Why Most Towing Company Owners Go Broke

A business no app can replace, a phone that rings all night, a five hundred dollar tow, seventy five dollars a day in storage, and a lot full of cars you can sell. Here's what the ads never lead with: a used rollback costs seventy to one hundred twenty thousand dollars, the biggest source of calls in towing pays thirty five to seventy five dollars for a call that costs you about a hundred to run, the police rotation that pays real money hands you one call for every truck on a list of twenty, and insurance on a single tow truck runs fifteen to thirty thousand dollars a year. In this video, we run a two truck towing company through the Cost Matrix: the rotation trap where the calls you can get do not pay and the calls that pay you cannot get, the day that grosses seven hundred eighty dollars and leaves one hundred sixty, the motor club rate that has not moved in fifteen years, the impounded car that eats two thousand dollars of storage you will never collect, the one complaint that gets you suspended for ninety days, and why the real money in towing goes to the motor club, the insurer, the truck lender, and the family that owns the impound lot and the heavy wrecker. This has been Cost Matrix. Run the numbers before the numbers run you. Tags: #towing #towtruck #costmatrix #businessbreakdown #towingcompany #roadsideassistance #entrepreneur #businessfailure #smallbusiness #trucking #towlife #businessanalysis #economics #impound #buyabusiness