Cars and trucks are older than ever, with the average vehicle on American roads now at a record 12.6 years. As they get long in the tooth, breakdowns become more common, and when that happens a tow is often the only option. 

For drivers, having their car towed directly to a repair shop is usually the safest, most convenient, and cost-effective choice. Which raises the question: Should your shop offer towing services?

Adding towing to your lineup can bring undeniable benefits, beginning with reducing the risk of accidents and getting stranded drivers to safety. It also shows you’re committed to customer care, which helps strengthen loyalty and trust among your clientele. Plus, providing a one-stop solution sets your shop apart from the competition while adding a new revenue stream to your business.

But before you rush out and buy a shiny new wrecker, there are some key factors to consider–cost, insurance, and operational challenges, to name a few. So, with your shop’s success top of mind, let’s take a closer look at whether offering towing services is the right move.

The Benefits of Offering Towing Services

Customer Convenience: One of the main reasons customers choose an auto shop with towing services is convenience. Packaging the tow and repair together eliminates steps, making the situation simpler and less taxing on customers. That convenience gets magnified for disabled or elderly drivers, or someone stranded late at night.   

Customer Loyalty: Businesses that go the extra mile really stand out, and customers are more likely to stay loyal when they can count on you during emergencies. Offering towing also gives you an edge over shops that don’t. Suddenly, you’re a reliable problem-solver that cares for customers’ vehicles from soup to nuts.   

Additional Revenue Stream: Towing services can also be a shot in the arm for your bottom line. Whether you charge for it separately or roll it into repair costs, towing is another source of income. Plus, customers whose vehicles are already in your shop are more likely to sign off on repairs, bumping up your average ticket price.

Improved Efficiency: Transporting vehicles directly to your shop makes the whole process smoother. There’s no dealing with a third party, which means you’re fully in charge of the schedule. You’ll know exactly when the car’s set to arrive so you can start on repairs without any uncertainty or delays. 

Downsides and Challenges 

Overhead Costs: Adding towing services isn’t cheap. A tow truck alone costs some coin, but there are also ongoing expenses like fuel, maintenance, insurance, etc. Plus, you’ll need to hire and train drivers to operate the trucks safely, which adds to your overhead. Even if you decide to contract the service, you’re still looking at an extra line item.

Liability and Insurance: Towing introduces its own set of risks. Accidents, vehicle damage, and other liabilities can send you to the cleaners if you’re not properly insured. Speaking of which, expect specialized tow truck coverage to run you several hundred dollars per month.   

Operational Hurdles: Your “day job” is still vehicle repairs, so adding towing means juggling both. Fielding, scheduling, and monitoring tow services could stretch your team thin and pull you away from other core operations. You’ll have to carefully manage your shop’s workflow and employees’ priorities.  

Market Demand: You also need to figure out if there’s enough demand to justify offering roadside assistance. If most of your customers already have this service through AAA or their insurance, your market could be limited. It’s also worth considering whether established towing companies already have a hold on the area.

Key Considerations for Success

Start with a solid business plan. Get an idea of what it’ll cost to buy, operate, and maintain a tow truck, including expenses like driver salaries, fuel, insurance, and licensing fees. Run these numbers against your anticipated revenue to see if it’s worthwhile. If upfront costs are a concern, there’s also financing options; or, you could start off contracting with a local towing company before bringing the operation in-house.

Make sure all your documentation–licenses, permits, insurance coverage, etc.–is in order prior to launch. An insurance carrier that’s familiar with the risks of towing can steer you toward the right coverage. Also, familiarize yourself with your state’s regulations, including exemptions.

Hiring for any position is key, and your tow truck driver is no exception. Look for candidates with experience and a spotless safety record. Once on board, they should be trained on safe towing practices, customer service, and company policies. Your drivers are the face of your business, so they need to be professional, prompt, and courteous. Keep customers in the loop throughout the process, and ask for feedback afterward to build trust and improve your service.         

If you’re adding towing services, don’t keep it a secret. Promote it on your website, social media, advertisements, and in your shop. Offering introductory deals or bundling towing with other services could attract more business. And, check local rates so you can price your services competitively.     

Are You Ready to Drop the Hook?

Offering towing services can be a home run for your auto repair shop, one that delivers convenience for your customers and revenue potential for the business. That said, it does come with potential costs and challenges, so go in with your eyes open.   

Also, buying a rig isn’t the only game in town. Partnering with an established towing company lets you provide the service without going all in on your own truck. Just be sure to negotiate favorable rates and clearly define the terms so your customers still get the quality and reliability they’ve come to expect. Or, you could join forces with other businesses like dealerships, rental agencies, or roadside assistance providers to offer towing services–albeit indirectly.

If you’re looking for more ways to boost customer satisfaction and loyalty, Shopmonkey’s comprehensive automotive repair software can help you get more done in less time. Take your shop’s efficiency to the next level–request a demo today!