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How does a towing company make money? A tow truck business makes money by charging customers for tows. A typical charge will include a flat fee for the tow, a mileage fee, and a storage fee.
If you're really low on start up funds, you might consider renting tow equipment until you have enough contracts to justify the purchase of your own tow truck. However, if you plan to have your business for a long time, it's probably worth the investment to purchase towing equipment.
Typical Profits The average towing business owners make anywhere between $30,000 and $100,000 annually.
Right now is the perfect time to join the tow truck industry: The automobile towing industry brought in $8 billion in revenue in 2019. This whopping figure proves that starting a towing business is possible and profitable, even in 2020.
If you're really low on start up funds, you might consider renting tow equipment until you have enough contracts to justify the purchase of your own tow truck. However, if you plan to have your business for a long time, it's probably worth the investment to purchase towing equipment.
7 tips for running a successful tow truck businessPut safety first.Create an employee handbook to outline your workplace safety policies.Be careful when you're hiring tow truck drivers.Train your drivers.Set up a pre-trip vehicle inspection procedure.Establish a preventive maintenance program.More items...?
You get cash customers in a number of ways. If you're listed in the yellow pages the older set will find you there. But online search engines and social media outlets such as Facebook is where the majority will find you. You also can get cash calls from referrals, postcards, and many other forms of advertising.
How much profit can a towing company make? The average tow truck business owner makes between $30,000 and $40,000 annually. The exact amount varies depending on the region that a business is in.