrace each and every one and do whatever is required to be number one with each company. And once you’ve gotten cozy with them…use the visibility you gain in your marketplace…to grow the cash-call side of your business. And as your business grows and you determine that servicing motor clubs less and less is in your best interest, then begin doing so.
- You should register your company with each and every motor club but not be contracted. Doing this does not ensure you’ll receive a large number of calls. But what you do get is—“Your Rates.” Going this route means that, when a motor club dispatcher calls you…they haven’t had any luck finding anyone within their network to do the call. So they’ll be willing to pay your rates.
As I’ve said before…dealing with the motor clubs, right now, is not a partnership situation. They do not care about your company’s bottom line, they only care about their numbers. And although your motor club rep may be a nice guy…he’s still a company man, and—an employee only. It’s not his fault but he doesn’t fully understand the difficulties you face with running your business.
And I promise you this…You will absolutely love your business when it’s more profitable. And to get there you should only serve motor clubs—if it’s to your advantage, and even then…they should only be a small portion of your business.
It’s true the biggest obstacle to success in the towing business is dependency on the Motor Clubs. And to lessen your dependency and increase the number of cash calls you get I’ve developed a 4 tier program that shows you exactly how it’s done. If you would like to discuss it and learn how to make your business more profitable click here for a FREE one-on-one coaching call.