The other day, I was sitting in the barber shop, waiting my turn and I heard someone say, “Hey, Don, how’s it going?”
I looked up to see one of my favorite heavy duty tow truck operators, Tyler.
We hadn’t spoken in 10 years. Not due to a falling out or anything. We just went down separate paths after I sold the business.
We shook hands and caught up a bit, and then he gave me the rundown on what had been going on in his life.
A few years back he’d purchased an established towing company in a nearby college town and had snagged the parking enforcement contract for the University.
Quite a lucrative deal. As it was a five-year contract.
Then we talked about what had been going on with everyone else. The rise and fall of other towing companies in the area.
How up and coming rock stars were knocking established tow company owners off their high horses, as the city contract continued to change hands every two to three years.
As we talked, I thought back to how I lost the city contract.
It was my refusal to pay (bribe) the city for the privilege of providing a valuable service to the community.
Of course, my competitor had no problem whoring his business out like that.
At the time, it was pretty devastating, losing it. And it still stings a bit as you might imagine by my choice of words.
But, we got through it.
In fact, losing the contract was a blessing in disguise. As we were freed up to pursue other business.
Anyway, this whole trip down memory lane with Tyler got me wondering what these poor “up and coming rock stars” were giving up these days…just to play the city contract game.
Was there any profit left? Or was ego and FOMO driving them to obtain the contract at any cost?
I don’t know…and I didn’t want to get too nosey. As I wanted to remain friends.
What I do know is that if you want to be successful in this business you can’t rely on any single entity for your livelihood.
That’s why I always suggest that you have revenue from a variety of sources.
We had house accounts with hundreds of local and not so local businesses. We contracted with more motor clubs than I’d like to admit. Dipped my toes into running repos for banks and working for Copart. Had a strong cash customer base, and worked with 5 law enforcement agencies, performing recoveries and towing services from motorcycles to tractor trailers.
I tell you this not to brag but because some were good moves and some weren’t.
You see, I’ve made my fair share of mistakes.
So, if you’re just getting started or trying to grow your business, there are a few hard lessons I’d like to help you avoid learning the hard way.
First of all…marketing matters.
You can have the best towing company in town, but if nobody knows you exist, what does it matter?
Please don’t just rely on word of mouth to get your name out there. People can barely remember their own phone numbers. How are they going to remember yours?
That’s why a good website, solid Google reviews, and some well-placed ads will do wonders for your business.
Next, don’t, don’t, don’t try to build your business on motor clubs. It’s like building a house on sand.
Yeah, they’ll send you work for a time, but eventually they’ll nickel and dime you to death.
No, this business isn’t easy.
But to help you along your way I put together a report that addresses the 6 most common pitfalls that cause towing companies to fail.
I wrote it to help you to step back and see some of the things you might be doing that can be remedied. And hopefully set you on a course of continuous growth.
D
on Archer
P.O. Box 104432
Jefferson City, MO 65110
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