Call 888-834-1123

Articles

Home
Resources
Articles

Towing Industry Articles

Written by Marketing Expert, Dennis Wencel

Getting the Most of Your Tow Show Visit

Getting the Most of Your Tow Show Trip

Towing Recovery Footnotes(This article originally appeared in the April, 2011 issue of Towing & Recovery Footnotes. You can view the entire issue electronically at their site http://www.trfootnotes.com/)

Each year I attend several tow shows offering seminars on the topics covered in this column. As I put my schedule together this year, I am reminded of just how difficult it can be for a small business owner to commit to attending a show. The expense of travel and the time away from the shop when who knows what is going on can all be powerful motivators to skip the show again this year.

But it is also important to remember going to a tow show can be a great break from the daily grind. It can give you a moment to consider longer-term business planning ideas and a chance to be exposed to new products and ideas that can improve that daily grind. Then kick in the fun of spending time with the only other folks in the world that truly understand what you go through each day, and maybe the idea of hitting the show this year isn’t so far out of reach.

Over the past couple of years many towers have made the difficult decision to forgo the show in light of the struggling economy— and with good reason. It is difficult to commit to all of the costs associated with attending a show when you’re hearing the phone ringing less often, or you’ve been forced to send idle employees home early recently, or you haven’t taken a paycheck in a while.

Targeting just one of your biggest expense items, like advertising, employee pay, equipment mortgages, liability insurance, or fuel for savings can make your tow show trip pay off big time. With a little planning, and a commitment to having a few challenging conversations at the show, these ideas can you help you turn a tow show visit from an expense item to an expense saver.

Tow Show TruckEquipment Financing. A bank that attends a tow show is targeting towers—and not just the big guys. They have experience lending to the industry and understand the financial realities of a small, local tow company. So if you are planning to add a piece of equipment this year, bring a copy of your latest corporate tax return and sit down for a few minutes with each bank at the show. Chances are they could secure more favorable financing terms for you than even your local bank can. It may seem a little odd, but banking is no longer a local business, so take advantage of a lender who understands towing and is looking to work with the towing industry.

Liability Insurance. Insurance underwriters are once again interested in providing coverage to the towing industry. With the downturn in the construction trades, insurance providers are hungry for new customers, and the towing industry is one of the biggest benefactors. If you have relatively clean loss runs over the past five years, bring a copy with you along with your current policy. This will demonstrate you are serious about obtaining a competitive quote even if your renewal isn’t for a few months. Then follow up with each company 60 days before your renewal to get their final quotes. Insurance companies attending local or regional shows will have the ability to write coverage in the states from which attendees come.

Safety Apparel and Equipment. Safety apparel and equipment have made huge advances in recent years, and as more competition enters the market, prices are coming down. We all know the best investment we can make is in ensuring the safety of the team, so come to the show with a list of employee sizes and needs. Make a large purchase of reflective gloves, hats, vests, jackets and pants—even if employees are responsible for providing their own apparel. You can offer the items to your guys for a discount or to reward good behavior throughout the year. Reflective gear can loose effectiveness over time and show prices are some of the best around, so extend the savings to your guys who could not make it to the show.

Make Your Voice Heard. Another way to make sure you get the most of your tow show trip is to communicate with the promoter. Let the show organizers know what issues and challenges are most important to you. If you want to see more seminars on advertising or employee management or accounting software solutions, let then know. Organizers are eager to provide valuable seminars and demonstrations to attendees and they always value feedback from those on the front lines of the industry.

A successful tow trip should be able to help you address a business challenge or two and provide you with some much needed rest and relaxation. So start planning now, because tow show season is right around the corner.

Dennis Wencel developed “The Black Book of Towing” and accompanying DVD set to help independent towers be more profitable. The book and DVD set detail simple and proven ways on how to run a towing company from the business end. You can order them on his website at www.towprogram.com or by calling 888-834-1123. TowProgram.com also provides affordable online advertising solutions for the towing industry. Wencel has divided his time over the past 20 years running his own tow company and working in marketing.

Five Things to Consider Before Starting Your Tow Company

Five Things to Consider Before Starting Your Tow Company

Starting a towing company can be both a rewarding and challenging process. But as excited as you may be to get the wheels rolling and the cash coming in, there are a few things you may want to consider before opening your doors.

