QuestionQUESTION: I would like to ask what % of sales do tow trucks typically get from individual consumers for service calls and/or towing.
If I were to look to start a tow truck company I would think it would be all consumers but actually the largest percentage of calls are from auto clubs and volume relationships. So I understand it is a smaller %, but I would like to ask for an approximate percentage.
ANSWER: Brian, I really wish that I could help you with your question, but each tow company and area are different. And I can not see how your area is in regards to other existing tow companies and what ever customers you could get.
I also do not know what area you are in, and some states have different requirements about establishing a towing business. Some areas regulate the rates you can charge by state law.
(Oklahoma, Massachusetts, Louisiana all come to mind)
Now a word about motor - auto clubs, as you will find that they are more interested in low prices and quality service on the most part.
Now I am not sure if you have any experience with tow trucks and driving them, but this is not a normal 8- 5 job. It's 24 hours / 7 days week for owners and very small companies which are what you are going to operate.
Now there are other web sites which can help you with learning about the industry. You might check out
www.tow411.net
www.priceperpound.info
www.townation.net
www.towspace.net
Good luck and I hope you do what is right.
---------- FOLLOW-UP ----------
QUESTION: I would like to ask in the tow truck industry overall, the % of individual consumers vs. % of contracts.
If you do not know for the industry generally, I would like to ask in your area as an example. Not how much each tow truck company could get, just how large the market is for individual consumers.
AnswerIt all depends on the area you are in... I am in a rural area where the service area of our tow company maybe as 150,000 to 200,000 people...
And there are 13 companies within 40 miles.
As to where I work, we do a lot of different kind of towing.
We provide towing service for 2 automotive salvage pools which is about 60% of our business.
And we do a lot of towing of semi trucks and trailers for dealers and such. So that is about 30% of the business..
Rest of it is police towing, retail towing, and motor clubs.
BUT I know in some larger areas that there are tow companies which do only heavy duty towing or it makes up like 80 to 90% of the business.
And in some large cities there are tow companies which do only motor club towing due to exclusive agreements to provide service to just one tow company.
And then there are companies which do not have a tow truck and just provide "emergency road service" for motor clubs and other customers.
This is a question that I can not answer, as it is a homework question which depends on your area, and what you are really trying to going to try and do.
Research your market, find out how many tow companies are in the area. Check and see if there are "ROAD SERVICE ONLY" companies which provide service for motor clubs. Yes there are companies which do that and do not even own a tow truck.
