A question I’m often asked, and one that came in again recently is…
“Why’d you sell your business? Did you see what was coming with towing? You know, the problems with insurance companies, motor clubs, etc, etc?”
Like I’m some kind of Nostradamus to the towing industry.
When I get this question, it reminds me of the scene in Terminator when young John Connor says, “We’re not going to make it, are we? People I mean.”
But replace “people” with “tow company owners.”
Not all tow company owners, of course, but many.
Because, if you’re doing business right you’re like the Terminator. And motor clubs can’t hurt you.
How do you do business right?
You understand that complacency is a killer. And are constantly working on improving your marketing and relationships.
There’s an old Russian saying that goes, “Only dead fish swim with the stream.”
Meaning, those who fail to take control of their future may find themselves swept away when the current inevitably changes.
What currents affect motor clubs?
The two big ones that come to mind are losing contracts to competing motor clubs/insurance companies. And the desire for increased profitability.
When the motor club you’re contracted with goes belly-up due to competitive forces, all those calls you’ve been getting dry up.
And when your “trusted partners” determine there’s more money to be made, who do you think they’re going to come to first?
The motorist? The company they’re contracted with?
Nope.
They’re going to nudge you, ever so slightly, in the direction of reduced rates.
So’s you get more call volume. They’ll say.
But selling your services at cost in an attempt to make it up with the volume is never a good idea.
However, when you operate outside of the interests of the clubs and instead cater to the millions of autonomous motorists, all armed with smartphones, your profitability and viability as an ongoing concern goes up substantially.
Unlike the Terminator, I don’t believe it’s in your nature to destroy yourselves. It’s just that many see motor clubs as the “Easy Button” to success.
Unfortunately, the clubs know this and capitalize on it.
Now for some good news. In case you haven’t had the opportunity to get your hands on this yet, consider this a reminder.
I put together a report that addresses the six most common pitfalls that cause towing companies to fail.
I wrote it to encourage you to take a look at what you’re doing and see if there might be some blind spots you’ve been missing.
If you need help along the way, I’m available to help. You can schedule a call at the link below.
Don Archer
P.O. Box 104432
Jefferson City, MO 65110
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