Black Book of Towing1. What kind of company do you want to build? Diversity in sources of business is important when running a towing company. The old adage “Don’t keep all of your eggs in one basket” holds true for the towing industry as well. Understanding the potential sources of business (or where your calls will come from) and how profitable they each are can be helpful in determining how successful you will be from the start. Having a healthy mix of sources protects you from being overly vulnerable to the ebb and flow of any source demand. For example, tow companies that relied on only servicing new car dealerships are in a world of hurt right now scrambling to find new business until the dealership business rebounds. The most common sources of work for a towing company are calls received from:

Municipal/Police Calls – These calls will come directly from the police dispatch officers at the request of officers on the scene. Towers establish formal or informal relationships with local police departments to provide towing services. Fees per call are usually the highest of all sources but usually require higher insurance coverage and quicker response times. Check with the local police departments in your area to learn what the procedure is for getting on their list of providers.

Cash Calls – This is also a profitable source of calls. These calls are performed for customers who contact your business directly and pay you directly for services performed. These calls are generated through advertising and marketing efforts organized by the tow business itself. Learning how to build a successful brand for your business and cost-effectively drive calls from cash customers can deliver profits for years to come.

Motor Club Calls – Little expense and little profit. These calls are a great way to get your feet under you while starting a new business. It’s a steady stream of work so you can learn how to run your company. You have no advertising expense and the phone just rings and rings. But with often less than $5 profit per call don’t start planning your retirement servicing motor clubs alone.

Account Calls – Every auto repair and body shop needs a tow partner. And though a discount is typically provided to the shops for their calls the profit can be 10-times that of a motor club call. But be ready to work to build these relationships. Shop owners have heard every pitch under the sun from a tow company. So another guy at the counter offering to do it cheaper is nothing new. Talk up your brand and your expertise and your commitment to making their customers happy, otherwise you’ll look to him just like every other tow company in the bunch.

Auction Calls – Providing services to an auction house like Copart can be another great way to provide some stability to a new towing business. These calls offer similarly slim profit margin as motor club calls but they have the added benefit of a flexible response time. You don’t have to be there in 20 minutes so long as you complete the call that day. So you can have the flexibility to respond to other, more lucrative calls and get to the auction call later in the day.

Private Property Calls – These calls are to remove vehicle from private property without the vehicle owners’ consent. This type of towing typically requires additional licensing and reporting and due to the fact that you are moving vehicle without keys can require additional operating training to minimize damage claims. PP towing can be a high-risk, high-reward business but may just be the perfect fit for a new and motivated company. Consider purchasing a light-duty self-loading wrecker for PP towing to make loading easier and safer.

2. How much are you going to charge per call? This is the million dollar question. The answer is how much do you want to make. Working backwards from your desired income, then adding in anticipated expenses and finally dividing by the number of calls you think you will perform can give you an idea. But that is putting a lot of pressure on your ability to guess correctly at some really important numbers. Consider calling around to local tow companies and take an informal poll to see what the competition is charging. Then make some estimates on what you think your volume will be across all sources of work (most have unique prices) to get your projected annual revenue. But be sure to track these numbers closely. If you see your actual calls under-performing your projections make adjustments sooner rather than later. Most new companies will fail by allowing expenses to outpace revenue. And plan on living on a small salary for the first 6-12 months. Much of the profits will need to be pumped back into the business to acquire one-time purchases of equipment and supplies.

3. What assets will you have day one? A big mistake made by new business owners is buying an expensive truck or fleet of trucks in their first month of business. Keeping truck payments and other big expenses to a minimum in the first year of operations may not be the sexist path to success but could prove to be the wisest path. Fluctuations in fuel prices, employee expenses and supplies can sneak up on a new business owner so prepare for the unexpected, even if you do not yet know what it is. Plan to have $10,000- $20,000 in cash in the business at any time. This could be in accounts receivable, cash advances for body shop clients and prepaid insurance premiums.

4. How do you want customers and future customers to describe your company? Build a brand, not just a company. With an overabundance of towing companies to choose from consumers often select companies at random to call for a quote. Make your business stand out by having a good name and strong marketing plan. Having these in place before you start spending on advertising will make that money work harder for you. And be careful when committing to long-term contracts like annual yellow page business directories and online advertising commitments. Ask what you can expect in return for your money and remember, much of this can be done yourself for little or no expense.

