In order to run a successful towing company, you need to be able to determine rates and make a profit. This article will break down the factors that go into determining your price so that you can price your services at their accurate value.
You may be tempted to lower the price of your services to ensure people call you for their towing needs, but this is a sure way to run your towing company into the ground. You need to build a financial plan and stick to it.
Think about all of the expenses you need to pay for your company. You’ll have truck payments, rent/mortgage, telephone bills, utilities, accounting, uniforms, equipment, advertising, insurance, licensing, and taxes. All of this is why you mustn’t sell yourself short.
To determine your rates of service, identify the fixed and variable costs (ie, gas, hourly wage for driver, etc.), determine how many calls you’ll run on a monthly basis, use an online profit calculator to find your desired rate, and test it in the market. Take a look at what your competition is doing, too.
Clearly, there are a lot of things to take into consideration. Watch the video for a more thorough breakdown of the best way to set your towing rates.