QuestionMy husband and son-in-law have just entered the towing business. I am trying to help them get started. I've searched everywhere on the Internet for a method of pricing tow jobs -- but to no avail. Can you suggest a site or publication that can help us set a price? Thanks.
Answerwow I would love to have that answer for you, but there are so many different things that affect the pricing of a tow.
First of all you need to know your costs of doing the tow, which is the fixed costs and the variable costs you will incur on a daily, weekly, monthly and yearly basis.
Truck payments, maintenance on truck, tires, fuel, phones, advertising, insurance, workers comp insurance, offices, storage yards, licenses, permits, DOT numbers. are just a few items..
Second thing is that do not set the price by what others are charging, if they are not making money and you are lower in price are you going to make money?
Research the costs, keep good records, develop a business plan and see what is there in it for income and a profit.
You will find that no matter what you charge lots of people say you are 2 high. BUT you will never see or hear someone say you are 2 low!!!!!
Now to add to this problem, some states have regulations in place from agencies like the Public service commission and that will set the rates you can charge.
Is there one place to get information about towing. Nope, not yet, but there are several towing forums which discuss issues about the business.
Tow411.net and Towtalk.net are just 2 of them. Do a search on towing forums and maybe towing issues. It might get some results but you will have to dig a bit to get everything you are looking for.
Is there a tow companies for dummies book yet, Nope, and I have been trying to write one for about a year. Its a long process and there are lots of issues and things that have to be considered in a towing business.
Good luck and feel free to ask any other questions you might have.