5. Who will be your first customer? Start building your contacts now. Your company doesn’t have to be up and running to print business cards and go around introducing yourself to potential customers. Tell them you are launching in 3 months but wanted to understand what they look for in a good company. It will show your dedication to providing a good product as well as provide you with some insight on how to better compete with your future fellow industry professionals.

Having your own business can be a great experience but it will always be hard work. Preparing for some of the common pitfalls before opening your door can help ease the stress and have you better prepared to take on the daily challenges of a tow business. After running a successful tow company for several years I know much of what you will need to do is not difficult work, its just hard work. Committing to be the best when it come to solving customers’ problems by getting the job done will go a long way to ensuring your success and will give you a huge boost over your competition.

After selling my tow company, I created TowProgram.com as a way to help new and existing towing companies become more profitable. The program is skills training for the business side of towing. Its an educational tool that simply, easily and effectively tackles the biggest challenges tow companies face. It covers:

– Cost-effectively building a strong brand to make your company stand out

– Easily computing costs and revenue per call leading you to greater profits

– Adding automation methods to help your business run more efficiently

– Better managing employee relations

– Preparing your business for a profitable sale

Black Book of TowingLearn more about The Black Book of Towing and Our Online Tow Company Advertising products at www.towprogram.com.

Saying Goodbye To The Yellow Pages

Tow Company Advertising

Towing Recovery Footnotes(This tow company advertising article originally appeared in a February Towing & Recovery Footnotes issue. You can view the entire issue electronically at their site http://www.trfootnotes.com/)

The internet has come a long way in the past few years in providing quality local business information. So much so that they have essentially put the yellow page directories out of business. And for good reason. From an advertiser’s perspective the internet is much cheaper than the yellow pages was to create a powerful presence for even the smallest of companies. And from a user perspective the internet offers a great deal more flexibility to search and more up to date content than a phone book. If you’d like to learn more about TowProgram’s tow company advertising program just call Dennis at 888-834-1123.

Saying Goodbye to Yellow Page Advertising

Dennis Wencel is the author of “The Black Book of Towing,” which covers nearly everything a tow company operator needs to succeed in business. He is a towman as well as a business and marketing consultant and will write occasional business columns for Footnotes.

One of the most difficult decisions facing tow company owners in recent years has been when to pull the plug on Yellow Page Ads. It’s like saying goodbye to an old dog. Sure, times weren’t always great and often he didn’t want to listen, but he always seemed to be there when you needed him. And though he consistently made the phone ring in the past, he’s no longer able to compete with the calls generated by the Internet.

It’s time to send Old Yellow to the big phone book farm in the sky and to say hello to a shiny new dog called local Internet advertising.

According to a 2008 Nielsen Media survey 82% of people start their search for a local company online. If you do not have an online presence, there is a good chance they may never even know you exist. The benefits of moving to online advertising include cheaper rates and more flexible options to advertise your unique mix of products like including pages on tire sales or engine repair. The downside—it is a bit more complicated.

A new mix for successful tow company advertising includes a basic phone book directory listing, updated local profiles, a website and a keyword ad campaign. The following steps will help you ease through the mourning process of Old Yellow as you prepare for an increased call volume.

Give up your ad, keep your listing. As a utility, phone companies are still obligated to provide a directory of commercial and residential phone numbers. Even though you do not have an ad you will still be listed in the yellow page general directory listings under your primary category (towing). If you’re feeling charitable, offer the salesman a chance to go away with some cash in hand by negotiating an expanded basic listing for a nominal fee of not more than $200 annually. This is an easy way to take the first safe step away from phone book advertising.

Create local profiles. The primary resources used to find local businesses are search engines—Google, Yahoo! and Bing being the biggest. These companies and other popular directories like YP.com, SuperPages and Merchant Circle build and maintain their own directories. Your company profile highlights your unique message and directs customers to your phone number or website. Though it’s becoming increasingly difficult to navigate to the free listing options on sites, most online directories offer a free basic profile listing. Chances are your profile has already been started. Just go to the above sites, find your listing and follow the process to claim and update the information. Be sure to update your profiles when you have something new to say like adding a medium-duty truck or on-site axle repair.

