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Have you ever really thought about starting a vehicle towing business that you could run directly from your home? If you have, you know the importance of having a few tow trucks on hand. Although you can start your towing business off by purchasing one used tow truck, having a few used tow trucks is much better. Ideally, one may want to purchase two or three used tow trucks in order to operate their towing business. If business expands, a towing company will likely want to purchase even more trucks.

When you are just starting a vehicle towing business, there are important things to figure out. What rate will you charge your customers per vehicle towed? If you charge too much for each tow done, your customers may find another towing company that will transport their vehicle. If you charge too little for each vehicle tow that you do, you may find that you are actually not making a profit at all. Finding the right vehicle towing profit margin can be difficult when your business is new. If you take a couple of months to figure out what your expenses are, you can definitely figure out how much you need to charge per tow.

You also need to think about whether or not your towing business will accept a person’s towing insurance. There are many people who do not wish to pay out-of-pocket expenses just to have a tow truck haul their vehicle away. These people usually end up paying for towing services in their insurance premiums. If your business does not accept a person’s towing insurance, it gives reason for that customer to look for a different towing company. You can actually lose quite a lot of customers by not accepting the towing insurance that is provided through an individual’s auto insurance policy.

Above all, always make sure that your towing company operates promptly. Customers will want to hire a towing company that quickly hauls their vehicle away to a repair shop or their home. A towing company that has many used tow trucks but no customers is not going to make a great towing business.

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14y ago

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