Should You Work For The Motor Clubs?
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- Опубликовано: 21 авг 2024
- thetowacademy.c...
Do you really make money working for motor clubs? Or are you just spinning your wheels?
A lot of you have emailed me and commented on the video • Why Does It Take So Lo...
where I laid out the truth about what the motor clubs are really doing.
Most of you guys agreed that they’re taking the lion’s share of the money and making motorists wait…for no good reason other than to line their pockets.
But there were a few people who questioned whether using Google would result in better, faster, quality service…more-so than calling their trusted 800 motor club number.
And I believe the reason for this is because of a horrible myth that’s being spread by the motor clubs.
One of the most egregious arguments the Motor Clubs use is to suggest that when motorist’s use some other means to procure their own tow truck they’re taking a big risk.
The implication here is that, calling a motor club ensures that motorists will receive the best trained operators, the highest quality service, and…that the guys who show up will have top of the line, state of the art equipment.
And that choosing your own towing company…you know…the ones you find on Google or some towing website…is a huge mistake.
They say…Who knows what you’re going to get? The people you call might just be…some inbred hillbilly who shows up in a 1989 Pickup truck with a chain to pull your car into town.
And that the unsuspecting motorist will be forced to…”ride in the back” with Uncle Todd and the family hound.
THE REALITY IS COMPLETELY THE OPPOSITE
Those who rely solely on Motor Club revenues operate on the thinnest of margins.
After paying for fuel, insurance, truck payments, payroll and all the rest there’s little money set aside for upgrading equipment and retaining quality drivers.
Those companies who rely solely on motor club revenue usually fall into 1 of 3 camps.
1. There’s the brand new company who services motor clubs as a stepping stone to build their business.
2. There’s the fleets, maintained by some of the clubs…who if forced to make a profit as a stand-alone company, would wither and die.
3. Then there’s the individual who believes they can make it on what motor clubs pay and…hard as they try…find themselves spinning their wheels. Working for nothing.
Those companies who know how to properly incorporate motor clubs into their businesses are not the one-tooth wonders the motor clubs warn their patrons about.
They are the ones who know that servicing motor clubs is a tool to be used to leverage their businesses. And that relying solely on motor club revenue is a mistake that will send your business to the bottom.
So how should you handle motor clubs in your business? Here are my suggestions. You should use one of these two methods when dealing with motor clubs.
1. You should fully embrace each and every one and do whatever is required to be number one with each company. And once you’ve gotten cozy with them…use the visibility you gain in your marketplace…to grow the cash-call side of your business. And as your business grows and you determine that servicing motor clubs less and less is in your best interest, then begin doing so.
2. You should register your company with each and every motor club but not be contracted. Doing this does not ensure you’ll receive a large number of calls. But what you do get is-“Your Rates.” Going this route means that, when a motor club dispatcher calls you…that usually means they haven’t had any luck finding anyone in their network to do the call. So they’ll be willing to pay your rates.
As I’ve said before…dealing with the motor clubs, right now, is not a partnership situation. They do not care about your company’s bottom line, they only care about their numbers. And although your motor club rep may be a nice guy…he’s still a company man, and-an employee only. It’s not his fault but he doesn’t fully understand the difficulties you face with running your business.
And I promise you this…You will absolutely love your business when it’s more profitable. And to get there you should only serve motor clubs-if it’s to your advantage, and even then…they should only be a small portion of your business.
Motor clubs send the cheapest guy. The motor club calls get put at the end of the call list and cash customers come first.
Is this true ..wow...Motor Clubs tells us we are first ....Wow ..learn something new Daily 🎈
One of our motor clubs like to just send them over with out talking to us approvel and then we tell the customer were not gonna do it
I was thinking this exact thought.
Independent Contractor
Been looking in to buying a rollback now I want a 4 car rollback just Incase the tow truck business is doing well I can do transporting for dealers too, if I can with my b license ,u think that’s a good idea or no ?
We have some guys in the county that tow for motor clubs they tow for next to nothing it hurts the other companies I have talked to them and they are still doing the work you can not run for 40 50 dollars 30 miles round-trip I have been in the towing industry for 24 years I have a good business but these guys are hurting it
I'm a fleet driver for a major motor club, best tow job ever
Don't get signed up with a motor club, you will loose money, guaranteed.
Do you still feel this way? 3 years later.
How much is bringing some one a gallon of gasoline or two?
I loved the video. I bought your book from Amazon a while back, read the whole thing. I'm working on my business plan now and have enough capital to start with 1 truck, plus licensing, insurance, marketing, etc. Starting out with motor clubs is what I have in mind, though I do not want to have a drop lot just yet. You think is a good idea to run the business out of my house starting off? Of course as I grow the business I will get a secure lot and get into police rotations and so on. Also, are industry certifications worth it? Thanks .
+snowman Good to hear from you. Running a towing operation out of your house is dependent on whether your community and licensing allows it. But...when you're just starting off...yes doing it from home for a while is a way to go. And...as far as industry certifications..Yes talk advantage of all the training you can reasonably afford. The more you know the more you earn. Besides your locale may require such a thing to be licensed.
@@TheTowAcademy ... Hey Don, it's been a long time since anything new. Are you still active?
Smart guy
Hello Don, my name is Roy, I'm bout to open a tow company , I been follow you for over a month , I really like all your comments, do you think is good to start my business with only two tow trucks ?.
thank you
Roy
I'm in the same process, I see this post is from a yr ago...did u proceed?
What do you think fair rates would be for roadside. Like what hook and how many free enroute and loaded and what rate per mile
Fully agree
How do you open rope boundaries
Wagner sc
Great advice
I'm putting together a business plan now and I'm getting hung up on predicting cash flow due to the segmented customer base. between motor clubs, police and cash calls it's difficult to know who will call and how often. Banks require cash flow statements for loans and it's my biggest hang up. what should I do?
+Daily Decisons It is difficult to determine who's going to call and when...that's the nature of the business. A couple of things need to be considered before you go to the bank. Those are: What location you're going to operate? And what are the requirements, or barriers to entry into that market? Then you need to determine what your business model will be. Will you stick solely with motor clubs? (i hope not) Will you do PPI's? Police work? etc... All of the above?
All this stuff matters because your decisions and the opportunities that exist in that area will determine how much money it'll cost to get into the business as well as how much you'll make. Hope that helps
don't go to a bank fund it yourself and start small. these days anyone can start with a cell phone. banks won't finance used trucks but a good used one will cost 20-30 an older but working truck could be had for a little as $10k excellent way to get your foot in the door.
What’s your take on google ads
smart
I don’t see the link
Hi Don, wanted to say, great video and currently I am building my business proposal to start my company in the rural area of Manitoba, Canada. Could you send me a message, would like to speak with you to ask a couple questions.
If you all haven't seen a documentary called... It's worse than you think... By revelations of Jesus Christ ministries... I suggest you do... All praise and glory to the most high Jesus Christ