Build a website. Your website should be an expansion of your local profiles, describing your unique service offering and products through words and pictures. Adding images and/or video of your shop, trucks and people make the user experience more interactive and can help you combat some of the negative perceptions customers have about towing. –presenting you as the professional, reliable and trustworthy choice.

Launch a keyword ad campaign. The keyword ad campaign is the final leg in our three-legged online stool. Where websites and profiles provide passive information you publish hoping search engines connect you with desirable searchers, keyword advertising allows you to actively target customers searching for “towing” or most any other keyword you think customers use to search for your service. These amazingly targetable ads can be stopped or started at any time, viewed only by geographically targeted areas (say 25miles from the shop) and can have a set daily, weekly or monthly budget. You can even pause the campaign without penalty. The most popular service providers are Google AdWords, Bing Search Advertising and Yahoo! Search.

Be Prepared to Pay Less. With few exceptions, a tow company should be paying much less per month than the cost of their phone book ads. Unlike phone book publishing, competition is heavy for online advertising. Plus the cost to print and deliver tons of phone books is eliminated. You should expect to pay no more than $400/mo for a complete online campaign.

Partner with a Towing-Experienced Provider. If you’d rather stay focused on running your company than to keep up with the ever-changing SEO (search engine optimization) rules, consider hiring an advertising professional to run your online campaign for you. Though there are thousands of companies providing local advertising services, try to select one with industry experience. Having a partner that understands the depth of services offered by tow providers like point of entry, roadside and recovery services can have a big impact on your online success. Customers are not just searching for towing. Be sure you are reaching all potential customers.

Don’t Sign a Contract. Annual contracts are a holdover from the days when directory companies printed books at a substantial up-front cost and billed you for your ad throughout the year. Annual contracts for online advertising are unnecessary and breed complacency among ad providers. The motivation of the ad provider should be to drive calls to your phone. If your phone is ringing you are going to stay with the provider. If it’s not, it’s time to move on.

The Internet is an ever-changing monster, so advertising on it will not be as easy as renewing your phone book ad each year. But the cost savings and potential reward of driving more cash calls into your company is worth the effort. And you can always keep a picture of Old Yellow on the shop wall to remember the simpler times.

Dennis Wencel developed “The Black Book of Towing” and accompanying DVD set to help independent towers be more profitable. The book and DVD set detail simple and proven ways on how to run a towing company from the business end. You can order them on his website at www.towprogram.com or by calling 888-834-1123. TowProgram.com also provides affordable online advertising solutions for the towing industry. Wencel has divided his time over the past 20 years running his own tow company and working in marketing.

 

 

I Have A Website, Why Do I Need Anything Else?

Online Advertising for Towing Companies

TowProgram has been busy lately working with towing company owners to set up an online local advertising plan that are custom built for towing companies.

In the conversations I have with prospective customers I often hear similar questions from why they need to be spending money to advertise their towing company online to why should the be partnering with me and my team. I hear these questions so often in fact that I figured I would write a post about them in hopes of helping to better explain what TowProgram does to help your towing company succeed online and why its important to find the right partner.

Am I better off managing my online advertising process myself?

Hundreds of tow companies have already taken steps to improve their online presence. Many have websites, completed profiles and even completed their Local Places Page on Google Maps. But that is just the tip of the iceberg. The trick to getting and maintaining an impactful web presence for your tow company is to secure active listings and company information on multiple channels and then updating that content on a routine basis. If you already have a website for your towing company that is great but when is the last time it was updated? It’s probably been a while and what Google and other search engines value most is relevant and updated content. So it is of vital importance to make sure your website is built with an eye toward Search Engine Optimized. Search Engine Optimization is a strategy that starts before your site is even built to make sure the content, design and framework of your site is ideal for people searching for a towing company online. And the process must be ongoing to ensure you secure the most desirable search positions possible.

Additionally, changes are constantly being made to the algorithms that define what results are shown for each search. These complex and frequent changes can be time consuming to understand and months to revise your site to maintain your position.

Should I just partner with the Yellow Page salesman that visits the shop each year?

The TowProgram Online Ad Plan is built specifically for tow companies. We work exclusively with towers and the tow industry and this is why that is important. Every day we are perfecting the online tools that work best for matching people searching for towing with our towing company clients. We are not working with a lawyer’s office one day and a pet store the next and then a pizza place the next. Towing is a unique beast and the reasons why and how people search for towing companies is quite different than why someone may search for a dry cleaner. And is important you are taking advantage of those differences for two reasons:

#1) IT SAVES YOU MONEY. So much tow company online advertising that happens is wasted. The message is seen either by someone not currently needing a towing company or someone that needs a towing service outside your targeted service area. The only customers that matter for a towing company are those in need of immediate towing services within their targeted service area. Efficient targeting of ads takes time but the result is better bang for your buck. TowProgram’s Online Ad Plan for Towing Companies is built to be cost efficient and effective.

#2) IT SAVES YOU TIME. It’s important that your tow company online advertising partner understand your business. You have most likely received a call from salesmen saying he can get your ads on smart phones and other mobile devices and how perfect that is for a tow company since stranded people use their phones to find a tow company. But what they don’t tell you is that your ad is likely to appear at the top of a game that someone is playing on their phone. And that is unlikely to help you get cash calls no matter how cheap it is. We stay on top of the latest advancements in technology including all mobile advancements and commit to our customers that when a new technology comes out that meets our reach and targeting requirements it will be rolled out to our customer network immediately. I separate the wheat from the chaff for you so you can stay focused on other issues.

Choosing TowProgram is Risk Free with Our No Contract Policy

The value that TowProgram’s Local Online Ad Plan for Towers offers is second to none. We charge $179.95/mo. of which $50 goes directly to Google and Bing ads to drive traffic to your website through a custom keyword ad program. And the best part of all is it is completely risk free with our No Contract Policy.

Having been a tower for years I know just how much time is spent meeting with salesmen, and reading contracts and trying to determine what the right plan is for your company. I have removed all of that hassle from the process. If it looks like we might be a good fit give me a try. If after a few months you don’t think it’s working out just let me know and we will go our separate ways. I look at it this way. $180 bucks a month is the equivalent to getting between 2-3 more light cash calls each month. And if that doesn’t happen you should get rid of me. But that is not going to happen because I have had so many customers tell me they that the plan has paid for itself for the entire year in the first month we have worked together.

Last year I was spending my time convincing tow company owners to stop spending their money on Yellow Page advertising and move it over to online marketing. Last week I received my latest Yellow Page book at my house and I was happy to see that most of the towing companies had stopped advertising. Now the task it to convince towers to develop a meaningful online presence for their companies.

So what do you have to loose? Give me a call and lets talk about it. We can have you up and running in no time and you can finally resolve your online situation for good. I look forward to speaking with you soon. 888-834-1123

Steps for Successful Collections

Steps for Successful Collections

  1. Post a Warning Sign In the Shop. Posting a simple warning sign in the shop could let customers know you’re serious about collections. A simple sign saying, “If You Have Been Contacted by our Collections Agency, We Can No Longer Help You.
  2. Fill in the Gaps for Your Collection Partner. Sure the collections process is the responsibility of the agency, but in my experience they are going to work the percentages. They want to submit large amounts of claims and bet that 10-15% will pay out. You can increase your odds by providing them owner information, pay stubs and other identifiable information you find in the car before salvage/sale. Every little bit helps and increases your chances of getting paid.
  3. Submit Information to Collections Partner Weekly or Monthly. Having a routine for submitting contacts to your agency can assist them in increased collections success. People move, change jobs and otherwise make themselves difficult to locate. The sooner your collections agency can begin the process the greater the likelihood will see some money.
  4. Keep Your Cool. Maintaining a professional presence for your company can result in increased income. Many customers are already feeling uncomfortable and want to resolve the situation but may not have the means. If you want to manage it, offer a payment plan option before involving the collections agency. Show you’re willing to achieve a creative, but effective solution to the situation and customers may be more willing to work with you. Remember, its just business. Never make it personal for you or the customer.

Download a free sample “Shot Across The Bow Letter.” It will help tow companies make more money.

2 mins on TowProgram

Free Online Analysis

free online analysis We'll look at your specific situation to determine what you need to do to succeed online. There's no obligation.
Towing Experience Matters

Dennis owned a towing company for seven years while quadrupling its sales. Online advertising hinges on knowing and understanding the keywords that will get you found. Dennis knows those keywords.
Call Dennis Today

888-834-1123
Copyright 2008-2014 Tow Program, Inc. All rights reserved.